Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
i of x
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations
California Code of Regulations Title 4
Division 19. Department of Cannabis Control
Table of Contents
Chapter 1. All Licensees ................................................................................................... 1
Article 1. Division Definitions and General Requirements ............................................. 1
§15000. Definitions. ................................................................................................... 1
§15000.1. General Requirements. ............................................................................. 7
§15000.2. A- and M-Designations. ............................................................................ 8
§15000.3. Premises Requirements. .......................................................................... 8
§15000.4. Subletting of Premises. ............................................................................. 9
§15000.5. Licensee’s Responsibility for Acts of Employees and Agents. ................ 10
§15000.6. Age Restriction. ...................................................................................... 10
§15000.7. Storage of Inventory. .............................................................................. 10
Article 2. Applications .................................................................................................. 10
§15001. Provisional Licenses. ................................................................................. 10
§15001.1. Issuance of Provisional License. ............................................................. 11
§15001.2. Renewal of Provisional License. ............................................................. 13
§15001.3. Notice of Provisional License Review. .................................................... 16
§15001.4. Immediate Suspension of Provisional License........................................ 16
§15002. Annual License Application Requirements. ............................................... 17
§15003. Owners of Commercial Cannabis Businesses. .......................................... 22
§15004. Financial Interest in a Commercial Cannabis Business. ............................ 23
§15004.1. Independence of Testing Laboratories. .................................................. 24
§15005. Personnel Prohibited from Holding Licenses. ............................................ 24
§15006. Premises Diagram. .................................................................................... 25
§15007. Landowner Approval. ................................................................................. 27
§15007.1. Electronic Signature. ............................................................................... 28
§15009. Limited Waiver of Sovereign Immunity. ..................................................... 28
§15010. Compliance with the California Environmental Quality Act (CEQA). .......... 29
§15011. Additional Information. ............................................................................... 31
§15012. Incomplete and Abandoned Applications. .................................................. 35
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
ii of x
§15013. Withdrawal of Application. ......................................................................... 35
Article 3. Licensing ...................................................................................................... 36
§15014. Fees. .......................................................................................................... 36
§ 15014.1. Equity Fee Relief. .................................................................................. 41
§ 15014.2. Fees. Large Cultivation License............................................................. 46
§15015. Payment of Fees. ....................................................................................... 47
§15017. Substantially Related Offenses and Criteria for Rehabilitation. ................. 47
§15018. Additional Grounds for Denial of a License. ............................................... 49
§15019. Excessive Concentration. .......................................................................... 50
§15020. Renewal of License. .................................................................................. 51
§15020.1. Cultivation License Limited Operations Status........................................ 52
§15020.2. Cultivation License Reductions in Size. .................................................. 53
§15020.3. Modifying Cultivation License Renewal Date. ......................................... 55
§15021. Denial of License. ...................................................................................... 57
§15023. Business Modifications. ............................................................................. 57
§15024. Death, Incapacity, or Insolvency of a Licensee. ......................................... 59
§15024.1. Cannabis and Cannabis Products After Termination of License. ............ 60
§15025. Additional Premises Requirements for Retailers and Microbusinesses
Authorized to Engage in Retail. ............................................................................... 61
§15027. Modification of Premises or Operations. .................................................... 62
§ 15027.1. Conversion to Large and Medium Cultivation Licenses. ........................ 63
§15034. Significant Discrepancy in Inventory. ......................................................... 65
§15035. Notification of Criminal Acts, Civil Judgments, Violations of Labor
Standards, and Revocation of a Local License, Permit, or Other Authorization After
Licensure. ................................................................................................................ 65
§15036. Notification of Theft, Loss, and Criminal Activity. ....................................... 66
§15037. General Record Retention Requirements. ................................................. 66
§15037.1. Licensee Authorization to Release Data to Financial Institutions............ 67
§15037.2. Financial Institution Request for Licensee Information. .......................... 68
§15038. Disaster Relief. .......................................................................................... 69
Article 4. Posting and Advertising ................................................................................ 70
§15039. License Posting Requirement. ................................................................... 70
§15040. Advertising Placement and Prohibitions. ................................................... 71
§15040.1. Marketing Cannabis Goods as Alcoholic Products. ................................ 72
§15040.2. Prohibited Business Promotions. ............................................................ 72
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
iii of x
§15041. Age Confirmation in Advertising................................................................. 72
§15041.1. Branded Merchandise. ............................................................................ 73
§15041.2. Trade Samples. ...................................................................................... 73
§15041.3. Designating Trade Samples. .................................................................. 74
§15041.4. Providing Trade Samples. ...................................................................... 74
§15041.5. Requirements for Trade Samples. .......................................................... 75
§15041.6. Consumption of Trade Samples. ............................................................ 76
§15041.7. Trade Sample Limits. .............................................................................. 76
Article 5. Security Measures ........................................................................................ 77
§15042. Premises Access Requirements. ............................................................... 77
§15042.1. Security Plan for Licensed Manufacturers. ............................................. 78
§15043. Licensee Employee Badge Requirement. .................................................. 79
§15044. Video Surveillance System. ....................................................................... 79
§ 15045. Security Personnel. ................................................................................... 80
§15046. Locks. ........................................................................................................ 81
§15047. Alarm System. ........................................................................................... 81
Article 6. Track and Trace Requirements .................................................................... 82
§15047.1. Definitions. .............................................................................................. 82
§15047.2. General Requirements. ........................................................................... 82
§15048. Training and Credentialing. ........................................................................ 82
§15048.1. Responsibilities of the Designated Account Manager. ............................ 83
§15048.2. General Tag Requirements. ................................................................... 83
§15048.3. Ordering Tags. ........................................................................................ 84
§ 15048.4. Tagging of Cannabis Plants. .................................................................. 84
§15048.5. Use of Harvest Batch Name and Package Tags..................................... 85
§15049. Track and Trace Reporting. ....................................................................... 85
§15049.1. Additional Requirements for Recording Cultivation Activities. ................ 86
§15049.2. Recording Transfers of Cannabis and Cannabis Products. .................... 87
§15049.3. Track and Trace Requirements for Delivery. ........................................... 88
§15050. Loss of Access........................................................................................... 90
§15051. Track and Trace System Reconciliation. ................................................... 90
Article 7. Acceptance or Rejection of Shipments ......................................................... 90
§15052. Returns. ..................................................................................................... 90
§15052.1. Acceptance or Rejection of Shipments. .................................................. 91
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
iv of x
Chapter 2. Distributors .................................................................................................... 92
§15300. Distribution Activities. .................................................................................... 92
§15301. Storage Services. .......................................................................................... 92
§15302. Storage of Batches for Testing. ..................................................................... 92
§15303. Packaging, Labeling, and Rolling. ................................................................. 93
§15303.1. Net Weight of Dried Flower. ........................................................................ 93
§15304. Testing Arrangements. .................................................................................. 93
§15305. Testing Sample. ............................................................................................. 94
§15306. Regulatory Compliance Testing Results. ....................................................... 94
§15307. Quality-Assurance Review. ............................................................................ 95
§15307.1. Quality-Assurance Review for Labeling Cannabinoids and Terpenoids. .... 96
§15307.2. Licensed Distributor to Licensed Distributor Transfers. .............................. 97
§15308. Insurance Requirements. .............................................................................. 97
§15309. Inventory Accounting. .................................................................................... 98
§15311. Requirements for the Transportation of Cannabis and Cannabis Products. .. 98
§15312. Required Transport Vehicle Information. ..................................................... 100
§15313. Transport Personnel Requirements. ............................................................ 100
§15314. Shipping Manifest. ....................................................................................... 100
§15315. Distributor Transport Only License. ............................................................. 101
Chapter 3. Retailers ...................................................................................................... 102
§15400. Access to Retailer Premises. ....................................................................... 102
§15402. Customer Access to the Retail Area. ........................................................... 102
§15403. Hours of Operation. ..................................................................................... 103
§15403.1. Requirements While Not Open for Business. ........................................... 103
§15404. Retail Customers. ........................................................................................ 103
§15405. Cannabis Goods Display. ............................................................................ 104
§15406. Cannabis Goods for Sale............................................................................. 104
§15407. Sale of Non-Cannabis Goods. ..................................................................... 105
§15408. Sale of Live Plants and Seeds. .................................................................... 105
§15409. Daily Limits. ................................................................................................. 106
§15410. Customer Return of Cannabis Goods. ......................................................... 106
§15411. Requirements for Providing Free Cannabis Goods to Medicinal Consumers.
.................................................................................................................................. 107
§15412. Prohibition on Packaging and Labeling by a Retailer. ................................. 109
§15413. Cannabis Goods Packaging and Exit Packaging. ........................................ 109
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
v of x
§15414. Non-Storefront Retailer. ............................................................................... 109
§15415. Delivery Employees. .................................................................................... 110
§15415.1. Deliveries Facilitated by Technology Platforms. ....................................... 110
§15416. Delivery to a Physical Address. ................................................................... 111
§15417. Delivery Vehicle Requirements. ................................................................... 112
§15418. Cannabis Goods Carried During Delivery. ................................................... 113
§15419. Cannabis Consumption During Delivery. ..................................................... 114
§15420. Delivery Request Receipt. ........................................................................... 114
§15421. Delivery Route. ............................................................................................ 115
§15422. Receiving Shipments of Inventory. .............................................................. 115
§15423. Inventory Documentation. ............................................................................ 116
§15424. Inventory Reconciliation. ............................................................................. 116
§15427. Retailer Premises-to-Retailer Premises Transfer. ....................................... 117
Chapter 4. Microbusiness ............................................................................................. 117
§ 15500. Microbusiness. ............................................................................................ 117
Chapter 5. Cannabis Events ......................................................................................... 118
§15600. Cannabis Event Organizer License. ............................................................ 118
§15601. Temporary Cannabis Event Requirements. ................................................. 118
§15602. Temporary Cannabis Event Sales. .............................................................. 120
§15603. Temporary Cannabis Event Consumption. .................................................. 122
§15603.1. Participation in Temporary Cannabis Events by Non-Retail Licensees. ... 122
§15604. Informational or Educational Cannabis Events. ........................................... 123
Chapter 6. Testing Laboratories ................................................................................... 123
Article 1. Chapter Definitions ..................................................................................... 123
§15700. Definitions. ............................................................................................... 123
Article 2. Laboratory License ..................................................................................... 128
§15701. General Laboratory License Requirements. ............................................ 128
§15702. Laboratory License Application. ............................................................... 129
§15703. Interim Testing Laboratory License. ......................................................... 130
Article 3. Sampling Cannabis and Cannabis Products .............................................. 131
§15704. Sampling Standard Operating Procedures. ............................................. 131
§15705. General Sampling Requirements. ............................................................ 132
§15706. Chain of Custody (COC). ......................................................................... 133
§ 15707. Harvest Batch Sampling. ........................................................................ 134
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
vi of x
§15708. Cannabis Product Batch and Pre-Roll Sampling. .................................... 135
§15709. Laboratory Transportation of Cannabis and Cannabis Products Samples.
.............................................................................................................................. 135
§15710. Laboratory Receipt of Samples Obtained from a Distributor or
Microbusiness. ....................................................................................................... 137
Article 4. Standard Operating Procedures ................................................................. 137
§15711. Laboratory Analyses Standard Operating Procedures. ............................ 137
§15712. Test Methods. .......................................................................................... 138
§15712.1. Cannabinoid Test Method for Dried Flower, Including Non-Infused Pre-
Rolls....................................................................................................................... 138
§15712.2. Verification of Cannabinoid Test Method for Dried Flower, Including Non-
Infused Pre-Rolls. .................................................................................................. 139
§15713. Validation of Test Methods. ..................................................................... 140
Article 5. Laboratory Testing and Reporting .............................................................. 142
§15714. Required Testing. .................................................................................... 142
§15717. Moisture Content and Water Activity Testing. .......................................... 143
§15718. Residual Solvents and Processing Chemicals Testing. ........................... 143
§15719. Residual Pesticides Testing. .................................................................... 145
§15720. Microbial Impurities Testing. .................................................................... 148
§15721. Mycotoxin Testing. ................................................................................... 148
§15722. Foreign Material Testing. ......................................................................... 149
§15723. Heavy Metals Testing. ............................................................................. 149
§15724. Cannabinoid Testing. ............................................................................... 150
§15725. Terpenoid Testing. ................................................................................... 151
§15726. Certificate of Analysis (COA). .................................................................. 152
Article 6. Post Testing Procedures ............................................................................ 153
§15727. Remediation and Retesting. .................................................................... 153
§15728. Post Testing Sample Retention. .............................................................. 154
Article 7. Laboratory Quality Assurance and Quality Control ..................................... 154
§15729. Laboratory Quality Assurance (LQA) Program. ....................................... 154
§15730. Laboratory Quality Control (LQC) Samples. ............................................ 155
§15731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative
Analyses. ............................................................................................................... 157
§15732. Data Package. ......................................................................................... 157
§15733. Required Proficiency Testing. .................................................................. 158
§15734. Satisfactory and Unsatisfactory Proficiency Test Performance................ 159
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
vii of x
§15735. Laboratory Audits. .................................................................................... 159
Article 8. Laboratory Employee Qualifications ........................................................... 160
§15736. General Laboratory Employee Qualifications. ......................................... 160
§15737. Supervisor or Management Responsibilities and Qualifications. ............. 160
§15738. Analyst and Sampler Qualifications. ........................................................ 160
Chapter 7. Cultivators ................................................................................................... 161
Article 1. General Cultivation Requirements .............................................................. 161
§16201. Cultivation License Types. ....................................................................... 161
§ 16201.1. Large Cultivation Licenses. .................................................................. 162
§16202. General Cultivation Requirements. .......................................................... 162
§16209. Medium Cultivation License Limits. .......................................................... 163
Article 2. Cultivation Site Requirements .................................................................... 163
§16300. Cultivation Requirements. ........................................................................ 163
§ 16300.1. Additional Cultivation Requirements for Large Licenses. ..................... 163
§16301. Seed Production Requirements for Nursery Licensees. .......................... 164
§16302. Research and Development Requirements for Nursery Licensees. ........ 164
§16303. Cultivation Requirements for Processor Licensees. ................................ 164
§16304. General Environmental Protection Measures. ......................................... 164
§16305. Renewable Energy Requirements. .......................................................... 165
§16306. Generator Requirements. ........................................................................ 165
§16307. Pesticide Use Requirements. .................................................................. 166
§16308. Canopy Requirements. ............................................................................ 167
§16309. Cultivation Plan Requirements................................................................. 167
§16310. Pest Management Plan. .......................................................................... 168
§16311. Supplemental Water Source Information. ................................................ 168
Chapter 8. Manufacturers ............................................................................................. 170
Article 1. Manufacturing Licenses .............................................................................. 170
§17006. Manufacturing License Types. ................................................................. 170
§17009. Additional Activities. ................................................................................. 171
§17117. License Constraints. ................................................................................ 171
Article 2. Shared-Use Facilities ................................................................................. 171
§ 17124. Definitions. .............................................................................................. 171
§17126. Registration to Operate a Shared-Use Facility......................................... 172
§17127. Shared-Use Facility Conditions for Operation. ......................................... 173
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
viii of x
§17128. Shared-Use Facility Compliance Requirements. ..................................... 174
Article 3. Solvent Use and Safety .............................................................................. 174
§17202.1. General Requirements for Extraction and Post-Extraction Processing. 174
§17203. Permissible Extractions. .......................................................................... 175
§17204. Solvent Requirements. ............................................................................ 175
§17205. Additional Requirements for Ethanol Operations. .................................... 176
§17206. Closed-Loop Extraction System Requirements. ...................................... 176
§17206.1. Certification of Closed-Loop Systems. .................................................. 177
Article 4. Good Manufacturing Practices ................................................................... 178
§17207. Manufacturing Practices Definitions. ........................................................ 178
§17208. Quality Control Program. ......................................................................... 180
§17209. Grounds, Building, and Manufacturing Premises. .................................... 180
§17210. Equipment and Utensils. .......................................................................... 182
§17211. Manufacturing Personnel. ........................................................................ 183
§17211.1. Training Program. ................................................................................. 184
§17212. Cannabis Product Components. .............................................................. 186
§17213. Manufacturing Procedures. ...................................................................... 187
§17214. Product Quality Plan. ............................................................................... 187
§17215. Master Manufacturing Protocol. ............................................................... 189
§17216. Batch Production Record. ........................................................................ 190
§17217. Standard Operating Procedures. ............................................................. 191
§17218. Inventory Control – Cannabis and Cannabis Products. ........................... 192
Article 5. Special Requirements ................................................................................ 192
§17219. Juice Manufacturing. ................................................................................ 192
§17220. Dried Meat Manufacturing. ...................................................................... 193
Chapter 9. Other Responsibilities ................................................................................. 193
§17221. Weighing Devices and Weighmasters. ........................................................ 193
§17223. Waste Management. ................................................................................... 194
§17225. Product Complaints. .................................................................................... 196
§17226. Voluntary Recalls. ........................................................................................ 197
§17227. Mandatory Recalls. ...................................................................................... 198
Chapter 10. Cannabis and Cannabis Products ............................................................. 198
Article 1. Standards for Manufactured Cannabis Products ........................................ 198
§17300. Prohibited Products. ................................................................................ 198
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
ix of x
§17301. Additional Requirements for Edible Cannabis Products. ......................... 199
§17302. Additional Requirements for Topical Cannabis Products. ........................ 200
§17302.1. Additional Requirements for Tinctures. ................................................. 200
§17303. Orally Consumed Products Containing Alcohol. ...................................... 200
§17303.1. Additional Requirements for Inhaled Products. ..................................... 200
Article 2. Cannabinoid Concentration Limits .............................................................. 201
§17304. THC Concentration Limits. ....................................................................... 201
Article 3. Failed Product Batches .............................................................................. 201
§17305. Failed Product Batches. ........................................................................... 201
Chapter 11. Labeling and Packaging Requirements ..................................................... 203
Article 1. Bulk Cannabis or Cannabis Products, Immature Plants, and Seeds .......... 203
§17398. Bulk Cannabis or Cannabis Products. ..................................................... 203
§17399. Immature Plants. ...................................................................................... 203
§17400. Seeds. ..................................................................................................... 204
Article 2. Cannabis Products Released from Manufacturing ..................................... 204
§17401. Release to Distributor as Finished Product. ............................................. 204
Article 3. Labeling Requirements ............................................................................... 204
§ 17402. General Provisions. ................................................................................ 204
§ 17403. Primary Panel Labeling Requirements: Nonmanufactured Cannabis
Goods. ................................................................................................................... 205
§17404. Primary Panel Labeling Requirements: Manufactured Cannabis Products.
.............................................................................................................................. 205
§17405. Additional Primary Panel Labeling Requirements: Edible Products. ........ 206
§17406. Informational Panel Labeling Requirements. ........................................... 206
§17407. Cannabinoid Content Labeling. ............................................................... 207
§17408. Labeling Restrictions. .............................................................................. 209
§17409. Statement of Characteristic Anticipated Effects. ...................................... 210
§17410. Universal Symbol. .................................................................................... 210
Article 4. Packaging ................................................................................................... 210
§17411. Packaging. ............................................................................................... 210
§17412. Child-Resistant Packaging Requirements. .............................................. 211
Chapter 12. Enforcement .............................................................................................. 212
Article 1. Authority ..................................................................................................... 212
§17800. Right of Access. ....................................................................................... 212
Article 2. Compliance and Enforcement Actions ........................................................ 213
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024)
x of x
§17801. Notice to Comply. .................................................................................... 213
§17801.1. Notice of Violation. ................................................................................ 213
§17801.5. Embargo of Cannabis or Cannabis Products. ....................................... 214
§17802. Citations; Orders of Abatement; Administrative Fines. ............................ 216
§17803. Contesting Citations. ................................................................................ 216
§17804. Citation Compliance. ................................................................................ 217
§17805. Minor Decoys. .......................................................................................... 218
§17806. Attire and Conduct. .................................................................................. 218
§17807. Entertainers and Conduct. ....................................................................... 219
Article 3. Disciplinary Actions .................................................................................... 219
§17808. Additional Grounds for Discipline. ............................................................ 219
§17809. Disciplinary Actions. ................................................................................. 220
§17810. Interim Suspension. ................................................................................. 221
§17813. Enforcement Costs. ................................................................................. 222
§17814. Disciplinary Guidelines. ........................................................................... 223
Article 4. Emergency Decision and Orders ................................................................ 223
§17815. Emergency Decision and Order. .............................................................. 223
Article 5. Posting Notices of Suspension and Revocation ......................................... 225
§17816. Posting of Notice of Suspension. ............................................................. 225
§17817. Posting of Notice of Revocation. .............................................................. 226
Chapter 13. Other Provisions........................................................................................ 227
Article 1. Research Funding ...................................................................................... 227
§17900. Eligibility. .................................................................................................. 227
§17901. Request for Proposals. ............................................................................ 227
§17902. Selection Process and Criteria................................................................. 228
§17903. Release of Funds. .................................................................................... 228
§17904. Reports to the Department. ..................................................................... 229
§17905. Research Records. .................................................................................. 229
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 1 of 229
Chapter 1. All Licensees
Article 1. Division Definitions and General Requirements
§15000. Definitions.
(a) “Act” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act,
codified in Business and Professions Code section 26000, et seq.
(b) “Adulterated” or “adulteration” has the meaning stated in section 26039.6(a) of the
Act.
(c) “Allergen” means a major food allergen as defined in 21 U.S.C § 321(qq).
(d) “Appellation of Origin” means a designation to indicate that the cannabis meets the
requirements developed by the program established pursuant to section 26063 of the
Act.
(e) “Applicant” means an owner that is applying for a Department-issued license.
(f) “Batch” means a specific quantity of homogeneous cannabis or cannabis product that
is one of the following types:
(1) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves,
and other cannabis plant matter that is harvested at the same time, and, if applicable,
cultivated using the same pesticides and other agricultural chemicals.
(2) “Manufactured cannabis batch” or “production batch” means either:
(A) An amount of cannabis concentrate or extract produced in one production cycle
using the same extraction methods and standard operating procedures; or
(B) An amount of a type of cannabis product produced in one production cycle using the
same formulation and standard operating procedures.
(g) “Cannabis accessories” has the meaning stated in Health and Safety Code section
11018.2.
(h) “Cannabis concentrate” means cannabis that has undergone a process to
concentrate one or more active cannabinoids, thereby increasing the product’s potency.
For purposes of this division, “cannabis concentrate” includes, but is not limited to, the
kief, tinctures, capsules, suppositories, extracts, butter, vape cartridges, inhaled products
(e.g., dab, shatter, and wax), and tablets as defined in subsection (nnn).
(i) “Cannabis goods” means cannabis and cannabis products in final form and packaged
and labeled as they will be sold at retail. For the purposes of section 15311, “cannabis
goods” includes all cannabis and cannabis products in any form.
(j) “Cannabis product” means cannabis that has undergone a process whereby the plant
material has been transformed into a concentrate, including, but not limited to,
concentrated cannabis, or an edible or topical product containing cannabis or
concentrated cannabis and other ingredients.
(k) “Cannabis product quality,” “quality cannabis product,” or “quality” means that the
cannabis product consistently meets the established specifications for identity,
cannabinoid concentration, homogeneity, composition, and testing standards pursuant to
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 2 of 229
sections 15718 through 15724, and has been manufactured, packaged, labeled, and
held under conditions to prevent adulteration and misbranding.
(l) “Cannabis waste” means any material intended for disposal that contains cannabis but
is not otherwise considered a hazardous waste. Cannabis waste consisting solely of
plant material shall be considered an organic waste as defined in Public Resources Code
section 42649.8(d).
(m) “Canopy” means the designated area(s) at a licensed premises that will contain
mature plants at any point in time.
(n) “CBD” means the compound cannabidiol, CAS number 13956-29-1. “Total CBD” is
defined in section 15700(qqq).
(o) “Commercial cannabis activity” includes the cultivation, possession, manufacture,
distribution, processing, storing, laboratory testing, packaging, labeling, transportation,
delivery, or sale of cannabis or cannabis products as provided for in this division, or
acting as a cannabis event organizer for temporary cannabis events.
(p) “Commercial-grade, non-residential door lock” means a lock manufactured for
commercial use.
(q) “Cultivation” means any activity involving the planting, growing, harvesting, drying,
curing, grading, or trimming of cannabis.
(r) “Cultivation site” means a location where commercial cannabis is planted, grown,
harvested, dried, cured, graded, or trimmed, or a location where any combination of
those activities occurs.
(s) “Delivery employee” means an individual employed by a licensed retailer or licensed
microbusiness authorized to engage in retail sales who delivers cannabis goods from the
licensed retailer or licensed microbusiness premises to a customer at a physical address.
(t) "Designated responsible party" means the individual identified by the commercial
cannabis business who has legal authority to bind the commercial cannabis business
and who is the primary contact for the application and license-related issues.
(u) “Distribution” means the procurement, sale, and transport of cannabis and cannabis
products between licensees.
(v) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or
otherwise processed, excluding leaves and stems.
(w) “Edible cannabis product” means a cannabis product intended to be used orally, in
whole or in part, for human consumption. For purposes of this division, “edible cannabis
product” includes cannabis products that dissolve or disintegrate in the mouth, but does
not include any product otherwise defined as “cannabis concentrate.”
(x) “Extraction” means a process by which cannabinoids are separated from cannabis
plant material through chemical or physical means.
(y) “Final form” refers to cannabis and cannabis products that are in the form in which the
cannabis or cannabis product will be consumed or used.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 3 of 229
(z) “Flowering” means that a cannabis plant has formed a mass of pistils measuring
greater than one-half inch wide at its widest point.
(aa) “Free cannabis goods” means any amount of cannabis goods provided to any
person without cost or payment or exchange of any other thing of value.
(bb) “Immature plant” or “immature” means, for purposes of cultivation: a cannabis plant
that has a first true leaf measuring greater than one-half inch long from base to tip if
started from seed or a mass of roots measuring greater than one-half inch wide at its
widest point if vegetatively propagated and outside of a tissue container, but that is not
flowering; or a container with one or more cannabis protoplasts, cells, shoots, or plantlets
in culture. For retail purposes, “immature plant” or “immature” means a cannabis plant
that is nonflowering and shorter and narrower than 18 inches.
(cc) “Indoor cultivation” means the cultivation of cannabis within a permanent structure
using exclusively artificial light or within any type of structure using artificial light at a rate
above twenty-five watts per square foot.
(dd) “Informational panel” means any part of the cannabis product label that is not the
primary panel and that contains required labeling information.
(ee) “Infusion” means a process by which cannabis, cannabinoids, or cannabis
concentrates are directly incorporated into a product formulation to produce a cannabis
product.
(ff) “Infused pre-roll” means a pre-roll into which cannabis concentrate (other than kief) or
other ingredients have been incorporated.
(gg) “Ingredient” means any substance that is used in the manufacture of a cannabis
product and that is intended to be present in the finished cannabis product.
(hh) “Kief” means the resinous trichomes of cannabis that have been separated from the
cannabis plant.
(ii) “Labeling” means any label or other written, printed, or graphic matter upon cannabis
or a cannabis product, upon its container or wrapper, or that accompanies any cannabis
or cannabis product.
(jj) “Licensee” means any person holding a license issued under the Act.
(kk) “Light deprivation” means the use of any technique to eliminate natural light in order
to induce flowering.
(ll) “Limited-access area” means an area in which cannabis or cannabis products are
stored or held and is only accessible to a licensee and authorized persons.
(mm) “Lot” means a batch, or specifically identified portion of a batch.
(nn) “Lot number” or “batch number” means a distinctive group of numbers, letters, or
symbols or any combination of these that is unique to a group of cannabis or cannabis
products.
(oo) “Manufacture” means to compound, blend, extract, infuse, or otherwise make or
prepare a cannabis product.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 4 of 229
(1) The term “manufacture” includes the following processes:
(A) Extraction.
(B) Infusion.
(C) Packaging or repackaging of cannabis products.
(D) Labeling or relabeling the packages of cannabis products.
(E) “Post-extraction processing” or “post-processing,” which means a process by which
one or more active cannabinoids in cannabis concentrate are further concentrated either
by chemical or physical means.
(F) Remediation of failed harvest batches or cannabis product batches.
(2) The term “manufacture” does not include the following:
(A) The repacking of cannabis products from a bulk shipping container by a distributor or
retailer where the product’s original packaging and labeling is not otherwise altered.
(B) The preparation of pre-rolls by a licensed distributor in accordance with the
requirements of section 15303.
(C) The collection of the resinous trichomes that are dislodged or sifted from the
cannabis plant incidental to cultivation activities by a licensed cultivator.
(D) The processing of nonmanufactured cannabis products, as defined in subsection
(eee).
(E) The labeling or relabeling of a package containing cannabis goods with the amount of
cannabinoids and terpenoids based on regulatory compliance testing results by a
distributor in accordance with sections 15303 and 17407.
(pp) “Manufacturing” or “manufacturing operation” means all aspects of the extraction
process, infusion process, post-processing, remediation, and packaging and labeling
processes, including processing, preparing, holding, and storing of cannabis products.
Manufacturing also includes any processing, preparing, holding, or storing of
components and ingredients.
(qq) “Mature plant” or “mature” means a cannabis plant that is flowering.
(rr) “Medicinal cannabis patient” includes both a qualified patient as defined in Health and
Safety Code section 11362.7 and a person in possession of a valid identification card
issued under Health and Safety Code section 11362.71.
(ss) “Mixed-light cultivation” means the cultivation of mature cannabis in a greenhouse,
hoop-house, glasshouse, conservatory, hothouse, or other similar structure using a
combination of:
(1) Natural light and either of the models listed below:
(A) “Mixed-light Tier 1,” without the use of artificial light or the use of artificial light at a
rate above zero, but no more than six watts per square foot; or
(B) “Mixed-light Tier 2,” the use of artificial light at a rate above six and below or equal to
twenty-five watts per square foot.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 5 of 229
(tt) “Nonmanufactured cannabis products” means final form items that contain only
cannabis, leaf, pre-roll filter tips, or paper.
(uu) “Nonvolatile solvent” means any solvent used in the extraction process that is not a
volatile solvent. “Nonvolatile solvent” includes carbon dioxide, ethanol, and
nonhydrocarbon-based or other solvents such as water, vegetable glycerin, vegetable oil,
animal fat, and glycerin.
(vv) “Nursery” means all activities associated with producing clones, immature plants,
seeds, and other agricultural products used specifically for the propagation and
cultivation of cannabis.
(ww) “Orally consumed concentrate” means a cannabis concentrate that is intended to
be consumed by mouth and is not otherwise an edible cannabis product. “Orally
consumed concentrate” includes tinctures, capsules, and tablets as defined in subsection
(nnn).
(xx) “Outdoor cultivation” means the cultivation of mature cannabis without the use of
artificial lighting in the canopy area at any point in time.
(yy) “Package” or “packaging” means any container or wrapper that may be used for
enclosing or containing any cannabis or cannabis product. “Package” does not include a
shipping container or outer wrapping used solely for the transport of cannabis or
cannabis products in bulk quantity to a licensed premises.
(zz) “Person” includes any individual, firm, partnership, joint venture, association,
corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or
any other group or combination acting as a unit, and the plural as well as the singular.
(aaa) “Pest” means an undesired insect, rodent, nematode, fungus, bird, vertebrate,
invertebrate, weed, virus, bacteria, or other microorganism (except microorganisms on or
in living humans or other living animals) that is, or is liable to become, injurious,
dangerous, or detrimental to health, the environment, or the agricultural environment of
the state.
(bbb) “Pre-roll” means any combination of the following rolled in paper: flower, shake, leaf,
or kief that is obtained from accumulation in containers or sifted from loose, dry cannabis
flower or leaf with a mesh screen or sieve.
(ccc) “Premises” means the designated structure(s) and land specified in the application
that is owned, leased, or otherwise held under the control of the applicant or licensee
where the commercial cannabis activity will be or is conducted. The premises shall be a
contiguous area and shall only be occupied by one licensee.
(ddd) “Primary panel” means the part of a cannabis goods label that is most likely to be
displayed, presented, shown, or examined under customary conditions of display for
retail sale.
(eee) “Processing” means all activities associated with the drying, curing, sifting, grading,
trimming, rolling, storing, packaging, and labeling of cannabis or nonmanufactured
cannabis products.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 6 of 229
(fff) “Product Identity” or “identity of the product” means the generic, common, or usual
name of a product by which it is most commonly known.
(ggg) “Promotional materials” means any form, letter, circular, pamphlet, publication, or
other written material directed to a customer or prospective customer to induce retail
sales. Promotional material does not include permitted signs, displays, decorations,
cannabis accessories, or cannabis or cannabis products furnished by a licensed
cultivator, licensed manufacturer, licensed distributor, licensed microbusiness, or
licensed cannabis event organizer to a retail licensee for advertising purposes.
Promotional materials shall have no intrinsic or secondary value.
(hhh) “Publicly owned land” means any building or real property that is owned, leased, or
occupied by a city, county, state, federal, or other government entity.
(iii) "Quarantine" means the storage or identification of cannabis or cannabis product to
prevent use, movement or transfer of the cannabis or cannabis product.
(jjj) “Residential area” is an area that is within 600 feet of any single-family or multifamily
residence, other than commercial hotels, motels, and similar establishments for temporary
lodging.
(kkk) “Retail area” means a building, room, or other area that is open to the public, upon
the licensed retailer or licensed microbusiness premises authorized to engage in retail
sales in which cannabis goods are sold or displayed.
(lll) “Serving” means the designated amount of cannabis product established by the
manufacturer to constitute a single unit.
(mmm) “Sublet” means to lease or rent all or part of a leased or rented property.
(nnn) “Tablet” means a solid preparation containing a single serving of THC or other
cannabinoid that is intended to be swallowed whole, not formulated to be chewable,
dispersible, effervescent, orally disintegrating, used as a suspension, or consumed in a
manner other than swallowed whole, and does not contain any added natural or artificial
flavor or sweetener.
(ooo) “Tamper-evident” means that the cannabis goods packaging is sealed in a manner
that prevents the packaging from being opened without obvious destruction of the seal.
(ppp) “Terpenes” means terpenes, terpenoids, flavonoids, polyphenols, and other
naturally occurring phytochemicals and secondary metabolites contributing to the aroma
or flavor of cannabis.
(qqq) “THC” or “delta-9 THC” means the compound tetrahydrocannabinol, CAS number
1972-08-3. “Total THC” is defined in section 15700(rrr).
(rrr) “Tincture” means a solution of cannabis extract, derived either directly from the
cannabis plant or from a manufactured cannabis extract, dissolved in alcohol, glycerin, or
vegetable oils. For purposes of this definition, “vegetable” includes botanically classified
fruits and vegetables and their seeds.
(sss) “Topical cannabis product” means a cannabis product intended to be applied to the
skin rather than ingested or inhaled.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 7 of 229
(ttt) “Track and trace system” means the program for reporting the movement of cannabis
and cannabis products through the distribution chain established by the Department in
accordance with section 26067 of the Act.
(uuu) “Transport” means the physical movement of cannabis or cannabis products from
one licensed premises to another licensed premises.
(vvv) “Unique identifier” or “UID” means an alphanumeric code or designation used for
reference to a specific plant and any cannabis or cannabis product derived or
manufactured from that plant.
(www) “Universal symbol” means the symbol developed by the Department pursuant to
section 26130(c)(7) of the Act to indicate that a product contains cannabinoids.
(xxx) “Vehicle alarm system” is a device or series of devices installed to discourage theft
of the vehicle or its contents and is intended to summon general attention or to summon
law enforcement as a result of an indication of an attempted breach of the vehicle.
(yyy) “Volatile solvent” means any solvent that is or produces a flammable gas or vapor
that, when present in the air in sufficient quantities, will create explosive or ignitable
mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane,
and propane.
(zzz) "Watts per square foot” means the sum of the maximum wattage of all lights
identified in the designated canopy area(s) in the premises diagram divided by the sum
of the dimensions in square feet of the same designated canopy area(s).
(aaaa) “Wholesale cost” has the meaning stated in title 18, California Code of
Regulations, section 3700.
Authority: Section 26013, Business and Professions Code. Reference: Section 26013,
Business and Professions Code.
§15000.1. General Requirements.
(a) Every person who conducts commercial cannabis activity shall obtain and maintain a
valid license from the Department for each separate premises at which commercial
cannabis activity is conducted.
(b) Commercial cannabis activity shall only be conducted between licensees. Licensed
retailers and licensed microbusinesses authorized to engage in retail sales may conduct
commercial cannabis activity with customers or nonprofits in accordance with this
division.
(c) The licensee shall only conduct commercial cannabis activities authorized by the
license and on the premises licensed for the activity.
(d) All transfers of cannabis and cannabis product shall be conducted by a licensed
distributor.
(e) Licenses shall not be transferrable or assignable to another person or premises,
except as provided in section 26050.2 of the Business and Professions Code. In the
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 8 of 229
event of the sale or other transfer of the commercial cannabis business, changes in
ownership shall be made in accordance with section 15023.
(f) Applicants and licensees shall use their legal business name on all documents related
to commercial cannabis activity.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26053, 26057 and 26070, Business and Professions Code.
§15000.2. A- and M-Designations.
(a) Licensees may conduct business with other licensees irrespective of the A-
designation or M-designation on their licenses.
(b) Licensees authorized to engage in distribution shall only transport and sell cannabis
goods designated as “For Medical Use Only” to M-designated retailers or M-designated
microbusinesses authorized to engage in retail sales.
(c) Licensees authorized to engage in retail sales shall only sell cannabis goods
designated as “For Medical Use Only” to medicinal customers.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001,
26013, 26050 and 26053, Business and Professions Code.
§15000.3. Premises Requirements.
(a) A licensed premises shall not be in a location that requires persons to pass through a
business that sells alcohol or tobacco or a private residence to access the licensed
premises.
(b) A licensed premises shall not be in a location that requires persons to pass through
the licensed premises to access a business that sells alcohol or tobacco or a private
residence.
(c) A licensed premises shall not include the living areas of a private residence, such as
bathrooms, bedrooms, kitchens, and living rooms, unless living areas are required to be
included in the licensed premises. If the local jurisdiction requires living areas of a private
residence to be included in the licensed premises, licensees shall designate living areas
on their premises diagram as required by section 15006(k) but shall not conduct any
commercial cannabis activity within the designated living areas. Nothing in this section
shall prohibit a licensee from utilizing the living areas of a private residence for non-
commercial cannabis activity, such as staff breaks. Areas of a private residence that are
not considered to be living areas may include garages, offices, sheds, barns, and other
areas regularly used for commercial cannabis activity.
(d) Licensees shall ensure that the Department has immediate access to their licensed
premises. If the Department is denied access to a licensee’s premises for any reason,
the licensee shall be held responsible and subject to discipline. If the Department is
denied access to one licensee’s premises because of another licensee’s refusal to grant
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 9 of 229
access when the only access to one licensed premises is through another licensed
premises, all licensees shall be held responsible and subject to discipline.
(e) Nothing in this section shall be interpreted to prohibit two or more licensed premises
from occupying separate portions of the same parcel of land or sharing common use
areas, such as a bathroom, breakroom, hallway, or building entrance.
(f) All structures included as part of the licensed premises shall be permanent structures.
Structures that are considered permanent structures include, but are not limited to,
buildings, barns, sheds, shipping containers, and modular buildings. Structures that are
not considered to be permanent structures include, but are not limited to, structures that
rest on wheels or any structure that can be readily moved.
(g) Personal cultivation of cannabis as permitted by Health and Safety Code section
11362.1 shall not occur on the licensed premises unless the local jurisdiction requires
that all areas of the land parcel be included in the premises. If the local jurisdiction
requires all areas of the land parcel be included, then the licensee may conduct personal
cultivation in a separate and distinct area on the premises, which shall be identified on
the premises diagram pursuant to section 15006. “Separate and distinct,” for purposes of
this section, shall mean that the personally cultivated cannabis is cultivated, processed,
and stored in a manner that clearly identifies it as personally cultivated cannabis and
prevents it from coming into contact with commercially cultivated cannabis.
(h) Notwithstanding any other provision of law, a licensed premises that is not in
compliance with subsections (c) and (f) at the time this subsection becomes effective
shall come into compliance within six months of the effective date of this subsection by
submitting a premises modification in accordance with section 15027. Premises that
must be modified to comply with this subsection shall not be subject to the premises
modification fee specified in section 15014.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26050, 26051.5, 26054, 26055 and 26160, Business and Professions Code.
§15000.4. Subletting of Premises.
Except as allowed pursuant to article 2 of chapter 8, a licensee shall not sublet or allow
another person to conduct operations in any area designated as the licensed premises
for the licensee’s commercial cannabis activity.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26070, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 10 of 229
§15000.5. Licensee’s Responsibility for Acts of Employees and Agents.
In construing and enforcing the provisions of the Act and the regulations in this division,
the act, omission, or failure of an agent, officer, representative, or other person acting for
or employed by a licensee, within the scope of their employment or office, shall in every
case be deemed the act, omission, or failure of the licensee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26031
and 26110, Business and Professions Code.
§15000.6. Age Restriction.
Employees or persons retained by a licensee to work within or on a licensed premises or
to handle cannabis or cannabis products shall be at least 21 years of age.
Authority: Section 26013, Business and Professions Code. Reference: Section 26140,
Business and Professions Code.
§15000.7. Storage of Inventory.
(a) All cannabis and cannabis products must be stored within the licensed premises.
(b) A licensee shall not store cannabis goods outdoors.
(c) Bathrooms and changing facilities shall be separated from all storage areas by solid
walls that extend from the floor to the ceiling. Employee break areas, if any, shall be
separate and distinct from areas where cannabis and cannabis products are stored.
(d) Licensees may use additional shipping containers as temporary storage space on
their licensed premises when their storage needs exceed the capacity of their storage
space. Licensees using storage containers pursuant to this subsection shall notify the
Department of the premises modification in accordance with subsection (h) of section
15027.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26053 and 26070, Business and Professions Code.
Article 2. Applications
§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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 11 of 229
(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:
(1) Paying the license fee within 60 calendar days of the date the Department sends a
notification that the license fee is due.
(2) 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:
(1) 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.
(2) For an application for a license that includes cultivation activities, the applicant
provides any of the following documents:
(A) A final streambed alteration agreement;
(B) A draft streambed alteration agreement provided by the Department of Fish and
Wildlife and signed and returned to the Department of Fish and Wildlife;
(C) Written verification by the Department of Fish and Wildlife that a streambed alteration
agreement is not needed; or
(D) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 12 of 229
(3) 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:
(1) 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.
(2) 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.
(3) The commercial cannabis business provides any of the following documents:
(A) A final streambed alteration agreement;
(B) A draft streambed alteration agreement provided by the Department of Fish and
Wildlife and signed and returned to the Department of Fish and Wildlife;
(C) Written verification by the Department of Fish and Wildlife that a streambed alteration
agreement is not needed; or
(D) 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.
(4) 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:
(1) 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.
(2) For an application for a license that includes cultivation activities, the following
conditions are met:
(A) The local equity license applicant provides any of the following documents:
(i) A final streambed alteration agreement;
(ii) A draft streambed alteration agreement provided by the Department of Fish and
Wildlife and signed and returned to the Department of Fish and Wildlife;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 13 of 229
(iii) Written verification by the Department of Fish and Wildlife that a streambed alteration
agreement is not needed; or
(iv) 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.
(B) 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.
(C) 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.
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:
(1) 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:
(A) 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;
(B) 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;
(C) Documentation requested by the Department of the provisional licensee that
demonstrates the furtherance of environmental review during the previous 12-month
licensure term;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 14 of 229
(D) 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
(E) Documentation that demonstrates compliance with CEQA is complete.
(2) 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) A final streambed alteration agreement issued by the Department of Fish and
Wildlife;
(B) 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;
(C) 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
(D) 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:
(1) Documentation, such as a full or partial copy of the administrative record,
demonstrating that one of the following CEQA requirements has been met:
(A) The local jurisdiction has prepared and circulated for public review a negative
declaration or a mitigated negative declaration;
(B) 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;
(C) 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
(D) 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.
(E) Documentation submitted pursuant to subsection (c)(1) may include, but is not limited
to:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 15 of 229
(i) Any environmental documentation, including, but not limited to, an exemption, initial
study, negative declaration, mitigated negative declaration, and/or environmental impact
report;
(ii) Any staff reports and related documents prepared by the local jurisdiction;
(iii) Any written transcript or minutes of the proceedings of the local jurisdiction;
(iv) Any notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA
Guidelines;
(v) Any proposed decisions or findings considered by the local jurisdiction by its staff or
the applicant; and
(vi) Any documentation of the local jurisdiction’s final decision.
(2) 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:
(A) A final streambed alteration agreement issued by the Department of Fish and
Wildlife;
(B) 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
(C) 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:
(1) The State Water Resources Control Board has notified the Department that the
provisional licensee is not in compliance with section 26060.1(a) or (b) of the Business
and Professions Code or the principles, guidelines, and requirements established
pursuant to section 13149 of the Water Code.
(2) The Department of Fish and Wildlife has notified the Department that the provisional
licensee is not in compliance with any final streambed alteration agreement, any
conditions set forth in a signed draft streambed alteration agreement, or a condition
established pursuant to section 26060.1(a) or (b)(1) and (2) of the Business and
Professions Code.
(3) After January 1, 2023, if renewing the license would cause a licensee 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 section, premises will be considered contiguous if they are connected,
touching, or adjoining.
Authority: Section 26013, Business and Professions Code. Reference: Section 26050.2,
Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 16 of 229
§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:
(1) The nature and facts of each violation, including a reference to the statutory and/or
regulatory section(s) violated;
(2) The manner in which the provisional licensee must correct the violation(s) to achieve
compliance;
(3) That the Department is considering suspending, revoking, or denying the renewal of
the provisional license.
(4) 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.
(c) 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.
(a) 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.
(b) An order issued pursuant to subsection (a) shall be in writing and describe the
following:
(1) The nature and facts of each violation, including a reference to the statutory and/or
regulatory section(s) violated; and
(2) Whether the provisional license is suspended or the provisional licensee may
continue to operate subject to restrictions or other conditions.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 17 of 229
(c) 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.
(a) Applications may be completed and submitted online at www.cannabis.ca.gov.
(b) 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:
(1) Create a username, password, and security question and answer;
(2) Provide an email address; and
(3) 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.
(c) An application must be completed by an owner as defined by section 15003. An
application for an annual cannabis license includes the following:
(1) The legal first and last name of the applicant and the legal business name of the
commercial cannabis business.
(2) Every business trade name, fictitious business name, and doing business as (“DBA”)
under which the commercial cannabis business will operate.
(3) 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.
(4) Payment of an application fee pursuant to section 15014.
(5) 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.
(6) The mailing address for the commercial cannabis business, if different from the
premises address.
(7) The telephone number for the commercial cannabis business.
(8) The website address of the commercial cannabis business, if any.
(9) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 18 of 229
(10) 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.
(11) 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.
(12) 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.
(13) 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.
(14) 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.
(15) 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:
(A) 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.
(B) 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.
(16) 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:
(A) The full name of the owner.
(B) The owner’s title within the commercial cannabis business.
(C) The owner’s date of birth and place of birth.
(D) The owner’s Social Security number or individual taxpayer identification number.
(E) The owner’s mailing address.
(F) The owner’s telephone number. This may include a number for the owner’s home,
business, or mobile telephone.
(G) The owner’s email address.
(H) The owner’s current employer.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 19 of 229
(I) The percentage of the ownership interest held in the commercial cannabis business
by the owner.
(J) 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.
(K) A copy of the owner’s completed application for electronic fingerprint images
submitted to the Department of Justice.
(L) 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.
(M) 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.
(N) 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.
(17) Evidence that the commercial cannabis business has the legal right to occupy and
use the proposed location that complies with section 15007.
(18) 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.
(19) 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
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 20 of 229
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.
(20) 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.
(21) A diagram of the premises as required by section 15006.
(22) 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.
(23) Additional information as required by section 15011.
(24) 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.
(25) The limited waiver of sovereign immunity required by section 15009, if applicable.
(26) Evidence of exemption from, or compliance with, the California Environmental
Quality Act as required by section 15010.
(27) The commercial cannabis business’ State Employer Identification Number (SEIN)
issued by the California Employment Development Department, if applicable.
(28) 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.
(29) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 21 of 229
§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:
(1) 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.
(2) The license number for each state cannabis license held by the applicant.
(3) 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.
(4) The name of the temporary cannabis event.
(5) 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.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 22 of 229
(11) 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.
(12) 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:
(1) 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.
(2) An individual who manages, directs, or controls the operations of the commercial
cannabis business, including but not limited to:
(A) A member of the board of directors of a nonprofit.
(B) A general partner of a commercial cannabis business that is organized as a
partnership.
(C) A non-member manager or managing member of a commercial cannabis business
that is organized as a limited liability company.
(D) The trustee(s) and all persons who have control of the trust and/or the commercial
cannabis business that is held in trust.
(E) The chief executive officer, president or their equivalent, or an officer, director, vice
president, general manager or their equivalent.
(b) If the commercial cannabis business is owned in whole or in part by an entity and the
entity includes individuals who manage, direct, or control the operations of the
commercial cannabis business, as described in subsection (a)(2)(E), those individuals
shall also be disclosed as owners.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 23 of 229
(c) If available evidence indicates that an individual qualifies as an owner, the
Department may notify the applicant or licensee that they must either disclose the
individual as an owner and submit the information required by section 15002 or
demonstrate that the individual does not qualify as an owner.
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):
(1) A person with an aggregate ownership interest of less than 20 percent.
(2) A person providing a loan to the commercial cannabis business.
(3) A person entitled to receive 10 percent or more of the profits of the commercial
cannabis business, including:
(A) An employee who has entered into a profit share plan with the commercial cannabis
business.
(B) A landlord who has entered into a lease agreement with the commercial cannabis
business for a share of the profits.
(C) A consultant who is providing services to the commercial cannabis business for a
share of the profits.
(D) A person acting as an agent, such as an accountant or attorney, for the commercial
cannabis business for a share of the profits.
(E) A broker who is engaging in activities for the commercial cannabis business for a
share of the profits.
(F) A salesperson who earns a commission.
(G) 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:
(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 interest, lien, or encumbrance on
property that will be used by the commercial cannabis business; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 24 of 229
(4) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 25 of 229
§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:
(1) All roads and water crossings on the property.
(2) 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.
(3) 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
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 26 of 229
on the premises diagram with locations also provided as geographic coordinates in either
latitude and longitude or the California Coordinate System:
(A) Sources of water used, including the location of waterbody diversions(s), pump
locations(s), and distribution system; and
(B) Location, type, and capacity of each water storage unit to be used for cultivation.
(4) The assessor’s parcel number(s).
(5) For applicants for a Specialty Cottage, Specialty, Small, and Medium, and Large
license:
(A) 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;
(B) 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;
(C) Designated pesticide and other agricultural chemical storage area(s);
(D) Designated processing area(s) if the licensee will process onsite. This area may not
be shared among multiple licenses held by one licensee;
(E) Designated packaging area(s) if the licensee will package products onsite. 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 onsite;
(G) Designated secured area(s) for cannabis waste if different from subsection (F)
above.
(H) Designated area(s) for harvested cannabis storage. This area may not be shared
among multiple licenses held by one licensee.
(I) 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
(J) Common use area(s), such as hallways, bathrooms, and breakrooms. This area may
be shared by multiple licensees.
(6) For indoor and Mixed-light license type applications, a lighting diagram with the
following information must be included:
(A) Location of all lights in the canopy area(s); and
(B) Maximum wattage, or wattage equivalent, of each light.
(7) For applicants for a nursery license:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 27 of 229
(A) Designated pesticide and other agricultural chemical storage area(s);
(B) Designated composting area(s) if the licensee will compost cannabis waste onsite;
(C) Designated secured area(s) for cannabis waste if different from subsection (B)
above;
(D) At least one of the following areas:
(i) Area(s) that shall contain only immature plants; or
(ii) Designated seed production area(s) that may contain mature plants; and
(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.
(8) For applicants for a processor license:
(A) Designated processing area(s);
(B) Designated packaging area(s), if the licensee will package and label products onsite;
(C) Designated composting area(s) if the licensee will compost cannabis waste onsite;
(D) Designated secured area(s) for cannabis waste if different from subsection (C)
above; and
(E) Designated area(s) for harvested cannabis storage.
(i) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 28 of 229
(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:
(1) 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;
(2) 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;
(3) 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;
(4) Provide any and all records, reports, and other documents as may be required under
the state laws and regulations governing commercial cannabis activity;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 29 of 229
(5) Conduct commercial cannabis activity with other state commercial cannabis licensees
only, unless otherwise specified by state law;
(6) 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
(7) 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:
(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 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:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 30 of 229
(A) Environmental documentation, including, but not limited to, exemptions, initial studies,
negative declarations, mitigated negative declarations, and environmental impact reports;
(B) Staff reports and related documents prepared by the local jurisdiction;
(C) Transcripts or minutes of the proceedings of the local jurisdiction;
(D) Notice(s) issued by the local jurisdiction to comply with CEQA and the CEQA
Guidelines;
(E) Proposed decisions or findings considered by the local jurisdiction by its staff or the
commercial cannabis business; and
(F) Documentation of the local jurisdiction’s final decision.
(2) 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:
(A) The project location and surrounding land use, which shall:
(i) 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.
(ii) Describe the surrounding land uses and zoning designations within a one-half mile
radius of the project and list all abutting land uses.
(iii) Include a vicinity map and aerial image to show the project location.
(iv) Include photographs, not larger than 8.5 by 11 inches, of existing visual conditions as
observed from publicly accessible vantage point(s).
(B) A project description, which shall:
(i) Describe the activities included in the project application and identify any other
commercial cannabis activity or activities occurring at the proposed premises.
(ii) Quantify the project size (total floor area of the project), and the lot size on which the
project is located, in square feet.
(iii) 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.
(iv) 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.
(v) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 31 of 229
(C) The environmental setting, which shall:
(i) Describe natural characteristics (e.g., topography, vegetation, drainage, soil stability,
habitat, etc.) on the project site.
(ii) 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.
(iii) 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.
(iv) Identify whether the property contains natural features of scenic value or rare or
unique characteristics (e.g., rock outcroppings, mature trees).
(v) Identify whether the property has any historic designations or archeological remains
onsite.
(vi) Identify whether the property contains habitat(s) for special status species.
(vii) 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.
(viii) 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.
(ix) 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.
(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:
(1) 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.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 32 of 229
(2) 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.
(3) 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.
(4) 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.
(5) 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.
(6) A proposed cultivation plan that complies with the requirements in section 16309.
(7) Identification of all water sources used for cultivation activities as required in section
16311.
(8) 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.
(9) 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.
(10) An attestation that the local fire department has been notified of the cultivation site if
the application is for an indoor license type.
(11) 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.
(12) 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:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 33 of 229
(1) The type(s) of activity that will be conducted at the proposed licensed premises
(extraction, infusion, packaging, or labeling).
(2) The types of products that will be manufactured, packaged, or labeled at the
premises, including a product list.
(3) The name, title, email address, and phone number of the onsite individual who
manages the operation of the premises.
(4) The name, title, email address, and phone number of an alternate contact person for
the premises, if applicable.
(5) The number of employees at the premises.
(6) 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.
(7) 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.
(8) 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.
(9) 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.
(10) 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.
(11) A copy of the signed closed-loop system certification required pursuant to section
17206.1, if applicable.
(12) 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.
(13) Applications for a Type S manufacturing license shall:
(A) Be submitted in accordance with section 15002;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 34 of 229
(B) Include the license number and address of the registered shared-use facility at which
the commercial cannabis business will conduct manufacturing operations;
(C) Include a copy of the use agreement signed by both the Type S applicant and the
primary licensee; and
(D) 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.
(E) 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.
(F) A Type S licensee may conduct the following operational activities:
(i) Infusions, as defined in section 15000(ee);
(ii) Packaging and labeling of cannabis products; and
(iii) 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:
(1) Standard Operating Procedures, Form DCC-LIC-019 (New 2/22), incorporated herein
by reference.
(2) Proof of compliance with the insurance requirements in section 15308.
(3) 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:
(1) Standard Operating Procedures, Form DCC-LIC-019 (New 2/22).
(2) Delivery employee information required by section 15415.
(3) 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:
(1) The certificate(s) of accreditation required by sections 15701 and 15702, or the
information required for an interim license required by section 15703.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 35 of 229
(2) Upon the request by the Department, Standard Operating Procedures, Form DCC-
LIC-019 (New 2/22).
(3) 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
licensi[email protected]a.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,
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 36 of 229
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.
Article 3. Licensing
§15014. Fees.
(a) The application fee for an annual license under section 15002, a cannabis event
organizer license under section 15600, a temporary cannabis event license under section
15601 for each event, and physical modification of the premises under section 15027
shall be paid by an applicant or licensee as provided by this division. Applicants and
licensees shall pay the appropriate fee as outlined in this section.
Application Fee Schedule
License Type
Fee Per
Application
Testing Laboratory, Distributor, Retailer, Microbusiness Annual
Licenses
$1,000
Cannabis Event Organizer License
$1,000
Temporary Cannabis Event License
$1,000
Physical Modification of Premises for Testing Laboratory,
Distributor, Retailer, Microbusiness, and Manufacturing Licenses
$500
Type 6, 7, N, or P Annual Manufacturing Licenses
$1,000
Type S Annual Manufacturing License
$500
Cultivation Annual Licenses
See (f)
(b) The annual licensing fee for each license shall be paid by an applicant after the
Department has approved the application. The renewal license fee shall be paid by the
licensee as required by section 15020. The Department shall not issue the license until
the annual licensing fee has been paid.
(c) To determine the appropriate annual license fee due for testing laboratory, distributor,
retailer, and microbusiness license types, the applicant or licensee shall first estimate the
gross revenue for the 12-month license period. Based on the license type sought, the
applicant or licensee shall identify the appropriate tier category in which their expected
gross revenue belongs, as identified in the Annual License Fee Schedule charts found in
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 37 of 229
this section. The license fee associated with the licensing tier category the applicant or
licensee has identified using their expected gross revenue shall be the license fee due
for the original license or renewal. The following are the annual license fees due for these
license types to be paid prior to issuance of a license or renewed license:
Annual License Fee Schedule for Testing Laboratory (Type 8)
Annual License Fee Schedule for Distributor (Type 11 or 13), unless only engaging
in transport only self-distribution
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $160,000
$3,000
More than $160,000 and less or equal to $320,000
$6,000
More than $320,000 and less or equal to $480,000
$8,000
More than $480,000 and less or equal to $800,000
$13,000
More than $800,000 and less or equal to $1.2 million
$20,000
More than $1.2 million and less or equal to $2.0 million
$32,000
More than $2.0 million and less or equal to $2.8 million
$48,000
More than $2.8 million and less or equal to $4.4 million
$72,000
More than $4.4 million
$112,000
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $1.0 million
$1,500
More than $1.0 million and less or equal to $2.5 million
$6,000
More than $2.5 million and less or equal to $5.0 million
$11,250
More than $5.0 million and less or equal to $10.0 million
$22,500
More than $10.0 million and less or equal to $20.0 million
$45,000
More than $20.0 million and less or equal to $30.0 million
$75,000
More than $30.0 million and less or equal to $50.0 million
$120,000
More than $50.0 million and less or equal to $70.0 million
$180,000
More than $70.0 million
$240,000
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 38 of 229
Annual License Fee Schedule for Distributor Transport Only Self-Distribution
(Type 13)
Annual License Fee Schedule for Retailer (Type 9 or 10)
Annual License Fee Schedule for Microbusiness (Type 12)
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $1.0 million
$5,000
More than $1.0 and less or equal to $2.0 million
$12,000
More than $2.0 and less or equal to $3.0 million
$20,000
More than $3.0 and less or equal to $4.0 million
$32,000
More than $4.0 and less or equal to $6.0 million
$45,000
More than $6.0 and less or equal to $7.0 million
$60,000
More than $7.0 and less or equal to $10.0 million
$80,000
More than $10.0 and less or equal to $20.0 million
$100,000
More than $20.0 and less or equal to $30.0 million
$120,000
More than $30.0 and less or equal to $40.0 million
$140,000
More than $40.0 and less or equal to $50.0 million
$160,000
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $1,000
$200
More than $1,000 and less or equal to $3,000
$500
More than $3,000
$1,000
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $500,000
$2,500
More than $500,000 and less or equal to $750,000
$5,500
More than $750,000 and less or equal to $1.0 million
$7,500
More than $1.0 million and less or equal to $1.5 million
$11,000
More than $1.5 million and less or equal to $2.0 million
$14,500
More than $2.0 million and less or equal to $3.0 million
$22,500
More than $3.0 million and less or equal to $4.0 million
$30,500
More than $4.0 million and less or equal to $5.0 million
$38,500
More than $5.0 million and less or equal to $6.0 million
$46,500
More than $6.0 million and less or equal to $7.5 million
$57,000
More than $7.5 million
$96,000
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 39 of 229
Gross Revenue ($ Max. Per License)
Fee Per License
More than $50.0 and less or equal to $60.0 million
$180,000
More than $60.0 and less than or equal to $80.0 million
$220,000
More than $80 million
$300,000
(d) The annual license fee for a cannabis event organizer license shall be based on the
number of planned operations during the license period as indicated in the chart below.
Annual License Fee Schedule for Cannabis Event Organizers
Planned Operations (Number of Operations)
Fee Per License
0-5 events annually
$3,000
6-10 events annually
$5,000
11-20 events annually
$9,000
Greater than 20 events annually
$20,000
(e) The annual license fee for a manufacturer license shall be based on gross revenue as
indicated in the chart below.
(1) The applicant shall calculate the gross annual revenue for the licensed premises
based on the annual gross sales of cannabis products and, if applicable, the annual
revenue received from manufacturing, packaging, labeling or otherwise handling
cannabis or cannabis products for other licensees, in the 12 months preceding the date
of application.
(2) For a new license applicant, the gross annual revenue shall be based on the gross
sales and revenue expected during the first 12 months following licensure.
(3) For a manufacturer licensee that is also licensed as a distributor or retailer, and that
sells or transfers cannabis products manufactured on the licensed premises in a non-
arm’s length transaction, the annual gross sales or revenue for such transactions shall be
based on the product’s fair market value if it were to be sold in an arm’s length
transaction at wholesale.
(4) For purposes of this section, an “arm’s length transaction” means a sale entered into
in good faith and for valuable consideration that reflects the fair market value in the open
market between two informed and willing parties, neither under any compulsion to
participate in the transaction.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 40 of 229
Annual License Fee Schedule for Manufacturing (Type 6, 7, N, P, or S)
(f) The following are the application fees due for the specified annual cultivation license
types to be paid at the time the complete application is submitted to the Department:
Application Fee Schedule for Cultivation
License Type
Fee Per License
Specialty Cottage Outdoor
$135
Specialty Cottage Indoor
$205
Specialty Cottage Mixed-Light Tier 1
$340
Specialty Cottage Mixed-Light Tier 2
$580
Specialty Outdoor
$270
Specialty Indoor
$2,170
Specialty Mixed Light-Tier 1
$655
Specialty Mixed Light-Tier 2
$1,125
Small Outdoor
$535
Small Indoor
$3,935
Small Mixed-Light Tier 1
$1,310
Small Mixed-Light Tier 2
$2,250
Medium Outdoor
$1,555
Medium Indoor
$8,655
Medium Mixed-Light Tier 1
$2,885
Medium Mixed-Light Tier 2
$4,945
Nursery
$520
Processor
$1,040
Gross Revenue ($ Max. Per License)
Fee Per License
Less than or equal to $100,000
$2,000
More than $100,000 and less or equal to $500,000
$7,500
More than $500,000 and less or equal to $1.5 million
$15,000
More than $1.5 million and less or equal to $3.0 million
$25,000
More than $3.0 million and less or equal to $5.0 million
$35,000
More than $5.0 million and less or equal to $10 million
$50,000
More than $10 million
$75,000
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 41 of 229
(g) The following are the annual license fees due for the specified annual cultivation
license types to be paid prior to issuance of a license or renewal of a license:
Annual License Fee Schedule for Cultivation
License Type
Fee Per License
Specialty Cottage Outdoor
$1,205
Specialty Cottage Indoor
$1,830
Specialty Cottage Mixed-Light Tier 1
$3,035
Specialty Cottage Mixed-Light Tier 2
$5,200
Specialty Outdoor
$2,410
Specialty Indoor
$19,540
Specialty Mixed-Light Tier 1
$5,900
Specialty Mixed-Light Tier 2
$10,120
Small Outdoor
$4,820
Small Indoor
$35,410
Small Mixed-Light Tier 1
$11,800
Small Mixed-Light Tier 2
$20,235
Medium Outdoor
$13,990
Medium Indoor
$77,905
Medium Mixed-Light Tier 1
$25,970
Medium Mixed-Light Tier 2
$44,517
Nursery
$4,685
Processor
$9,370
(h) All fees are nonrefundable.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26051.5 and 26180, Business and Professions Code.
§ 15014.1. Equity Fee Relief.
(a) For the purposes of this section, the following definitions apply:
(1) “Qualified equity applicant or licensee” means a person who is an owner in a
commercial cannabis business pursuant to section 15003(a) and is either:
(A) A locally verified equity applicant or licensee in a jurisdiction with a local equity
program as defined in subsection (a)(2); or
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 42 of 229
(B) An applicant or licensee who qualifies for the fee waiver program under the
provisions of subsection (d).
(2) “Locally verified equity applicant or licensee” means an applicant or licensee that
satisfies the following conditions:
(A) The applicant or licensee has submitted an application to a local jurisdiction to
engage in commercial cannabis activity;
(B) The applicant or licensee's commercial cannabis operation is located within the
boundaries of that jurisdiction;
(C) The applicant or licensee meets the requirements of that jurisdiction's local equity
program; and
(D) The applicant or licensee has attested that they meet one of the criteria set in
subsection (d).
(b) Commercial cannabis businesses with at least one qualified equity applicant or
licensee shall be eligible for equity fee relief in the form of one fee waiver during each
calendar year and one fee deferral for each additional license during each calendar year
if they satisfy all of the following:
(1) The applicant or licensee has submitted a complete application for licensure, in
accordance with section 15002, or has satisfied the licensure renewal requirements of
section 15020.
(2) Only for fee waiver requests, the applicant or licensee expects a gross revenue less
than or equal to $5,000,000, or a licensee with a gross revenue less than or equal to
$5,000,000 and the applicant has submitted documentation demonstrating gross
revenue. Documentation demonstrating gross revenue may include, but is not limited to,
a copy of the licensee's state tax return filed with the California Department of Tax and
Fee Administration.
(3) The qualified equity applicant or licensee, either individually or in combination with
other qualified equity applicants or licensees, owns no less than 50 percent of the
commercial cannabis business that is applying for licensure or is licensed.
(4) The applicant or licensee has timely submitted a request for equity fee relief with the
information enumerated in subsections (c) and (d).
(A) To be eligible for a license fee waiver or deferral in the initial 12-month licensure
period, the qualified equity applicant must indicate on the application for commercial
cannabis license that they are also applying for equity fee relief from the Department.
(B) To be eligible for a license fee waiver or deferral at the time of renewal, the qualified
equity licensee must submit a request for equity fee relief at least 60 calendar days
before the expiration of the license. The Department will accept requests for equity fee
relief from qualified equity licensees who on the effective date of this section are less
than 60 days from the date of license expiration. The Department will provide a refund if
the Department determines the qualified equity licensee is eligible for a fee waiver or
deferral after the licensee has paid all annual licensing fees, subject to available funding.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 43 of 229
(c) To submit a request for equity fee relief, the qualified equity applicant or licensee shall
submit all of the following to the Department:
(1) A complete list of every qualified equity applicant or licensee which includes the
percentage of the aggregate ownership interest held by the qualified equity applicant or
licensee in the commercial cannabis business.
(2) Contact information for each qualified equity applicant or licensee of the commercial
cannabis business, including the name, title, phone number, and email address.
(3) Only for equity fee relief requestors that are locally verified equity applicants or
licensees in a jurisdiction with a local equity program, an attestation to the following
statement: Under penalty of perjury, I hereby declare that I am a locally verified equity
applicant or licensee. I further declare that I satisfy at least one of the criteria set forth in
California Code of Regulations, title 4, section 15014.1(d). I understand that the
Department may investigate the accuracy of these declarations, and that a
misrepresentation of fact is cause for rejection of this request for equity fee relief.
(4) An attestation that the qualified equity applicant or licensee, either individually or in
combination with other qualified equity applicants or licensees, own no less than 50
percent of the commercial cannabis business that is applying for licensure or is licensed.
(d) All applicants or licensees must satisfy at least one of the following criteria to be
granted a fee waiver or deferral. Qualified equity applicants or licensees that are locally
verified equity applicants may establish that they satisfy at least one of these criteria by
attestation, as set forth in subsection (c)(3). Qualified equity applicants or licensees that
are not locally verified in a jurisdiction with a local equity program must submit evidence
of at least one of the following for each equity applicant or licensee:
(1) The qualified equity applicant or licensee was convicted of an offense related to the
sale, possession, use, manufacture, or cultivation of cannabis, prior to November 8,
2016. Proof of conviction shall be demonstrated by copies of federal or state court
records indicating the disposition of the criminal matter; records reflecting the post-
conviction dismissal or expungement of a conviction, including records reflecting the
destruction of records under Health and Safety Code section 11361.5; or any other court
or law enforcement record that shows proof of conviction.
(2) The qualified equity applicant or licensee was arrested for an offense related to the
sale, possession, use, manufacture, or cultivation of cannabis, prior to November 8,
2016. Proof of arrest shall be demonstrated by copies of federal or state court records
indicating the disposition of the criminal matter, records of expungement documentation,
or any other law enforcement record that shows proof of arrest.
(3) The qualified equity applicant or licensee resides in a household with a household
income less than or equal to 60 percent of the area median income for the local
jurisdiction they reside, as reported in the most recent United States decennial or special
census.
(A) Proof of income shall be demonstrated by the qualified equity applicant or licensee
for each earner in their household using copies of at least one of the following records
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 44 of 229
with a residential address in the local jurisdiction, which is not a post office box, dated
within the last two years from the date of the request for equity fee relief:
(i) Individual federal tax returns, state tax returns, and W-2s;
(ii) At least two consecutive paystubs;
(iii) Proof of eligibility for a general assistance program that provides financial aid to
adults without sufficient income or resources, including but not limited to CalFresh,
MediCal/CalWORKS, supplemental security income, or social security disability.
(B) For the purposes of this subsection, “income” means the money income received in
the preceding calendar year using the income measurement defined by the U.S. Census
Bureau in their most recent United States decennial or special census.
(4) Proof that the qualified equity applicant or licensee resided for at least five years
between 1980 and 2016 in an area with a population that was disproportionately
impacted by past criminal justice policies implementing cannabis prohibition during their
period of residency and that they satisfy one of the following:
(A) The qualified equity applicant or licensee resided in a census tract that is among the
top 25 percent for civilian unemployment and poverty in the state based on the United
States Census Bureau's 2013-2017 American Community Survey; or
(B) The qualified equity applicant or licensee has an immediate family member who was
convicted or arrested of an offense related to the sale, possession, use, manufacture, or
cultivation of cannabis, prior to November 8, 2016.
(C) For the purposes of this subsection, the following definitions apply:
(i) “An area with a population that was disproportionately impacted by past criminal
justice policies implementing cannabis prohibition for at least five years” means a county
within California with a per capita drug related arrest rate higher than the state's per
capita drug related arrest rate between 1980 and 2016; these counties are: Alameda,
Alpine, Contra Costa, Del Norte, Fresno, Glenn, Humboldt, Imperial, Inyo, Kern, Lake,
Los Angeles, Mendocino, Merced, Riverside, Sacramento, San Bernardino, San Diego,
San Francisco, San Joaquin, Santa Cruz, Sierra, Solano, Stanislaus, Tehama, Trinity,
Tulare, Yolo, and Yuba.
(ii) “Immediate family member” means child, stepchild, parent, stepparent, brother, sister,
half-brother, half-sister, stepsibling, legal guardian, grandparent, or great grandparent.
(D) Proof of residence shall be demonstrated by providing copies of at least two of the
following records with a residential address in the local jurisdiction, which is not a post
office box:
(i) California Driver's License or State Identification Card;
(ii) Property tax billing or payment, or evidence that the qualified equity applicant or
licensee is otherwise exempt from property tax payment by law;
(iii) Signed residential lease agreement, or deed or title to residential real property;
(iv) Copies of state or federal tax returns;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 45 of 229
(v) School records;
(vi) Banking or credit card records;
(vii) Voter registration;
(viii) Credit reports;
(ix) Utility, cable, or internet billing or payment; or
(x) Vehicle titles or proof of vehicle registration.
(E) Proof of an immediate family member's conviction or arrest shall be demonstrated by
copies of federal or state court records indicating the disposition of the criminal matter;
records reflecting the post-conviction dismissal or expungement of a conviction, including
records reflecting the destruction of records under Health and Safety Code section
11361.5; or any other court or law enforcement record that shows proof of conviction or
arrest.
(F) Proof of immediate family member shall be demonstrated by copies of documentation
showing a familial relationship, including but not limited to, birth certificates or court
records.
(e) Incomplete requests for equity fee relief will be denied. The Department will notify the
applicant or licensee that the request for equity fee relief is denied and identify the
deficiencies which caused the denial. An applicant or licensee may resubmit subsequent
requests for equity fee relief after denial.
(f) The Department will process complete requests for equity fee relief in the order in
which the application or renewal for commercial cannabis licensure has been approved
by the Department. If a commercial cannabis business has submitted multiple requests
for fee waivers, the Department will grant only one fee waiver to the applicant or licensee
based on the first application or renewal for commercial cannabis licensure that has been
approved by the Department.
(g) Issuance of fee waivers by the Department shall be subject to available funding; thus,
all eligible applicants and licensees may not be granted a fee waiver. In the event that
insufficient funding is available to issue a fee waiver, the Department will grant a fee
deferral to qualified equity applicants and licensees.
(h) Fee deferrals granted by the Department shall be subject to the following conditions:
(1) All license fees must be paid in full no later than six months after the issuance or
renewal of the license.
(2) The licensee’s failure to pay the appropriate licensing fee as required by section
15014, will result in further action being taken by the Department, including, but not
limited to, denial of licensure renewal, suspension, or revocation of a license.
(3) No fee deferrals will be granted by the Department prior to January 1, 2023.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26051.5, 26180, and 26249, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 46 of 229
§ 15014.2. Fees. Large Cultivation License.
(a) Notwithstanding section 15014, the following are the application fees due for the
specified large cultivation license types to be paid at the time the complete application is
submitted to the Department:
Application Fee Schedule for Large Cultivation Licenses
Large License Type
Fee Per Application
Outdoor
$1,555
Mixed-light Tier 1
$2,885
Mixed-light Tier 2
$4,945
Indoor
$8,655
(b) Notwithstanding section 15014, the following are the annual license fees due for the
aggregate canopy size for the annual cultivation license to be paid prior to issuance of a
license, renewal of a license, or a converted license:
License Fee Schedule for Large Outdoor Cultivation
Canopy Size
Fees
Base Annual Fee
$13,990
Per 2,000 sq. ft. of Canopy over 1 acre
$640
License Fee Schedule for Large Mixed-light Tier 1 Cultivation
Canopy Size
Fees
Base Annual Fee
$25,970
Fee Per 2,000 sq. ft over 22,000 sq. ft.
$2,360
License Fee Schedule for Large Mixed-light Tier 2 Cultivation
Canopy Size
Fees
Base Annual Fee
$44,517
Fee Per 2,000 sq. ft over 22,000 sq. ft.
$4,040
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 47 of 229
License Fees Schedule for Large Indoor Cultivation
Canopy Size
Fees
Base Annual Fee
$77,905
Fee Per 2,000 sq. ft over 22,000 sq. ft.
$7,080
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26051.5, 26060, 26120 and 26180, Business and Professions Code.
§15015. Payment of Fees.
(a) Any fee specified in this division shall be paid to the Department of Cannabis Control
by cash, check, money order, debit card, or credit card. Check and money order payments
may be made out to the Department of Cannabis Control.
(b) If the fee is paid by debit or credit card:
(1) The payment shall be made through the Department’s online licensing system; and
(2) The applicant or licensee may be required to pay any associated processing or
convenience fees to the third-party vendor processing the payment on behalf of the
Department.
(c) Failure to pay the appropriate licensing fee is grounds for discipline. If the Department
determines that the licensee paid an amount less than the appropriate licensing fee
under section 15014, the licensee will be required to pay the balance of the appropriate
fee and a penalty fee of 50 percent of the appropriate licensing fee. The Department in
its discretion may waive the penalty fee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26051.5 and 26180, Business and Professions Code.
§15017. Substantially Related Offenses and Criteria for Rehabilitation.
(a) When evaluating whether an applicant or licensee has been convicted of a criminal
offense, act, or professional misconduct that is substantially related to the qualifications,
functions, or duties of the business for which the application is made, the Department
shall consider all of the following criteria:
(1) The nature and gravity of the offense;
(2) The number of years that have elapsed since the date of the offense; and
(3) The nature and duties of the particular license in which the applicant seeks licensure
or in which the licensee is licensed.
(b) For the purpose of denial, suspension, or revocation of a license, convictions that are
substantially related to the qualifications, functions, or duties of the business for which
the application is made include, but are not limited to:
(1) A violent felony conviction, as specified in Penal Code section 667.5(c).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 48 of 229
(2) A serious felony conviction, as specified in Penal Code section 1192.7(c).
(3) A felony conviction involving fraud, deceit, or embezzlement.
(4) A felony conviction for hiring, employing, or using a minor in transporting, carrying,
selling, giving away, preparing for sale, or peddling, any controlled substance to a minor;
or selling, offering to sell, furnishing, offering to furnish, administering, or giving any
controlled substance to a minor.
(5) A felony conviction for drug trafficking with enhancements pursuant to Health and
Safety Code section 11370.4 or 11379.8.
(c) For the purpose of denial of a license to engage in commercial cannabis
manufacturing, a conviction or violation from any jurisdiction that is substantially related
to the qualifications, functions, or duties of the business for which the application is made
include:
(1) A violation of section 110620, 110625, 110630, 110760, 110765, 110770, 110775,
111295, 111300, 111305, 111440, 111445, 111450, or 111455 of the Health and Safety
Code that resulted in suspension or revocation of a license, administrative penalty, civil
proceeding, or criminal conviction;
(2) A violation of Chapter 4 (sections 111950 through 112130) of Part 6 of Division 104 of
the Health and Safety Code that resulted in suspension or revocation of a license,
administrative penalty, civil proceeding, or criminal conviction;
(3) A conviction under section 382 or 383 of the Penal Code; and
(4) A violation identified in subsections (c)(1) or (c)(2) committed by a business entity in
which an owner was an officer or had an ownership interest.
(d) Except as provided in subsections (b)(4) and (b)(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 of 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 for denial of 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 a license.
(e) When evaluating whether an applicant who has been convicted of a criminal offense,
act, or professional misconduct 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 consider the following criteria of rehabilitation:
(1) The nature and gravity of the act, professional misconduct, or 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 was convicted of the
offense on the date of the person’s application;
(3) The applicant’s criminal record as a whole;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 49 of 229
(4) Evidence of any act, professional misconduct, or offense committed subsequent to
the act, professional misconduct, or 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, professional misconduct, 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 Penal Code sections 1203.4, 1203.4a,
1203.41, 1203.42, or pursuant to another state’s similar law;
(8) If applicable, evidence the applicant has been granted clemency or a pardon by a
state or federal executive;
(9) If applicable, a certificate of rehabilitation obtained under Penal Code section 4852.01
or another state’s similar law; and
(10) Other evidence of rehabilitation submitted by the applicant.
(f) If an applicant has been denied a license based on a conviction, the applicant may
request a hearing pursuant to Business and Professions Code section 26058 to
determine if the applicant should be issued a license.
(g) For the purpose of this section, “conviction” means a plea or verdict of guilty or a
conviction following a plea of nolo contendere.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
480, 481, 482, 26012 and 26057, Business and Professions Code.
§15018. Additional Grounds for Denial of a License.
In addition to the reasons for denial in Business and Professions Code section 26057, a
license may be denied for the following reasons:
(a) The applicant’s proposed premises does not fully comply with standards set in
regulation.
(b) The applicant’s proposed or licensed premises is substantially different from the
diagram of the proposed premises submitted by the applicant, in that the size, layout,
location of common entryways, doorways, or passage ways means of public entry or exit,
or identification of limited- access areas within the licensed premises is not the same.
(c) The applicant denied the Department access to the licensed premises or the property
identified in the application as the premises.
(d) The applicant made a material misrepresentation on the application.
(e) The applicant did not correct the deficiencies within the application in accordance with
sections 15002 and 15012.
(f) The applicant has been denied a license, permit, or other authorization to engage in
commercial cannabis activity by a state or local licensing authority.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 50 of 229
(g) The applicant’s proposed premises is not in compliance with Division 13
(commencing with Section 21000) of the Public Resources Code.
(h) The applicant has failed to remit taxes as required under the Revenue and Taxation
Code.
(i) The applicant may be denied a license for any violations of law related to the
operations of the commercial cannabis business or for any violations of law related to
licensure.
(j) The applicant has engaged in conduct that is grounds for disciplinary action specified
in section 26030 of the Act.
Authority: Section 26013, Business and Professions Code. Reference: Sections 480,
490, 26012, 26030 and 26050, Business and Professions Code.
§15019. Excessive Concentration.
(a) In determining whether to grant, deny, or renew a license for a retail premises or
microbusiness premises authorized to engage in retail sales, the Department shall
consider if an excessive concentration exists in the area where the licensee will operate.
For the purposes of this section “excessive concentration” applies when either of the
following conditions exist:
(1) The ratio of licensees to population within the census tract or census division in which
the applicant premises is located exceeds the ratio of licensees to population in the
county in which the applicant premises is located, unless denial of the application would
unduly limit the development of the legal market so as to perpetuate the illegal market for
cannabis goods.
(2) The ratio of retail licenses or microbusiness licenses to the population within the
census tract, census division, or jurisdiction exceeds that allowable by local ordinance
adopted under Business and Professions Code section 26200.
(b) “Population Within the Census Tract or Census Division” as used in this section
means the population as determined by the most recent United States decennial or
special census. Such population determination shall not operate to prevent an applicant
from establishing that an increase of resident population has occurred within the census
tract or census division.
(c) “Population in the County” as used in this section shall be determined by the most
recent annual population estimate for California counties published by the Demographic
Research Unit, State Department of Finance.
(d) Beginning July 1, 2018, the Department shall calculate the ratios described in
subsection (a) of this section once every six months using the most current available
data. The Department’s consideration of whether to grant, deny, or renew a license shall
be based upon the most recent ratio calculated by the Department on the date of the
Department’s decision.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 51 of 229
(e) The existence of an excessive concentration shall not be considered in determining
whether to grant, deny, or extend a temporary license under Business and Professions
Code section 26050.1.
(f) The applicant may provide reliable evidence establishing, to the satisfaction of the
Department, that a denial of a license would unduly limit the development of the legal
market so as to perpetuate the illegal market for cannabis goods.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26051, Business and Professions Code.
§15020. Renewal of License.
(a) To timely renew a license, a completed license renewal form and annual license fee
pursuant to section 15014 shall be received by the Department from the licensee no
earlier than 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.
(b) In the event the license is not submitted for renewal prior to the expiration date, the
licensee must not sell, transfer, transport, manufacture, test, or distribute any commercial
cannabis or cannabis products until the license is renewed.
(c) A licensee may submit a license renewal form up to 30 calendar days after the license
expires. Any late renewal form will be subject to a late fee equal to 50 percent of the
applicable licensing fee required by subsection (a). A licensee who does not submit a
complete license renewal application, including the late fee, to the Department within 30
calendar days after the expiration of the license shall forfeit their eligibility for a license
renewal and be required to submit a new license application.
(d) The license renewal form shall contain the following:
(1) The name of the licensee. For licensees who are individuals, the applicant shall
provide both the first and last name of the individual. For licensees who are business
entities, the licensee shall provide the legal business name of the commercial cannabis
business.
(2) The license number and expiration date.
(3) The licensee’s mailing address and licensed premises address.
(4) Documentation demonstrating the licensee’s gross revenue for the current licensed
period, such as a copy of the licensee’s state tax return filed with the California
Department of Tax and Fee Administration. This subsection does not apply to the
renewal of cultivation licenses.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 52 of 229
(5) Documentation of any change to any item listed in the original application under
section 15002 that has not been reported to the Department through another process
pursuant to the Act or this division.
(6) An attestation that all information provided to the Department in the license renewal
form and the original application under section 15002 or subsequent notification under
sections 15023 and 15024 is accurate and current.
(7) If applicable, a limited waiver of sovereign immunity pursuant to section 15009.
(8) For a licensee with more than one employee, the licensee shall attest that it employs,
or will employ within one year of renewing the license, one supervisor and one employee
who has 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.
(e) Beginning January 1, 2022, an application for renewal of a license to engage in
commercial cannabis cultivation 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 section
398.2(e) of the Public Utilities Code, and other onsite sources of generation not reported
to the local utility provider (e.g., generators, fuel cells) and the greenhouse gas emission
intensity from these sources; and
(4) Average weighted greenhouse gas emission intensity considering all electricity use in
subsections (e)(1)-(e)(3).
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26050, Business and Professions Code.
§15020.1. Cultivation License Limited Operations Status.
(a) Cultivation licensees may place a cultivation license, expiring on or after March 1,
2024, in Limited Operations Status as set forth in this section.
(b) “Limited Operations Status” means an inactive license status that allows a cultivation
licensee to do only the following:
(1) Engage in the drying, curing, grading, trimming, packaging, and sale of cannabis
harvested before the date the cultivation license was placed in Limited Operations
Status.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 53 of 229
(2) Possess and maintain seeds and immature plants used solely for propagation to
preserve the genetic lineage of the cultivation licensee’s cannabis plants.
(c) Mature plants are prohibited on the premises of a cultivation license in Limited
Operations Status. Any mature plants that have not been harvested before the date the
cultivation license was placed in Limited Operations Status shall be destroyed within 30
days.
(d) To place a cultivation license in Limited Operations Status, a cultivation licensee shall
do the following:
(1) Specify, on the license renewal form specified in section 15020(d) or the modified
renewal date request specified in section 15020.3(e), the request to place the cultivation
license in Limited Operations Status.
(2) Pay the Department 20 percent of the applicable annual license fee for the cultivation
licensee’s current license type as required by section 15014 or section 15014.2.
(3) Meet all other renewal requirements pursuant to sections 15001.2 and 15020, if
applicable.
(e) The Department shall verify that all requirements to place the cultivation license in
Limited Operations Status have been met. If all requirements have been met, the
Department shall notify the cultivation licensee in writing that the requirements for the
requested Limited Operations Status have been met.
(f) Limited Operations Status granted pursuant to this section shall remain in effect for
the duration of the license term. The cultivation licensee may request to place the
cultivation license in Limited Operations Status at each subsequent renewal.
(g) This section does not apply to any of the following:
(1) Nursery licenses.
(2) Processor licenses.
(h) Cultivation licenses that are changed to a Reduced-Size Cultivation License pursuant
to section 15020.2 shall not be placed in Limited Operations Status during the same
license term.
Authority: Section 26061.5, Business and Professions Code. Reference: Sections 26012,
26050 and 26061.5, Business and Professions Code.
§15020.2. Cultivation License Reductions in Size.
(a) Cultivation licensees may change an Original Cultivation License, expiring on or after
March 1, 2024, to a Reduced-Size Cultivation License as set forth in this section.
(b) The following definitions apply:
(1) “Original Cultivation License” means the provisional or annual cultivation license type
indicated on the license prior to any reduction in size pursuant to this section.
(2) “Reduced-Size Cultivation License” means a cultivation license type specified by the
cultivation licensee that satisfies both of the following:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 54 of 229
(A) The maximum canopy size of the cultivation license is smaller than the maximum
canopy size allowed by the cultivation licensee’s Original Cultivation License.
(B) The cultivation license uses the same type of lighting (i.e., Indoor, Outdoor, Mixed-
Light Tier 1, or Mixed-Light Tier 2) as the Original Cultivation License.
(c) To change an Original Cultivation License to a Reduced-Size Cultivation License, a
cultivation licensee shall do the following:
(1) Specify, on the license renewal form specified in section 15020(d) or the modified
renewal date request specified in section 15020.3(e), the request to change the Original
Cultivation License to a Reduced-Size Cultivation License. The request shall identify the
specific cultivation license type corresponding to the cultivation licensee’s requested
reduced canopy size.
(2) Submit an updated premises diagram that does all of the following:
(A) Satisfies the requirements of section 15006;
(B) Identifies the canopy area for the Original Cultivation License; and
(C) Identifies the canopy area for the requested Reduced-Size Cultivation License. This
canopy area shall be located within the canopy area of the Original Cultivation License.
(3) Pay the annual license fee applicable to the cultivation license type of the requested
Reduced-Size Cultivation License as required by section 15014 or section 15014.2.
(4) Meet all other renewal requirements pursuant to sections 15001.2 and 15020, if
applicable.
(d) The Department shall verify that all requirements for changing the cultivation license
type have been met. If all requirements have been met, the Department shall notify the
cultivation licensee in writing that the requirements for the change in cultivation license
type have been met.
(e) A Reduced-Size Cultivation License shall remain in effect for the duration of the
license term. At each subsequent renewal, the cultivation licensee may do any of the
following:
(1) Retain the Reduced-Size Cultivation License.
(2) Change to a different Reduced-Size Cultivation License.
(3) Restore the Original Cultivation License.
(f) A provisional cultivation licensee shall continue to actively and diligently pursue the
requirements for annual licensure, as required by section 15001(d). A provisional
cultivation licensee may pursue annual licensure for either the Original Cultivation
License or a Reduced-Size Cultivation License.
(1) A provisional cultivation licensee shall immediately notify the Department if it chooses
to pursue annual licensure for a Reduced-Size Cultivation License. Such notification shall
be submitted to the Department in writing by electronic mail to
licensechange@cannabis.ca.gov. The notification shall identify the name of the
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 55 of 229
provisional cultivation licensee, the Department-issued annual license application
number, and the annual license type the provisional cultivation licensee is pursuing.
(2) Notwithstanding subsection (b)(1), after the issuance of an annual cultivation license,
that license shall be considered the cultivation licensee’s Original Cultivation License for
purposes of this section.
(g) This section does not apply to any of the following:
(1) Nursery licenses.
(2) Processor licenses.
(h) Cultivation licenses placed in Limited Operations Status pursuant to section 15020.1
shall not be changed to a Reduced-Size Cultivation License during the same license
term.
Authority: Section 26061.5, Business and Professions Code. Reference: Sections 26012,
26050 and 26061.5, Business and Professions Code.
§15020.3. Modifying Cultivation License Renewal Date.
(a) A cultivation licensee may modify the renewal date of a cultivation license, as set forth
in this section.
(b) “Modified License Term” means the period of time that falls between submission of a
cultivation licensee’s request to modify a license date of renewal and the requested
modified license renewal date.
(c) “Original Renewal Date” means the scheduled date of renewal indicated on the
cultivation license, prior to any renewal date modification pursuant to this section.
(d) “Prorated Daily License Fee” means the prorated license fee for one calendar day,
which shall be calculated by dividing the applicable annual license fee by 365. The
applicable annual license fee shall be the license fee required by section 15014, section
15014.2, or section 15020.1(d)(2).
(e) To modify the renewal date of a cultivation license, the cultivation licensee shall
submit to the Department a request through the Department’s online licensing system or
submit a modified renewal date request form by electronic mail to
licensechange@cannabis.ca.gov, which shall include the following:
(1) The name of the cultivation licensee;
(2) The license number and current expiration date;
(3) A requested modified renewal date that is on or after the date of submission of all the
information required by this section to the Department;
(4) Whether the cultivation licensee requests to place the license in Limited Operations
Status pursuant to section 15020.1 or make a change in cultivation license size pursuant
to section 15020.2; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 56 of 229
(5) The name, phone number, email address, and signature of the designated primary
contact person or designated responsible party for the cultivation licensee submitting the
request.
(f) The Department shall verify that all requirements for modifying a cultivation license
renewal date have been met. If all requirements have been met, the Department shall
notify the cultivation licensee in writing that the requirements for the requested modified
renewal date have been met and shall disclose the fee the cultivation licensee must pay
for the Modified License Term or the amount that will be refunded by the Department.
(g) To determine the fee that must be paid for the Modified License Term or the amount
that will be refunded to the cultivation licensee by the Department, the Department shall:
(1) Determine the gross amount of any credit due from the Department to the cultivation
licensee. To determine this amount, the Department shall:
(A) Determine the Prorated Daily License Fee for the current cultivation license.
(B) Multiply that Prorated Daily License Fee by the number of days the current cultivation
license would have remained valid in the absence of any change to its renewal date,
counting from the date the cultivation licensee submitted a request pursuant to
subsection (e) until the Original Renewal Date.
(2) Determine the gross amount of the fee due from the cultivation licensee to the
Department for the Modified License Term. To determine this amount, the Department
shall:
(A) Determine the Prorated Daily License Fee for the cultivation license’s Modified
License Term.
(B) Multiply that Prorated Daily License fee by the number of days remaining on that
cultivation license, counting from the date the cultivation licensee submitted a request
pursuant to subsection(e) until the cultivation licensee’s requested modified license
renewal date.
(3) Determine the net difference between the gross amount of the credit due from the
Department to the cultivation licensee pursuant to subsection (g)(1) and the gross
amount of the fee due from the cultivation licensee to the Department pursuant to
subsection (g)(2).
(A) If the gross amount of the credit due pursuant to subsection (g)(1) exceeds the gross
amount of the fee due pursuant to subsection (g)(2), that net difference shall be refunded
to the cultivation licensee by the Department. Refunds issued by the Department shall
not exceed the license fee subject to the Modified License Term.
(B) If the gross amount of the credit due pursuant to subsection (g)(1) is less than the
gross amount of the fee due pursuant to subsection (g)(2), the cultivation licensee shall
pay that net difference to the Department. Payment shall be due within 30 calendar days
of the date of the notification from the Department required by subsection (f).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 57 of 229
(h) Notwithstanding section 15014.1(h)(1), cultivation licensees who have obtained a fee
deferral pursuant to section 15014.1 shall pay all license fees in full within six months of
the deferral being granted, or prior to the modified license renewal date, whichever is
sooner.
(i) A cultivation licensee may only modify the renewal date of a cultivation license
pursuant to this section once for each cultivation license.
Authority: Section 26061.5, Business and Professions Code. Reference: Sections 26012,
26050 and 26061.5, Business and Professions Code.
§15021. Denial of License.
(a) The Department may deny an application for a new license or a renewal of a license
for any reason specified in Business and Professions Code section 26057, and on any
additional grounds including grounds for denial under section 15018, and grounds for
discipline under the Act or this division.
(b) Upon denial of an application for a license or renewal of a license, the Department
shall notify the applicant in writing of the reasons for denial, and the right to a hearing to
contest the denial.
(c) The applicant may request a hearing to contest the denial by submitting a written
request to the Department at appeals@cannabis.ca.gov.
(1) The written request for a hearing must be received by the Department or postmarked
within 30 calendar days of service of the notification of denial.
(2) If the written request for a hearing is not received within the required timeframe, the
applicant’s right to a hearing is waived.
(3) Upon timely receipt of the written request for hearing, the Department shall set a date
for hearing to be conducted in accordance with chapter 5 (commencing with section
11500) of part 1 of division 3 of title 2 of the Government Code.
(d) If a license application is denied due to an owner’s conviction history, the Department
shall notify the applicant of the process for the owner to request a copy of their complete
conviction history and question the accuracy or completeness of the record pursuant to
Penal Code sections 11122 through 11127.
Authority: Section 26013, Business and Professions Code; Reference: Sections 26012,
26057 and 26058, Business and Professions Code.
§15023. Business Modifications.
Business modifications shall be made in accordance with the following:
(a) Changes to standard operating procedures may be made without providing
notification to the Department, except as required by the Act or this division. Licensees
shall maintain a copy of all current and prior operating procedures as required by section
15037.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 58 of 229
(b) If at the time of licensure, a licensee employed fewer than 20 employees and later
employs 20 or more employees, within 60 days of employing 20 or more employees, the
licensee shall provide to the Department a notarized statement that the licensee will
enter into a labor peace agreement and will abide by the terms of the 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.
(c) Licenses are not transferrable or assignable to another person or owner. In the event
of the sale or other transfer of the business or operations covered by the licensee,
changes in ownership shall be made in accordance with the following:
(1) If one or more of the owners change, the new owners shall submit the information
required under section 15002(c)(16) for each new owner to the Department within 14
calendar days of the effective date of the ownership change. The business may continue
to operate under the active license while the Department reviews the qualifications of the
new owner(s) in accordance with the Act and these regulations to determine whether the
change would constitute grounds for denial of the license, if at least one existing owner is
not transferring their ownership interest and will remain as an owner under the new
ownership structure. If all owners will be transferring their ownership interest, the
business shall not operate under the new ownership structure until a new license
application has been submitted to and approved by the Department, and all application
and license fees for the new application have been paid. The former owner’s inventory
shall be transferred to the new owner’s track and trace account upon issuance of the
license.
(A) A change in ownership occurs when a new person meets the definition of owner in
section 15003.
(B) A change in ownership does not occur when one or more owners leave the business
by transferring their ownership interest to the other existing owner(s).
(2) In cases where one or more owners leave the business by transferring their
ownership interest to the other existing owner(s), the owner or owners that are
transferring their interest shall provide a signed statement to the Department confirming
that they have transferred their interest within 14 calendar days of the change.
(d) When there is a change in financial interest holder(s) in the commercial cannabis
business who do not meet the requirements for a new license application under this
section, the licensee shall submit the information required by section 15002(c)(15) to the
Department within 14 calendar days of the change.
(e) When any of the following changes occur, the licensee shall notify the Department
within 14 calendar days of the change:
(1) Any change to contact information from the information provided to the Department in
the original application.
(2) Any change in name if the licensee is an individual, or any change in legal business
name if the licensee is a business entity.
(3) Any change in business trade names, fictitious business names, or doing business as
(“DBA”).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 59 of 229
(4) Any change in the bond required under section 15002(c)(22).
(f) Licensees may request to add an A-designation or M-designation to their license by
sending a notification to the Department signed by at least one owner as defined in
section 15003. A licensee shall not operate under the requested designation until they
have received approval from the Department.
(g) Microbusiness licensees may add a commercial cannabis activity to their license or
remove a commercial cannabis activity from their license if doing so is consistent with the
requirement set forth in section 15500(a) that licensees engage in at least three (3)
commercial cannabis activities. Licensees shall request the modification by completing a
request to modify the licensed premises pursuant to section 15027. A licensee shall not
engage in a new commercial cannabis activity until they have paid for the modification
and received approval from the Department.
(h) Except as permitted under Business and Professions Code section 26050.2(h),
licensees may not be transferred from one premises to another. Licensees shall not
operate out of a new premises until they have been issued a new license.
(i) For any business modification or notification under this section, licensees shall use
and submit to the Department the Licensee Notification and Request Form, Notifications
and Requests to Modify a License, DCC-LIC-027 (Amended 2/22), which is incorporated
herein by reference, unless the change relates to contact information and can be made
through the Department’s online system.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012,
Business and Professions Code.
§15024. Death, Incapacity, or Insolvency of a Licensee.
(a) In the event of the death, incapacity, receivership, assignment for the benefit of
creditors or other event rendering one or more owners incapable of performing the duties
associated with the license, the owner or owners’ successor in interest (e.g., appointed
guardian, executor, administrator, receiver, trustee, or assignee) shall notify the
Department in writing, within 14 calendar days, by submitting the Licensee Notification
and Request Form, Notifications and Requests to Modify a License, DCC-LIC-027
(Amended 2/22), which is incorporated herein by reference.
(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(s) 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(s) is incapable of performing the duties
associated with the license such as a death certificate or a court order, and
documentation demonstrating that the person making the request is the owner or owners’
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 60 of 229
successor in interest such as a court order appointing guardianship, receivership, or a
will or trust agreement.
(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:
(1) If the successor in interest or another person has applied for a license from the
Department for the licensed premises and that application is under review;
(2) If the successor in interest needs additional time to destroy or sell cannabis or
cannabis products; or
(3) At the discretion of the Department.
(d) The successor in interest is held subject to all terms and conditions under which a
state cannabis license is held pursuant to the Act.
(e) The approval creates no vested right to the issuance of a state cannabis license.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012,
Business and Professions Code.
§15024.1. Cannabis and Cannabis Products After Termination of License.
In the event a license is terminated for any reason while cannabis or cannabis products
remain on the premises, the following actions may be taken:
(a) The cannabis or cannabis products may be destroyed by the former licensee; or
(b) A licensed distributor or licensed microbusiness authorized to engage in distribution
may be authorized by the Department to procure and distribute the former licensee’s entire
inventory stock in accordance with the following;
(1) A licensed distributor or licensed microbusiness authorized to engage in distribution
shall, within 14 calendar days of the termination of the former licensee’s license, submit a
written request to the Department, on the Licensee Notification and Request Form,
Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-028 (New
2/22), which is incorporated by reference, for authorization to procure the cannabis or
cannabis products from the former licensee; and
(2) Upon approval from the Department, the licensed distributor or licensed
microbusiness authorized to engage in distribution shall transport the cannabis or
cannabis products as follows:
(A) Cannabis goods shall be transported to a licensed distribution premises where the
distributor shall arrange for laboratory testing and perform quality assurance in
accordance with chapter 2. If the cannabis goods have already been tested in
accordance with chapter 6 and have a valid certificate of analysis for regulatory
compliance testing that is less than 12 months old, the cannabis goods are not required
to undergo additional testing.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 61 of 229
(B) Cannabis that requires further processing as defined in section 15000(e), or further
manufacturing as defined in section 15000(pp), shall be transported to a licensee
licensed to conduct the additional processing or manufacturing.
(C) Cannabis or cannabis products that require packaging and labeling shall be
transported to a licensee licensed to conduct packaging and labeling of the cannabis or
cannabis products.
(D) Cannabis products that require further manufacturing as defined in section 15000(pp)
shall be transported to a licensed manufacturer.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5
and 26013, Business and Professions Code.
§15025. Additional Premises Requirements for Retailers and Microbusinesses
Authorized to Engage in Retail.
(a) Licensed retailers and licensed microbusinesses authorized to engage in retail sales
shall only serve customers who are within the licensed premises, or at a delivery address
that meets the requirements of this division.
(1) The sale and delivery of cannabis goods shall not occur through a pass-out window
or a slide-out tray to the exterior of the licensed premises.
(2) Licensed retailers or licensed microbusinesses authorized to engage in retail sales
shall not operate as or with a drive-in or drive-through at which cannabis goods are sold
to persons within or about a motor vehicle, except for curbside delivery conducted
pursuant to section 15404.
(b) Alcoholic beverages as defined in Business and Professions Code section 23004
shall not be stored or consumed on a licensed premises.
(c) Any licensed retailer or microbusiness authorized to conduct retail sales that is
adjacent to another premises engaging in manufacturing, cultivation, or distribution shall
be separated from those premises by solid walls that extend from floor to ceiling, and any
doors leading to the cultivation, distribution, or manufacturing premises shall remain
closed.
(d) Cannabis goods shall not be dispersed in the air throughout the premises or
throughout a portion of the premises by an oil diffuser or any other vaporizing device that
is intended to disperse the vapor throughout the premises or throughout a portion of the
premises. This section shall not be interpreted to prohibit cannabis goods consumption
on the premises of a licensed retailer or licensed microbusiness authorized to engage in
retail sales that is conducted in accordance with Business and Professions Code section
26200(g).
(e)Notwithstanding subsection (a), a commercial cannabis business may have a drive-in
or drive-through window only if, prior to June 1, 2018:
(1) The commercial cannabis business received a license or permit from the local
jurisdiction for a premises including a drive-in or drive-through window which was
disclosed on the local application; or
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 62 of 229
(2) The commercial cannabis business has submitted an application to the local jurisdiction
for a license or permit which, at the time of submission of the application, included
information that a drive-in or drive-through window was already part of, or proposed to be
part of, the premises, and after June 1, 2018, the local jurisdiction approves the premises
with a drive-in or drive-through window.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001,
26012 and 26053, Business and Professions Code.
§15027. Modification of Premises or Operations.
(a) A licensee shall not, without the prior written approval of the Department, make a
physical change, alteration, or modification of the licensed premises that materially or
substantially alters the licensed premises or the use of the licensed premises from the
premises diagram originally filed with the license application. A licensee whose licensed
premises is to be materially or substantially changed, modified, or altered is responsible
for filing a request for premises modification with the Department.
(b) Material or substantial changes, alterations, or modifications to a licensed cultivation
premises requiring prior approval from the Department are:
(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 storage areas for pesticides and other chemicals.
(2) Change in water or power source(s).
(3) Any increase or decrease in the total physical size or capacity of the licensed
premises.
(4) Any physical change that would require a building permit, zoning change, or other
approval from the applicable local jurisdiction.
(c) Material or substantial changes, alterations, or modifications to a licensed
manufacturing premises that require prior approval from the Department are:
(1) The addition of any ethanol, carbon dioxide, or volatile extraction method or extraction
unit.
(2) Any increase or decrease in the total physical size or capacity of the licensed
premises.
(3) Any physical change that would require the installation of additional video surveillance
cameras or a change in the video surveillance system to meet the requirements of
section 15044, or alarm system to meet the requirements of section 15047.
(4) Any physical change that would require a building permit, zoning change, or other
approval from the applicable local jurisdiction.
(d) Material or substantial changes, alterations, or modifications to a licensed
microbusiness premises that require prior approval from the Department are:
(1) The addition of a commercial cannabis activity pursuant to section 15500(h).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 63 of 229
(2) Any material or substantial changes, alterations, or modifications listed in subsections
(b), (c), or (e), as applicable to the licensed microbusiness’ commercial cannabis
activities.
(e) Material or substantial changes, alterations, or modifications to a licensed distribution,
retail, or testing laboratory premises that require prior approval from the Department
include, but are not limited to:
(1) Any increase or decrease in the total physical size or capacity of the licensed
premises.
(2) Any physical change that would require the installation of additional video surveillance
cameras or a change in the video surveillance system to meet the requirements of
section 15044, or alarm system to meet the requirements of section 15047.
(3) Any physical change that would require a building permit, zoning change, or other
approval from the applicable local jurisdiction.
(f) Licensees shall request approval of a physical change, alteration, or modification
through the online licensing system in writing, by submitting the Licensee Notification and
Request Form, Notifications and Requests to Modify a License, DCC-LIC-027 (Amended
2/22), which is incorporated herein by reference, and the request shall include:
(1) A new premises diagram that conforms to requirements in section 15006; and
(2) A fee pursuant to section 15014 for all licensees except licensed cultivators.
(g) A licensee shall provide additional documentation requested by the Department to
evaluate the licensee’s request to modify the licensed premises.
(h) Licensees shall notify the Department of all changes, alterations, or modifications to a
licensed premises or the licensee’s operations that do not require prior approval pursuant
to subsections (b), (c), (d), and (e) through the online licensing system or by submitting
the Licensee Notification and Request Form, Notifications and Request to Modify a
License, DCC-LIC-027 (Amended 2/22), which is incorporated herein by reference, and a
new premises diagram that conforms to requirements in section 15006. Notifications
pursuant to this subsection shall be submitted to the Department no later than three (3)
business days after the changes, alterations, or modifications have been made to the
licensed premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26055, Business and Professions Code.
§ 15027.1. Conversion to Large and Medium Cultivation Licenses.
(a) A licensee may convert existing cultivation licenses into a Large or Medium
Cultivation license if the following requirements are met:
(1) The location to be licensed consists of licensed or previously licensed cultivation
sites, as listed in section 16201. The licensee must have at least one active license
within the boundaries of the proposed premises at the time they request conversion.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 64 of 229
(2) The licenses to be converted are held by the same person(s) as the requested
converted Large or Medium Cultivation license.
(b) To obtain a conversion into a Large or Medium Cultivation license, an eligible
licensee shall submit to the Department the following information:
(1) The name of the Designated Responsible Party requesting the conversion.
(2) The license numbers of the current or previous cultivation licenses to be converted.
(3) The physical address(es) for the current or previous cultivation licenses to be
converted.
(4) A diagram of the proposed premises that meets the requirements of section 15006.
(5) A proposed cultivation plan that meets the requirements in section 16309.
(6) If the conversion necessitates additional review pursuant to CEQA (division 13
(commencing with section 21000) of the Public Resources Code); the licensee shall
provide evidence of compliance with CEQA in accordance with section 15010.
(7) The identities of all owners and financial interest holders, as defined in sections
15003 and 15004, for the converted license. The information for all owners required in
section 15002, subsection (c)(16) and all information required for financial interest
holders in section 15002, subsection (c)(15) shall be submitted to the Department by
entering the information into the appropriate fields within the Department’s licensing
system.
(c) The Department shall verify that all requirements for conversion have been met. If all
requirements have been met, the Department shall notify the licensee in writing that the
conversion requirements have been met and they may pay the applicable license fee
provided for in section 15014.2 or 15014. The fee associated with the converted license
shall be paid within 30 calendar days of the notification from the Department required by
this subsection. The converted license will become active on the date the fee associated
with the converted license is paid in full. If the licensee has been granted a fee deferral
pursuant to Business and Professions Code section 26249, the converted license will
become active on the date of the notification from the Department that all conversion
requirements have been met and the fee associated with the converted license shall be
paid in accordance with the provisions of the fee deferral.
(d) A conversion shall not be subject to an application fee.
(e) Notwithstanding sections 15014.2 and 15014, if time remains on any of the licenses
to be converted, the prorated value for each day remaining on each license approved for
conversion will be credited to the license fee amount for the converted license. The
amount credited shall not exceed the license fee for the converted license.
(f) At the time a converted Large or Medium Cultivation license becomes active, the
licenses that are converted or within the boundaries of the converted license shall be
cancelled by the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26013, 26050, 26055, 26060.1 and 26061, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 65 of 229
§15034. Significant Discrepancy in Inventory.
A significant discrepancy in inventory means a five percent difference between the
licensee’s physical inventory and the inventory recorded in the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15035. Notification of Criminal Acts, Civil Judgments, Violations of Labor
Standards, and Revocation of a Local License, Permit, or Other Authorization After
Licensure.
(a) A licensee shall ensure that the Department is notified in writing of a criminal
conviction of any owner, either by mail or electronic mail, within 48 hours of the
conviction. The written notification to the Department shall include the date of conviction,
the court docket number, the name of the court in which the licensee was convicted, and
the specific offense(s) for which the licensee was convicted.
(b) A licensee shall ensure that the Department is notified in writing of a civil penalty or
judgment rendered against the licensee or any owner in their individual capacity, either
by mail or electronic mail, within 48 hours of delivery of the verdict or entry of judgment,
whichever is sooner. The written notification shall include the date of verdict or entry of
judgment, the court docket number, the name of the court in which the matter was
adjudicated, and a description of the civil penalty or judgment rendered against the
licensee.
(c) A licensee shall ensure that the Department is notified in writing of an administrative
order or civil judgment for violations of labor standards against the licensee or any owner
in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of
the order. 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 judgment
rendered against the licensee.
(d) A licensee shall ensure that the Department is notified in writing of the revocation of a
local license, permit, or other authorization held by the licensee or any owner in their
individual capacity, either by mail or electronic mail, within 48 hours of receiving notice of
the revocation. The written notification shall include the name of the local agency
involved, a written explanation of the proceeding or enforcement action, and the specific
violation(s) that led to revocation.
(e) For any notification required under this section, licensees shall use and submit to the
Department the Licensee Notification and Request Form, Notifications and Requests to
Modify a License, DCC-LIC-027 (Amended 2/22), which is incorporated herein by
reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26030
and 26031, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 66 of 229
§15036. Notification of Theft, Loss, and Criminal Activity.
(a) A licensee shall notify the Department and local law enforcement within 24 hours of
discovery of any of the following situations:
(1) The licensee discovers a significant discrepancy, as defined in section 15034, in its
inventory.
(2) The licensee discovers diversion, theft, loss, or any other criminal activity pertaining
to the operations of the licensee.
(3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent
or employee of the licensee pertaining to the operations of the licensee.
(4) The licensee discovers loss or unauthorized alteration of records related to cannabis
or cannabis products, customers, or the licensee’s employees or agents.
(5) The licensee discovers any other breach of security.
(b) The notification to the Department pursuant to subsection (a) shall be submitted on
the Licensee Notification and Request Form, Notifications and Requests Regarding
Regulatory Compliance, DCC-LIC-028 (New 2/22), which is incorporated herein by
reference, and shall include the date and time of occurrence of the theft, loss, or criminal
activity, the name of the local law enforcement agency that was notified, and a
description of the incident including, where applicable, the item(s) that were taken or lost.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15037. General Record Retention Requirements.
(a) Licensees must keep and maintain records in connection with the licensed
commercial cannabis business. Records must be kept for at least seven years from the
date of creation, unless a shorter time is specified. Records include, but are not limited
to:
(1) Financial records including, but not limited to, bank statements, sales invoices,
receipts, tax records, and all records required by the California Department of Tax and
Fee Administration (formerly Board of Equalization) under title 18, California Code of
Regulations, sections 1698 and 4901.
(2) Personnel records, including each employee’s full name, Social Security number or
individual taxpayer identification number, date employment begins, and date of
termination of employment, if applicable.
(3) Training records including, but not limited to, the content of the training provided and
the names of the employees who received the training.
(4) Contracts regarding commercial cannabis activity.
(5) Permits, licenses, and other local authorizations to conduct the licensee’s commercial
cannabis activity.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 67 of 229
(6) All other documents prepared or executed by an owner or their employees or
assignees in connection with the licensed commercial cannabis business.
(7) Records required by the Act or this division.
(b) Records must be kept in a manner that allows the records to be produced for the
Department in either hard-copy or electronic form.
(c) Records must be legible and accurate. No person may intentionally misrepresent or
falsify records.
(d) Records must be stored in a secured area where the records are protected from
debris, moisture, contamination, hazardous waste, and theft.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26160
and 26161, Business and Professions Code.
§15037.1. Licensee Authorization to Release Data to Financial Institutions.
(a) A licensee may authorize the Department to provide information to a financial
institution for purposes of facilitating the provision of financial services. The authorization
shall be made in writing, through a form prescribed by the Department, which shall
include the following information:
(1) The name of the licensed business for which the licensee is authorizing the release of
information;
(2) The business’ license number(s);
(3) The financial institution authorized to receive information;
(4) The name, phone number, email address, and signature of the owner submitting the
authorization;
(5) The categories of information specified in subsection (b) that are authorized for
release; and
(6) An acknowledgement that the authorization to release information includes
information that is otherwise protected from disclosure, that the licensee is waiving
privilege and confidentiality, and that the scope of the release is strictly limited to the
purposes of disclosure to the financial institution.
(b) After receipt of the authorization, the Department shall release the following
information, as designated by the licensee, when requested by an authorized financial
institution pursuant to section 15037.2 of this division:
(1) The license application(s), including renewal applications, excluding information
required to be kept confidential pursuant to Penal Code section 11105 and confidential
personal information of individual owners of the licensed business;
(2) Information captured in the track-and-trace system established pursuant to Business
and Professions Code section 26067, including, but not limited to, aggregated sales or
transfer information, as applicable; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 68 of 229
(3) Documents issued to the licensee pursuant to disciplinary or enforcement
proceedings.
(c) A licensee may withdraw the authorization to provide information to a financial
institution at any time. The withdrawal shall be made in writing, through a form prescribed
by the Department, and shall include the following information:
(1) The name of the licensed business for which the licensee is withdrawing the
authorization of the release of information;
(2) The business’ license number(s);
(3) The financial institution from which authorization to receive information is withdrawn;
and
(4) The name, phone number, email address, and signature of the owner submitting the
withdrawal.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260,
Business and Professions Code.
§15037.2. Financial Institution Request for Licensee Information.
A financial institution, as defined in Business and Professions Code section 26260(c)(3),
may request information related to a licensee for purposes of facilitating the provision of
financial services for that licensee. The request shall be made in writing, through a form
prescribed by the Department, which shall include the following information:
(a) The name of the financial institution;
(b) The name, phone number, email, and signature of the representative of the financial
institution requesting information;
(c) The business name and license number of the licensee for which the financial
institution is requesting information;
(d) The type of financial services for which the information is requested (including, but not
limited to, establishment or maintenance of bank accounts, extending loans, and
providing insurance) and whether the request is for consideration of a new service or
maintenance of an existing service;
(e) The specific information requested as described in section 15037.1(b), if authorized
by the licensee; and
(f) An acknowledgment that use of the information is limited to that information which is
necessary for the provision of financial services.
Authority: Section 26013, Business and Professions Code. Reference: Section 26260,
Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 69 of 229
§15038. Disaster Relief.
(a) If a licensee is unable to comply with any licensing requirements due to a disaster,
the licensee may notify the Department of this inability to comply and request relief from
the specific licensing requirement.
(b) The Department may exercise its discretion to provide temporary relief from specific
regulatory requirements in this division and from other licensing requirements when
allowed by law.
(c) Temporary relief from specific licensing requirements shall be issued for a reasonable
amount of time in order to allow the licensee to recover from the disaster.
(d) The Department may require that certain conditions be followed in order for a
licensee to receive temporary relief from specific licensing requirements.
(e) A licensee shall not be subject to an enforcement action for a violation of a licensing
requirement during the time in which the licensee has received temporary relief and is in
compliance with any conditions of relief required by the Department.
(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 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.
(g) A licensed premises that has been vacated by a licensee due to a disaster shall not
be deemed to have been abandoned.
(h) Notwithstanding subsection (a), if a licensee needs to move cannabis or cannabis
products stored on the licensed premises to another location immediately to prevent loss,
theft, or degradation of the cannabis or cannabis products from the disaster, the licensee
may move the cannabis or cannabis products without obtaining prior approval from the
Department if the following conditions are met:
(1) The cannabis or cannabis products are moved to a secure location where access to
the cannabis or cannabis products can be restricted to the licensee, its employees, and
contractors;
(2) The licensee notifies the Department in writing that the cannabis or cannabis products
have been moved and that the licensee is requesting relief from complying with specific
licensing requirements pursuant to subsection (a) within 24 hours of moving the cannabis
or cannabis products;
(3) The licensee agrees to grant the Department access to the location where the
cannabis or cannabis products have been moved for inspection; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 70 of 229
(4) The licensee submits a request for temporary relief as described in subsection (i) in
writing to the Department within 14 calendar days of moving the cannabis or cannabis
products.
(i) Requests for temporary disaster relief shall include the following:
(1) Name of the licensed commercial cannabis business requesting relief.
(2) License number issued by the Department.
(3) Premises address.
(4) Contact information for the owner submitting the request, including name, phone
number, and email address.
(5) Date of request.
(6) Specific statutes and regulations from which relief is requested.
(7) Time period for which the relief is requested.
(8) Reason(s) for the request, including a clear explanation of how the relief requested is
tied to the specific circumstances of the declared disaster.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012,
Business and Professions Code.
Article 4. Posting and Advertising
§15039. License Posting Requirement.
(a) Upon issuance of license, the licensee shall prominently display the license on the
licensed premises where it can be viewed by state and local agencies. If the licensed
premises is open to the public, the license shall be displayed in an area that is within
plain sight of the public.
(b) Upon issuance of any license, a retailer, whose licensed premises is open to the
public, shall prominently display the Quick Response Code (QR Code) certificate issued
by the Department so that it can be viewed and scanned from outside of the licensed
premises.
(c) The QR Code certificate displayed by a licensee, as required by subsection (b), shall
be posted in the front window of the licensed premises within three (3) feet of any public
entrance to the licensed premises, or in a locked display case mounted on the outside
wall of the licensed premises within three (3) feet of any public entrance to the licensed
premises. The QR Code certificate shall be posted in a manner that is clearly visible from
outside of the licensed premises to the public and all persons entering the premises.
(d) The QR Code certificate displayed by the licensee as required by subsection (b) shall
comply with the following requirements:
(1) The QR Code certificate shall be printed on paper, glass, metal, or other material not
less than 8.5 inches by 11 inches.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 71 of 229
(2) The QR Code on the certificate posted, as required by this section, shall not be less
than 3.75 inches by 3.75 inches.
(3) The QR Code on the certificate shall be of sufficient clarity that the code can be read
by a smartphone or device capable of reading QR Codes from a distance of at least
three (3) feet.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26053, Business and Professions Code.
§15040. Advertising Placement and Prohibitions.
(a) Any advertising or marketing, as defined in Business and Professions Code section
26150, that is placed in broadcast, cable, radio, print, and digital communications:
(1) Shall only be displayed after a licensee has obtained reliable up-to-date audience
composition data demonstrating that at least 71.6 percent of the audience viewing the
advertising or marketing is reasonably expected to be 21 years of age or older;
(2) Shall not use any depictions or images of minors or anyone under 21 years of age;
(3) Shall not use any images that are attractive to children, including, but not limited to:
(A) Cartoons;
(B) Any likeness to images, characters, or phrases that are popularly used to advertise to
children;
(C) Any imitation of candy packaging or labeling; or
(D) The terms “candy” or “candies” or variants in spelling such as “kandy” or “kandeez.”
(4) Shall not advertise free cannabis goods or cannabis accessories. This includes
promotions such as:
(A) Buy one product, get one product free;
(B) Free product with any donation; and
(C) Contests, sweepstakes, or raffles.
(b) In addition to the requirements for advertising and marketing in subsection (a), all
outdoor signs, including billboards, shall:
(1) Be affixed to a building or permanent structure; and
(2) Comply with the provisions of the Outdoor Advertising Act, commencing with section
5200 of the Business and Professions Code, if applicable.
(c) For the purposes of this section, “reliable up-to-date audience composition data”
means data regarding the age and location demographics of the audience viewing a
particular advertising or marketing medium. “Reliable up-to-date audience composition
data” does not include data from the most recent United States decennial or special
census, or the annual population estimate for California counties published by the
Demographic Research Unit, State Department of Finance.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 72 of 229
(d) Immediately upon request, a licensee shall provide to the Department audience
composition data as required in subsection (a) for advertising or marketing placed by the
licensee.
(e) If the Department determines that audience composition data for advertising or
marketing provided by a licensee does not comply with the requirements of subsection
(a), or the licensee fails to provide audience composition data to the Department upon
request, the licensee shall remove the advertising or marketing placement in question.
(f) In construing and enforcing the advertising provisions of the Act and this division, any
action, omission, or failure of an advertising agent, representative, or contractor retained
by the licensee shall in every case be deemed the act, omission, or failure of the licensee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26151
and 26152, Business and Professions Code.
§15040.1. Marketing Cannabis Goods as Alcoholic Products.
Licensees shall not market, advertise, sell or transport cannabis goods that are labeled
as beer, wine, liquor, spirits, or any other term used to describe a type of alcohol or
alcoholic beverage that may create a misleading impression that the product is an
alcoholic beverage as defined in division 9 of the Business and Professions Code.
Nothing in this section shall be interpreted as prohibiting a company or brand name
associated with alcoholic beverages from appearing on cannabis goods or in marketing
and advertisements for cannabis goods provided the cannabis goods do not create a
misleading impression that the product is an alcoholic beverage.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26054,
26151 and 26152, Business and Professions Code.
§15040.2. Prohibited Business Promotions.
(a) A licensee shall not give away any amount of cannabis or cannabis products, or any
cannabis accessory, as part of a business promotion.
(b) A licensee shall not hold a raffle or sweepstakes as part of a business promotion.
Authority: Section 26013, Business and Professions Code. Reference: Section 26153,
Business and Professions Code.
§15041. Age Confirmation in Advertising.
(a) Prior to any advertising or marketing from the licensee involving direct, individualized
communication or dialogue, the licensee shall use age affirmation to verify that the
recipient is 21 years of age or older.
(b) For the purposes of this section, direct, individualized communication or dialogue may
occur through any form of communication, including in-person, telephone, physical mail,
or electronic.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 73 of 229
(c) A method of age verification is not necessary for a communication if the licensee can
verify that the licensee has previously had the intended recipient undergo a method of
age affirmation and the licensee is reasonably certain that the communication will only be
received by the intended recipient.
(d) A licensee shall use a method of age affirmation before having a potential customer
added to a mailing list, subscribe, or otherwise consent to receiving direct, individualized
communication or dialogue controlled by a licensee.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26151
and 26152, Business and Professions Code.
§15041.1. Branded Merchandise.
(a) “Branded merchandise” means non-consumable consumer goods utilized by a
licensee for advertising and marketing purposes. Examples of branded merchandise
include clothing, bags, pens, keychains, mugs, water bottles, lanyards, stickers, pins, and
posters. “Branded merchandise” does not include items containing cannabis or any items
that are considered food as defined by Health and Safety Code section 109935.
(b) Branded merchandise shall identify the licensee responsible for its content by
displaying the licensee’s license number in a manner that is permanently affixed to the
merchandise, legible, and clearly visible from the outside of the merchandise.
(c) Branded merchandise shall not be designed in any manner that is attractive to
children as specified in section 15040(a)(3).
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013
and 26152, Business and Professions Code.
§15041.2. Trade Samples.
(a) For the purposes of this division, “trade sample” means a limited amount of cannabis
or cannabis product that has been designated by a licensee to be provided to the
licensee’s employees or other licensees for the purposes of targeted advertising and
product education.
(b) Cannabis or cannabis products that have been designated as trade samples may be
provided from one licensee to another licensee for the purpose of providing the recipient
licensee with product information to aid in making purchasing decisions about new or
existing cannabis or cannabis products.
(c) Mature plants shall not be designated as trade samples. Immature plants, seeds and
propagated material shall only be designated or provided to licensees as trade samples
by licensed nurseries.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 74 of 229
§15041.3. Designating Trade Samples.
(a) Licensees shall designate cannabis and cannabis products as trade samples through
the track and trace system.
(b) At the time of designation as a trade sample, cannabis or cannabis products must be
in the possession of the licensee making the designation.
(c) Once cannabis or cannabis products have been designated as a trade sample, the
designation cannot be changed, unless the designation is changed to medicinal donation
pursuant to section 15411 by the licensee originally designating the cannabis or cannabis
products as a trade sample.
(d) After laboratory testing, cannabis and cannabis products that have been designated
as trade samples may be transferred to a licensee’s employees or other licensees in
accordance with section 15041.4.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
§15041.4. Providing Trade Samples.
(a) Cannabis or cannabis products that have been designated as trade samples may be
provided to any licensee except licensed cannabis event organizers, distributor transport
only licensees, and testing laboratory licensees.
(b) The following licensees may designate and provide trade samples to their own
employees and other licensees:
(1) Cultivators;
(2) Manufacturers;
(3) Distributors; and
(4) Microbusinesses authorized to engage in cultivation, manufacturing, or distribution.
(c) Notwithstanding subsection (b), licensed nurseries may only provide trade samples to
licensed cultivators and may not provide trade samples to their own employees.
(d) The following licenses shall not designate or provide trade samples to other
licensees:
(1) Retailers;
(2) Cannabis event organizers;
(3) Distributor transport only licensees; and
(4) Testing laboratories.
(e) Licensed retailers may designate and provide trade samples to their own employees
for product education but shall not provide them to another licensee as specified in
subsection (d).
(f) Cannabis and cannabis products designated as trade samples may not be provided:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 75 of 229
(1) For any payment or consideration;
(2) Without adhering to sales and excise tax requirements, if any;
(3) To employees as compensation;
(4) To an unlicensed person, including retail customers; or
(5) For a cost.
(g) The transfer from one licensee to another of cannabis and cannabis products
designated as a trade sample must be recorded in the track and trace system.
(h) A licensee may provide cannabis and cannabis products that have been received
from another licensee as a trade sample to an employee for that employee’s inspection
or consumption.
(i) Cannabis and cannabis products provided to employees as trade samples must be
properly recorded in the track and trace system. The transaction shall be recorded as a
package adjustment when provided to the employee. The adjustment note must include
the name or licensee-assigned employee number of the employee and the date and time
the cannabis and cannabis products were provided to the employee.
(j) Cannabis and cannabis products provided to employees as trade samples shall not be
sold, given away, or otherwise transferred by the employee to any person.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
§15041.5. Requirements for Trade Samples.
(a) In addition to the requirements of section 15041.3(d), cannabis and cannabis
products provided to another licensee as a trade sample must be packaged and labeled
in accordance with the packaging and labeling requirements found in the Act and this
division for cannabis and cannabis products sold at retail.
(b) Cannabis and cannabis products provided to another licensee as a trade sample
must comply with all laboratory testing requirements applicable to cannabis and cannabis
products sold at retail, except for immature plants, seeds, and propagated material.
(c) All trade samples must be labeled with the following: “TRADE SAMPLE. NOT FOR
RESALE OR DONATION.”
(d) After laboratory testing, cannabis and cannabis products designated as trade
samples must remain in the packaging until provided to a licensee’s employee for
inspection or consumption and must not be opened, resealed, or repackaged in any way.
(e) Transportation of cannabis and cannabis products designated as trade samples must
be conducted in accordance with the transportation requirements in the Act and this
division. Any licensee authorized to engage in distribution activities may transport trade
samples.
(f) Notwithstanding subsection (e), an employee of a licensee authorized to engage in
transportation may transport cannabis and cannabis products designated as trade
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 76 of 229
samples in a vehicle that is not registered to the licensee and shall not be required to
comply with the requirements of section 15311(g). Employees transporting cannabis and
cannabis products under this subsection shall not transport an amount of cannabis or
cannabis products that exceeds the possession limits established in section 11357 of the
Health and Safety Code.
(g) Licensees who receive immature plants, seeds, and propagated material as trade
samples shall not sell, give away, or distribute cannabis derived from the cultivated trade
sample.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
§15041.6. Consumption of Trade Samples.
(a) All consumption of cannabis and cannabis products provided as a trade sample must
comply with all laws regarding the consumption of cannabis and cannabis products.
(b) Cannabis and cannabis products provided to employees as trade samples shall not
be consumed by employees who are engaging in the transportation of cannabis and
cannabis products, delivery of cannabis and cannabis products, any activity that requires
the operation of a motor vehicle, or any activity that requires the use of heavy machinery,
solvents, or asphyxiants.
(c) Cannabis trade samples provided to a licensee or their employees that are not
consumed must be destroyed in accordance with the requirements of the Act and this
division.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
§15041.7. Trade Sample Limits.
(a) A licensee is limited to designating the following aggregate amounts of cannabis and
cannabis products as trade samples in a calendar month period:
(1) For cannabis in the form of dried flower, a total of two pounds.
(2) For manufactured and nonmanufactured cannabis products, a total of 900 individual
units.
(3) For seeds, immature plants, and other propagated material, 18 seeds, 12 seedlings,
and 8 cuttings or tissue cultures, per strain.
(b) Licensees authorized to provide trade samples may provide trade samples to multiple
employees or recipient licensees.
(c) A licensee is limited to providing the following aggregate amounts of cannabis and
cannabis products as trade samples to each recipient licensee in a calendar month
period:
(1) For cannabis in the form of dried flower, five (5) grams per strain and no more than
six (6) strains to each recipient licensee.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 77 of 229
(2) For manufactured and nonmanufactured cannabis products, five (5) individual units,
as packaged for retail sale, per cannabis product line and no more than six (6) individual
cannabis product lines to each recipient licensee.
(3) For seeds, immature plants, and other propagated material, no more than six (6)
strains to each recipient licensee.
(d) A licensee is limited to providing no more than one (1) individual cannabis and
cannabis product line to each recipient employee in a calendar month period.
(e) The limits provided in subsection (c) apply to the transfer of cannabis trade samples
from one licensee to each recipient licensee and do not limit the total amount of cannabis
trade samples that a licensed distributor may transport.
Authority: Sections 26013 and 26153.1, Business and Professions Code. Reference:
Section 26153.1, Business and Professions Code.
Article 5. Security Measures
§15042. Premises Access Requirements.
(a) For a premises that is not open to the public, the licensee shall establish and
implement an identification and sign-in/sign-out procedure for all persons accessing the
premises, including authorized individuals, suppliers, and visitors.
(b) Licensees shall ensure that only employees of the licensee and other authorized
individuals access the licensed premises.
(c) For the purpose of this section, “authorized individuals” include outside vendors,
contractors, or other individuals conducting business that requires access to the licensed
premises.
(d) An individual who enters the licensed premises and is not employed by the licensee
shall be escorted by an employee of the licensee at all times while within the licensed
premises.
(e) A licensee shall maintain a record of all authorized individuals who are not employees
of the licensee who enter the licensed premises. The record shall include the name of the
individual, the company the individual works for, the reason the individual entered the
licensed premises, the date, and the times the individual entered and exited the licensed
premises. These records shall be made available to the Department immediately upon
request.
(f) A licensee shall not receive consideration or compensation for permitting an individual
to enter the licensed premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 78 of 229
§15042.1. Security Plan for Licensed Manufacturers.
A licensed manufacturer shall develop and implement a written security plan. At a
minimum, the security plan shall include a description of the security measures to:
(a) Prevent access to the manufacturing premises by unauthorized persons and protect
the physical safety of employees. This includes, but is not limited to:
(1) Establishing physical barriers to secure perimeter access and all points of entry into a
manufacturing premises (such as locking primary entrances with commercial-grade, non-
residential door locks, providing fencing around the grounds and driveway, and securing
any secondary entrances including windows, roofs, and ventilation systems);
(2) Installing a security alarm system to notify and record incident(s) where physical
barriers have been breached;
(3) Establishing an identification and sign-in/sign-out procedure for authorized personnel,
individuals, suppliers, and visitors;
(4) Maintaining the premises such that visibility and security monitoring of the premises is
possible; and
(5) Establishing procedures for the investigation of suspicious activities.
(b) Deterring theft or loss of cannabis and cannabis products. This includes, but is not
limited to:
(1) Establishing an inventory system to track cannabis and cannabis products and the
personnel responsible for processing it throughout the manufacturing process;
(2) Limiting access of personnel within the premises to those areas necessary to
complete job duties, and to those timeframes specifically scheduled for completion of job
duties, including access by outside vendors, suppliers, contractors or other individuals
conducting business with the licensee that requires access to the premises;
(3) Supervising tasks or processes with high potential for diversion, including the loading
and unloading of cannabis and cannabis products from transportation vehicles; and
(4) Providing areas in which personnel may store and access personal items that are
separate from the manufacturing areas.
(c) Securing and backing up electronic records in a manner that prevents unauthorized
access and ensures that the integrity of the records is maintained.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26051.5, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 79 of 229
§15043. Licensee Employee Badge Requirement.
All agents, officers, or other persons acting for or employed by a licensee conducting
retail sales or participating in a temporary cannabis event shall display a laminated or
plastic-coated identification badge issued by the licensee at all times while engaging in
commercial cannabis activity. The identification badge shall, at a minimum, include the
licensee's “doing business as” name and license number, the employee's first name, an
employee number exclusively assigned to that employee for identification purposes, and
a color photograph of the employee that clearly shows the full front of the employee's
face and that is at least 1 inch in width and 1.5 inches in height.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26070, Business and Professions Code.
§15044. Video Surveillance System.
(a) Each licensed premises shall have a digital video surveillance system with a minimum
camera resolution of 1280 × 720 pixels on the licensed premises. This requirement does
not apply to a licensed premises authorized exclusively for cultivation activities or the
cultivation area of a licensed microbusiness premises.
(b) The video surveillance system shall at all times be able to effectively and clearly
record images of the area under surveillance.
(c) Each camera shall be permanently mounted and in a fixed location. Each camera
shall be placed in a location that allows the camera to clearly record activity occurring
within 20 feet of all points of entry and exit on the licensed premises, and allows for the
clear and certain identification of any person and activities in all areas required to be
filmed under subsection (d).
(d) Areas that shall be recorded on the video surveillance system include the following:
(1) Areas where cannabis or cannabis products are weighed, packed, stored, loaded,
and unloaded for transportation, prepared, or moved within the licensed premises;
(2) Limited-access areas;
(3) Security rooms;
(4) Areas storing a surveillance-system storage device with at least one camera
recording the access points to the secured surveillance recording area; and
(5) Entrances and exits to the licensed premises, which shall be recorded from both
indoor and outdoor vantage points.
(e) Licensed retailers and licensed microbusinesses authorized to engage in retail sales
shall also record point-of-sale areas and areas where cannabis goods are displayed for
sale on the video surveillance system. At each point-of-sale location, camera placement
must allow for the recording of the facial features of any person purchasing or selling
cannabis goods, or any person in the retail area, with sufficient clarity to determine
identity.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 80 of 229
(f) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames
per second (FPS).
(g) The physical media or storage device on which surveillance recordings are stored
shall be secured in a manner to protect the recording from tampering or theft.
(h) Surveillance recordings shall be kept for a minimum of 90 calendar days.
(i) Surveillance recordings are subject to inspection by the Department and shall be kept
in a manner that allows the Department to view and obtain copies of the recordings at the
licensed premises immediately upon request. The licensee shall also send or otherwise
provide copies of the recordings to the Department upon request within the time specified
by the Department.
(j) Recorded images shall clearly and accurately display the time and date. Time is to be
measured in accordance with the standards issued by the United States National Institute
of Standards and Technology. The displayed date and time shall not cover the view of
recorded images in a manner that prevents the ready identification of any person or activity
in the captured image.
(k) The video surveillance system shall be equipped with a failure notification system that
provides notification to the licensee of any interruption or failure of the video surveillance
system or video surveillance-system storage device.
(l) If multiple licensed premises are contained within the same building or on the same
parcel of land, a single video surveillance system covering the entire building or parcel of
land may be used by all of the licensees if all licensees have immediate access to the
surveillance recordings to produce them pursuant to subsection (i). All licensees sharing
a video surveillance system shall be held responsible and subject to discipline for any
violations of the video surveillance requirements.
(m) Notwithstanding subsection (a), a licensed distributor transport only licensee
engaged in self-distribution whose premises is on the same parcel of land as their
licensed cultivation premises shall not be required to comply with the provisions of this
section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§ 15045. Security Personnel.
(a) A licensed retailer or licensed microbusiness authorized to engage in retail sales shall
hire or contract for security personnel who are at least 21 years of age to provide onsite
security services for the licensed retail premises during the hours of operation. All
security personnel hired or contracted for by the licensee shall be licensed by the Bureau
of Security and Investigative Services and shall comply with chapters 11.4 and 11.5 of
division 3 of the Business and Professions Code.
(b) Notwithstanding subsection (a), a licensed non-storefront retailer or licensed
microbusiness who is not engaged in storefront retail sale is not required to hire or
contract for security personnel.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 81 of 229
(c) If multiple licensed premises are contained within the same building, security
personnel may be shared by all of the licensees to cover the entire building. However, all
licensees shall be held responsible and subject to discipline for any violations of the
security personnel requirements.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26070, Business and Professions Code.
§15046. Locks.
A licensee shall ensure that all limited-access areas can be securely locked using
commercial-grade, nonresidential door locks. A licensee shall also use commercial-
grade, nonresidential door locks on all points of entry and exit to the licensed premises.
This requirement does not apply to a licensed premises authorized exclusively for
cultivation activities or the cultivation area of a licensed microbusiness premises.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26070, Business and Professions Code.
§15047. Alarm System.
(a) A licensee shall maintain an alarm system as defined in Business and Professions
Code section 7590.1(c) at the licensed premises. This requirement does not apply to a
licensed premises authorized exclusively for cultivation activities or the cultivation area of
a licensed microbusiness premises.
(b) A licensee shall ensure a licensed alarm company operator or one or more of its
registered alarm agents installs, maintains, monitors, and responds to the alarm system.
(c) Upon request, a licensee shall make available to the Department all information
related to the alarm system, monitoring, and alarm activity.
(d) If multiple licensed premises are contained within the same building or parcel of land,
a single alarm system covering the entire building or parcel of land may be used by all of
the licensees if all licensees have access to and are able to provide the information
under subsection (c). All licensees shall be held responsible and subject to discipline for
any violations of the alarm system requirements.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 82 of 229
Article 6. Track and Trace Requirements
§15047.1. Definitions.
(a) “Plant tag” means the tag that is labeled with a UID number and provided by the
Department or the Department’s designee for attaching to a cannabis plant.
(b) “Package tag” means the RFID-enabled tag that is labeled with a UID number and
provided by the Department or the Department’s designee for attaching to batches of
cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070, 26160 and 26161, Business and Professions Code.
§15047.2. General Requirements.
(a) A licensee shall create and maintain an account within the track and trace system
prior to engaging in any commercial cannabis activity.
(b) All commercial cannabis activity shall be accurately recorded in the track and trace
system.
(c) A licensee is responsible for the accuracy and completeness of all data and
information entered into the track and trace system. The licensee is responsible for all
actions taken by the designated account manager or other account users while
performing track and trace activities.
(d) A person shall not intentionally misrepresent or falsify information entered into the
track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070, 26160 and 26161, Business and Professions Code.
§15048. Training and Credentialing.
(a) Each applicant or licensee shall identify an owner of the commercial cannabis
business as the track and trace system account manager. A licensee may change the
account manager by submitting a written request to the Department.
(b) No later than 10 calendar days after license issuance, the designated account
manager shall:
(1) Complete new user system training provided by the Department.
(2) Email support@metrc.com from the designated account manager's email address to
request access to the track and trace system.
(3) Complete the credentialing process to establish a login.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 83 of 229
(c) The account manager and each user shall utilize a unique login, consisting of a
username and password. The account manager and each user shall only access the
track and trace system under their assigned login. No account manager or user shall
share their login, username, or password, with any other individual for any reason.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26067, 26070, 26160 and 26161, Business and Professions Code.
§15048.1. Responsibilities of the Designated Account Manager.
(a) A licensee and their designated account manager(s) shall:
(1) Designate track and trace system users, as needed, and require the system users to
be trained in the proper and lawful use of the track and trace system before the users are
permitted to access the track and trace system;
(2) Maintain an accurate and complete list of all of the licensee's track and trace system
users, including full names and usernames, and update the list immediately when
changes occur;
(3) Remove a user from the licensee's track and trace system account when that
individual is no longer authorized to represent the licensee;
(4) Correct any data entry errors within three (3) calendar days of discovery of the error;
(5) Tag and enter all inventory in the track and trace system as required by section
15049;
(6) Monitor all system notifications and resolve all issues identified. The notification shall
not be dismissed by an account manager before resolution of the issue(s) identified in
the notification;
(7) Notify the Department of any loss of access to the track and trace system that
exceeds 72 hours; and
(8) Reconcile the inventory of cannabis and cannabis products on the licensed premises
with the track and trace system database at least once every thirty (30) calendar days.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26067, 26070 and 26160, Business and Professions Code.
§15048.2. General Tag Requirements.
(a) A licensee shall only use plant and package tags provided and distributed by the
Department or the Department’s designee.
(b) A licensee shall only use plant and package tags assigned in the track and trace
system to that licensee and shall not transfer unused tags to any other licensee.
(c) A licensee shall maintain a sufficient supply of tags to support tagging in accordance
with this chapter.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 84 of 229
(d) Plant and package tags shall be discarded after they are no longer required for use.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26050.1,
26067, 26070, 26160 and 26161, Business and Professions Code.
§15048.3. Ordering Tags.
(a) For licensees conducting cultivation, manufacturing, distribution, or testing:
(1) A licensee’s account manager shall place the initial order of plant or package tags
within ten (10) calendar days of initial credentialing into the track and trace system and
shall reorder plant or package tags as needed.
(2) The receipt of plant or package tags shall be recorded in the track and trace system
within three (3) calendar days of receipt. If ordered plant or package tags are not
received by the licensee, the licensee shall notify the Department.
(3) For cultivation licensees, if the Department approves a request for a license
designation change pursuant to section 15023(f), the licensee is required to order, apply,
and report applicable plant and package tags in accordance with this article.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26067, 26069 and 26160, Business and Professions Code.
§ 15048.4. Tagging of Cannabis Plants.
(a) Immature cannabis plants shall be tagged as follows:
(1) Each established lot of immature plants shall be assigned a plant tag. Each lot of
immature plants under a single plant tag shall be uniform in strain or cultivar and contain
no more than 100 individual immature plants at any one time. The lot plant tag shall be
visible and within clear view of an individual standing next to the immature lot and kept
free from dirt and debris. Each lot shall either:
(A) Have each immature plant in the lot labeled with the UID number and placed
contiguous to one another to facilitate identification by the Department; or
(B) Be fully separated from other lots of immature or mature plants by a physical barrier.
In such cases, each individual plant does not need to be labeled with the corresponding
UID number.
(2) Immature plants transferred from a licensed nursery for retail sale shall be transferred
in a package with a package tag. The receiving licensee shall remove the licensed
nursery's package tag and assign a plant or package tag, as applicable, belonging to the
receiving licensee within three (3) calendar days of receiving the immature plants.
(3) A plant tag shall be applied to each individual plant in accordance with subsection (b)
at the time the plant is moved to the designated canopy area or begins flowering.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 85 of 229
(b) Mature cannabis plants shall be tagged as follows:
(1) Each mature plant shall be tagged with a plant tag. A plant tag shall be attached to
the main stem at the base of each plant, placed in a position so it is visible and within
clear view of an individual standing next to the mature plant, and kept free from dirt and
debris.
(2) Licensees are prohibited from removing the plant tag from the mature plant to which it
was attached and assigned until the plant is harvested, destroyed, or disposed of.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26067 and 26069, Business and Professions Code.
§15048.5. Use of Harvest Batch Name and Package Tags.
(a) Harvested plants that are hanging, drying, or curing shall be assigned a unique
harvest batch name, which shall be recorded in the track and trace system and placed
within clear view of an individual standing next to the batch. The assigned harvest batch
name shall match what is in the track and trace system and the harvest batch name next
to the batch shall be the same.
(b) Each harvest batch and manufactured cannabis batch shall be assigned a package
tag and recorded in the track and trace system. For each harvest batch, the package tag
shall be assigned and recorded in the track and trace system no later than the time at
which any part of that harvest batch has finished undergoing any applicable drying,
curing, grading, and trimming.
(c) For all cannabis and cannabis products held in a container, the package tag shall be
affixed to the container holding the cannabis or cannabis products. If cannabis or
cannabis products are held in multiple containers, the package tag shall be affixed to one
of the containers and the other containers shall be labeled with the applicable UID
number. Each unit within the container shall be labeled with the applicable UID number.
All containers with the same UID number shall be placed contiguous to one another to
facilitate identification by the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070, 26160 and 26161, Business and Professions Code.
§15049. Track and Trace Reporting.
(a) All cannabis and cannabis products on the licensed premises shall be assigned a
plant or package tag, as applicable, except for harvested plants that are being dried,
cured, graded, or trimmed, as specified in this division, and recorded in the track and
trace system.
(b) Each of the following activities shall be recorded in the track and trace system within
24 hours of occurrence:
(1) Receipt of cannabis or cannabis products.
(2) Rejection of transferred cannabis or cannabis products.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 86 of 229
(3) Manufacturing of cannabis or cannabis products.
(4) Use of cannabis or cannabis product for internal quality control testing or product
research and development.
(5) Destruction or disposal of cannabis or cannabis products.
(6) Packaging or repackaging of cannabis or cannabis products, except that cultivation
licensees shall comply with section 15049.1(b)(5).
(7) Laboratory testing, including testing results.
(8) Sale or donation of cannabis or cannabis products.
(c) The following information shall be recorded in the track and trace system for each
activity entered pursuant to subsection (b):
(1) The type of cannabis or cannabis products.
(2) The weight, volume, or count of the cannabis or cannabis products.
(3) The date of activity.
(4) The UID assigned to the cannabis or cannabis products.
(5) The brand name of the cannabis goods.
(6) If cannabis or cannabis products are being destroyed or disposed of, the licensee
shall record the following information in the notes section:
(A) The name of the employee performing the destruction or disposal;
(B) The reason for destruction or disposal; and
(C) The method of disposal.
(d) If a package adjustment is used to adjust the quantity of cannabis or cannabis
products in the track and trace system, the licensee shall include a description explaining
the reason for adjustment.
(e) If a licensee rejects a partial shipment of cannabis goods pursuant to section
15052.1(b), the licensee shall record the partial rejection in the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26067 and 26169, Business and Professions Code.
§15049.1. Additional Requirements for Recording Cultivation Activities.
(a) The licensee shall record the following cultivation activities in the track and trace
system within three (3) calendar days of occurrence:
(1) Planting of an immature lot;
(2) Moving immature plants to a designated canopy area, flowering of an individual plant,
or application of a plant tag to an immature plant, in accordance with section 15048.4;
(3) Destruction or disposal of an immature or mature plant; and
(4) Harvesting of a mature plant, or portion thereof.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 87 of 229
(b) The following information shall be reported in the track and trace system for each
harvest batch:
(1) The wet weight of each harvest batch, which shall be obtained by the licensee
immediately after harvest;
(2) The weight of cannabis waste associated with each harvested plant;
(3) The unique name of the harvest batch; and
(4) The initiating date of the harvest. For purposes of this section, the “initiating date” of
the harvest is the month, day, and year the first mature cannabis plants in the harvest
batch were cut, picked, or removed from the soil or other growing media.
(c) After the entire harvest batch has been dried, trimmed, cured, and packaged, the
licensee shall indicate in the track and trace system that the harvest is finished.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26067 and 26069, Business and Professions Code.
§15049.2. Recording Transfers of Cannabis and Cannabis Products.
(a) A licensee shall prepare a shipping manifest through the track and trace system prior
to transferring cannabis and cannabis products off of a licensed premises. The following
information shall be recorded on the shipping manifest by the licensee initiating the
transfer:
(1) The name, license number, and premises address of the originating licensee;
(2) The name and license number of the distributor transporting the cannabis and
cannabis products;
(3) The name, license number, and premises address of the licensee receiving the
cannabis or cannabis products into inventory or storage;
(4) The UID numbers for all items being transferred;
(5) The item name, item category and weight or count of cannabis or cannabis products
associated with each package tag;
(6) The estimated date and time of departure from the licensed premises;
(7) The estimated date and time of arrival at each licensed premises; and
(8) The driver’s license number of the personnel transporting the cannabis and cannabis
products, and the make, model, and license plate number of the vehicle used for
transport.
(b) The distributor who transports the cannabis or cannabis product shall record the
following additional information on the shipping manifest:
(1) The actual date and time of departure from the licensed premises; and
(2) The actual date and time of arrival at each licensed premises.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 88 of 229
(c) Upon pick-up or receipt of cannabis and cannabis products for transport, storage, or
inventory, a licensee shall ensure that the cannabis or cannabis products received are as
described in the shipping manifest. The licensee shall record acceptance or receipt, and
acknowledgment of the cannabis or cannabis products in the track and trace system.
(d) If there are any discrepancies between type or quantity of cannabis or cannabis
products specified in the shipping manifest and the type or quantity received by the
licensee, the licensee shall reject the shipment.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070, 26160 and 26161, Business and Professions Code.
§15049.3. Track and Trace Requirements for Delivery.
(a) A licensed retailer conducting delivery of cannabis goods shall create a delivery
inventory ledger in the track and trace system and record the information required under
subsections (b)(1) through (7) prior to the delivery employee leaving the licensed retail
premises for each delivery trip. A delivery trip begins when the delivery employee leaves
the licensed retail premises to conduct delivery of cannabis goods.
(b) The delivery inventory ledger shall include the following information:
(1) The delivery inventory ledger number generated by the track and trace system and
assigned to the specific delivery trip.
(2) The name and license number of the licensed retailer.
(3) The delivery employee’s name, employee ID, and driver’s license number.
(4) The delivery vehicle’s make, model, and license plate number.
(5) The item name and category of each cannabis good to be carried on the delivery trip,
the UID(s) assigned to those cannabis goods, and the number of units associated with
each UID on the delivery inventory ledger.
(6) The UID(s) of any cannabis goods ordered by customers and processed by the
licensed retailer prior to the delivery employee leaving the licensed retail premises.
(7) The date and time the delivery employee begins the delivery trip.
(c) For each delivery of cannabis goods, the following information shall be recorded
within the track and trace system by the end of the calendar day on which the delivery
was completed:
(1) The date and time the delivery was completed. A delivery is completed at the time the
cannabis goods are physically provided to the customer.
(2) Whether the customer is an adult-use customer, medicinal cannabis patient, or
patient’s primary caregiver.
(3) The UID and quantity of each cannabis good delivered.
(4) The purchase price of each cannabis good delivered.
(5) The city, county, and zip code in which the delivery was completed.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 89 of 229
(d) If a delivery employee returns to the licensed retail premises to obtain additional
inventory of cannabis goods for delivery to be conducted on the same day and by the
same delivery employee, the licensed retailer may continue the existing delivery trip in
the track and trace system. If the licensed retailer chooses to continue the existing
delivery trip, the additional inventory is considered part of the existing delivery trip and a
new delivery inventory ledger is not required. The licensed retailer shall record the
following information within the track and trace system under the existing delivery
inventory ledger number for any additional cannabis goods to be carried on the same
delivery trip:
(1) The item name and category of each additional cannabis good to be carried on the
delivery trip, the UID(s) assigned to those cannabis goods, and the number of units
associated with each UID on the delivery inventory ledger.
(2) The date and time the delivery employee leaves the licensed retail premises to
continue the delivery trip.
(e)(1) The end date and time of the delivery trip shall be:
(A) Except as provided in subsection (e)(1)(B), the date and time the delivery employee
returned to the licensed retail premises after conducting all deliveries that are part of the
same delivery trip.
(B) If the delivery employee does not carry any unsold cannabis goods and does not
return to the licensed retail premises on the same day after delivering all cannabis goods
carried in the vehicle on the delivery trip, the date and time at which the delivery
employee completed the last delivery of cannabis goods on the delivery trip.
(2) No later than the end of the calendar day on which the delivery trip occurred:
(A) If a delivery employee still carries unsold cannabis goods at the end of a delivery trip,
the delivery employee must return to the licensed premises, remove the unsold cannabis
goods from the delivery inventory ledger, and return the unsold cannabis goods to the
licensed retailer’s inventory within the track and trace system.
(B) The licensed retailer shall record the end date and time of the delivery trip in the track
and trace system.
(f) Notwithstanding subsections (a) through (e), prior to April 1, 2023, licensed retailers
may comply with this section by maintaining delivery inventory ledgers in accordance
with this subsection.
(1) Delivery inventory ledgers may be maintained by licensed retailers in hard copy or
electronically and shall include the item name, category, UID, and unit quantity of each
cannabis good carried on a delivery trip.
(2) All cannabis goods prepared for an order that was received and processed by the
licensed retailer prior to the delivery employee’s departure from the licensed retail
premises must be clearly identified on the delivery inventory ledger.
(3) During a delivery trip, the delivery inventory ledger must be updated after each
completed delivery to reflect the remaining inventory carried by the delivery employee.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 90 of 229
(4) All sales of cannabis goods conducted by delivery must be entered into the track and
trace system within 24 hours of the date and time the delivery trip was completed, as
defined in subsection (e)(1).
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26068 and 26090, Business and Professions Code.
§15050. Loss of Access.
(a) If at any point a licensee loses access to the track and trace system for any reason,
the licensee shall prepare and maintain comprehensive records detailing all commercial
cannabis activities that were conducted during the loss of access.
(b) The licensee shall not initiate transport for, receive, or deliver any cannabis or
cannabis products until such time as access is restored.
(c) Once access has been restored, the licensee shall:
(1) Within three calendar days, enter all commercial cannabis activity that occurred
during the loss of access into the track and trace system.
(2) Document the cause for loss of access, and the dates and times for when access to
the track and trace system was lost and when it was restored.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070 and 26160, Business and Professions Code.
§15051. Track and Trace System Reconciliation.
(a) The license shall review the information recorded in the track and trace system at
least once every 30 calendar days to ensure its accuracy, including, at a minimum:
(1) Reconciling on-hand inventory of cannabis and cannabis product with the records in
the track and trace system; and
(2) Reviewing the licensee’s authorized users and removing any users who are no longer
authorized to enter information into the track and trace system.
(b) If a licensee finds a discrepancy between the on-hand inventory and the track and
trace system, the licensee shall conduct an audit and notify the Department in writing if
the discrepancy is significant as defined in section 15034.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070 and 26160, Business and Professions Code.
Article 7. Acceptance or Rejection of Shipments
§15052. Returns.
(a) Cannabis and cannabis products may be returned from the licensee currently in
possession to the originating licensee for any lawful business purpose in accordance with
the following:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 91 of 229
(1) Cannabis and cannabis products shall not be reprocessed, rebranded, relabeled,
physically repackaged, have their expiration dates amended, or be modified in any way
without prior approval from the Department. To receive approval to modify the cannabis
or cannabis products, licensees shall submit a corrective action plan that meets the
requirements specified in section 17305.
(2) After being returned, cannabis and cannabis products shall be transported to a
licensed distributor to undergo laboratory testing in accordance with chapters 2 and 6
and quality assurance review pursuant to sections 15307 and 15307.1 prior to being
transported to a licensed retailer.
(b) Returns of cannabis and cannabis products shall be recorded in the track and trace
system on a return manifest that shall contain the reason for the return.
(c) Cannabis and cannabis products shall not be transported pursuant to a return unless
the licensee returning the cannabis and cannabis products and the licensee receiving the
cannabis and cannabis products have both consented to the return. The licensee who
receives the return shall physically accept the return and enter it into the track and trace
system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26070 and 26160, Business and Professions Code.
§15052.1. Acceptance or Rejection of Shipments.
(a) Licensees shall accept or reject, in whole, shipments of cannabis or cannabis
products.
(b) Notwithstanding subsection (a), partial shipments of cannabis or cannabis products
shall be rejected in the following circumstances:
(1) If a licensee receives a shipment containing cannabis or cannabis products that differ
from those listed on the sales invoice or receipt, the licensee shall reject the portion of
the shipment that is not accurately reflected on the sales invoice or receipt.
(2) If a licensee receives a shipment containing any cannabis or cannabis products that
were damaged during transportation, the licensee shall reject that portion of the shipment
that was damaged.
(3) If a licensee receives a shipment containing cannabis or cannabis products that is
non-compliant with labeling requirements or exceeds its provided expiration date, the
licensee shall reject the portion of the shipment that is non-compliant with labeling
requirements or expired.
(c) The licensee rejecting a shipment of cannabis or cannabis products, whether in whole
or in part, shall record in the track and trace system and indicate on any relevant
manifest, invoice, or sales receipt the specific reason for rejection.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 92 of 229
(d) The licensee who originated a rejected shipment shall physically accept the rejected
shipment and record it in the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26067, 26070 and 26161, Business and Professions Code.
Chapter 2. Distributors
§15300. Distribution Activities.
A licensed distributor shall distribute only cannabis and cannabis products, cannabis
accessories, and licensees’ branded merchandise or promotional materials.
Authority: Sections 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15301. Storage Services.
(a) A licensed distributor may provide storage services, including storage-only services
that are unrelated to the quality assurance and laboratory testing processes, to a
licensed cultivator, licensed manufacturer, licensed microbusiness, licensed retailer, or
another licensed distributor.
(b) A licensed distributor may provide storage services to other licensees for cannabis
goods packaged as they will be sold at retail, cannabis accessories, and licensees’
branded merchandise or promotional materials only.
(c) A licensed distributor shall ensure that each batch of cannabis goods that are stored
for another licensee are stored in accordance with section 15302.
(d) Notwithstanding subsection (b), a licensed distributor shall not store live plants,
except for seeds, on the licensed premises.
(e) Items held for storage-only services by a licensed distributor pursuant to subsection
(b) may be distributed from the premises of the licensed distributor providing the storage-
only services.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26110, Business and Professions Code.
§15302. Storage of Batches for Testing.
(a) A licensed distributor shall ensure that all batches of cannabis or cannabis products
are stored separately and distinctly from other batches of cannabis or cannabis products
on the licensed distributor’s premises.
(b) In addition to any tag or label required by section 15048.5, a licensed distributor shall
ensure a label with the following information is physically attached to each container of
each batch:
(1) The name, license number, and licensed premises address of the licensee who
provided the batch;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 93 of 229
(2) The date of entry into the licensed distributor’s storage area;
(3) The unique identifiers and batch number, if any, associated with the batch;
(4) A description of the cannabis or cannabis products with enough detail to easily
identify the batch;
(5) The weight of or quantity of units in the batch; and
(6) The best-by, sell-by, or expiration date of the batch, if any.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26110
and 26120, Business and Professions Code.
§15303. Packaging, Labeling, and Rolling.
(a) A licensed distributor may package, repackage, label, and relabel cannabis in the
form of dried flower, including pre-rolls, for retail sale. All packages of cannabis in the
form of dried flower, including pre-rolls, shall comply with the requirements in chapter 11.
(b) A licensed distributor shall not process cannabis, but may roll pre-rolls that consist
exclusively of any combination of flower, shake, leaf, or kief. Pre-rolls shall be rolled,
packaged, and labeled prior to regulatory compliance testing.
(c) Licensed distributors may label and relabel a package containing manufactured
cannabis or cannabis products with the amount of cannabinoids and terpenoids based on
regulatory compliance testing results.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013
and 26120, Business and Professions Code.
§15303.1. Net Weight of Dried Flower.
For purposes of this division, the net weight on any packaged cannabis good containing
dried flower only shall not be considered inaccurate if the actual weight is within plus or
minus 3% of the labeled weight.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26120 and 26152, Business and Professions Code.
§15304. Testing Arrangements.
After taking physical possession of a batch of cannabis or cannabis products, the
licensed distributor shall contact a licensed testing laboratory and arrange for a
laboratory employee to come to the licensed distributor's licensed premises to select a
representative sample for laboratory testing.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 94 of 229
§15305. Testing Sample.
(a) The licensed distributor shall ensure that the batch size from which the sample is
taken meets the requirements of this division.
(b) A licensed distributor or an employee of the licensed distributor shall be physically
present to observe the laboratory employee obtain the sample of cannabis or cannabis
products for testing and shall ensure that the increments are taken from throughout the
batch.
(c) The sampling shall be video-recorded with the batch number stated verbally or in
writing on the video at the beginning of the video and a visible time and date indication
on the video recording footage. The video recordings shall be maintained for 90 calendar
days by the licensed distributor.
(d) After the sample has been selected, both the licensed distributor and the laboratory
employee shall sign and date the chain of custody form pursuant to section 15706 attesting
to the sample selection having occurred.
(e) A licensed distributor shall not assist the laboratory employee nor touch the cannabis
or cannabis products or the sampling equipment while the laboratory employee is
obtaining the sample.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26104
and 26110, Business and Professions Code.
§15306. Regulatory Compliance Testing Results.
(a) A licensed distributor shall store a batch on its licensed premises until it either:
(1) Passes regulatory compliance testing as described in subsection (b); or
(2) If it fails regulatory compliance testing as described in subsection (d), a corrective
action plan for remediation has been approved by the Department pursuant to section
17305.
(b) A batch passes regulatory compliance testing when the sample meets specifications
in chapter 6. Once a batch has passed regulatory compliance testing, the batch shall not
be repackaged into a new production batch in the track and trace system nor shall it be
assigned a new batch number.
(c) When a batch passes regulatory compliance testing, the cannabis or cannabis
products may be transported to one or more licensed retailers, licensed distributors, or
licensed microbusinesses authorized to conduct distribution or retail. A copy of the
certificate of analysis for regulatory compliance testing shall be provided to all licensed
distributors receiving the batch for purposes of quality assurance review under section
15307. A copy of the certificate of analysis shall also be provided to the licensee who
produced the batch. The copies of the certificate of analysis required by this subsection
may be provided electronically.
(d) A batch fails regulatory compliance testing when the sample does not meet
specifications in chapter 6.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 95 of 229
(e) If a failed batch has been approved for remediation by the Department pursuant to
section 17305, a licensed distributor may transport or arrange for the transportation of
the batch to the licensed manufacturer or microbusiness authorized to engage in
manufacturing that has received approval from the Department to conduct the
remediation. Once a batch has been approved for remediation by the Department, the
licensed distributor shall transport the batch to the approved manufacturer or
microbusiness within 30 calendar days of the approval.
(f) A licensed distributor shall destroy a batch that failed regulatory compliance testing
and cannot be remediated pursuant to section 17305 within 60 days of failure of the
batch or 30 days of receiving notification from the Department that the batch may not be
remediated. The distributor shall notify the licensed manufacturer or cultivator who
produced the batch of the destruction and the reasons for it. Evidence of destruction
including, but not limited to, video or photos of the destruction shall be provided to the
Department upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070,
26100, 26104 and 26110, Business and Professions Code.
§15307. Quality-Assurance Review.
When a licensed distributor receives a certificate of analysis for regulatory compliance
testing from the licensed testing laboratory or upon transfer from another licensed
distributor stating that the batch meets specifications required by law, the licensed
distributor shall ensure the following before transporting the cannabis goods to one or
more licensed retailers or licensed microbusinesses authorized to engage in retail sales:
(a) The certificate of analysis for regulatory compliance testing that the licensed distributor
received from the licensed testing laboratory or another licensed distributor is the certificate
of analysis that corresponds to the batch;
(b) The date on the certificate of analysis for the regulatory compliance testing is less
than 12 months old;
(c) The label on the cannabis goods is consistent with the certificate of analysis for
regulatory compliance testing regarding cannabinoid content required to be listed by law
as follows:
(1) If the cannabis goods are labeled with the content for cannabinoids, terpenoids, Total
THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory
compliance testing, the licensed distributor shall ensure that the labeled amounts are
accurate in accordance with section 15307.1, and
(2) If the cannabis goods are not labeled with the content for cannabinoids, terpenoids,
Total THC, and/or Total CBD prior to receiving the certificate of analysis for regulatory
compliance testing, the licensed distributor shall label the cannabis goods with the
amounts listed on the certificate of analysis pursuant to section 15303;
(d) The packaging and labeling of the cannabis goods complies with Business and
Professions Code section 26120 and this division, except cannabis goods are not
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 96 of 229
required to be labeled or otherwise identified as medicinal products prior to retail sale
unless the cannabis goods must be labeled as such pursuant to this division;
(e) The cannabis goods have not exceeded their expiration or sell-by date if one is
provided;
(f) The weight or count of the batch comports with that in the track and trace system. A
licensed distributor shall use scales as required by this division; and
(g) All events prior to receipt of the certificate of analysis for regulatory compliance
testing have been entered into the track and trace system.
(h) If the licensed distributor determines that the cannabis goods are not fit for sale
because they do not meet the requirements of this section, then the distributor may
arrange for a corrective action plan to be submitted pursuant to section 17305 in
accordance with the following:
(1) If the cannabis goods may be relabeled by the licensed distributor, another distributor,
or microbusiness authorized to engage in distribution, then the distributor who will
conduct the remediation shall submit a corrective action plan pursuant to section 17305.
Transport to another licensed distributor or microbusiness authorized to engage in
distribution shall not occur until the corrective action plan has been approved by the
Department.
(2) If the cannabis goods may only be remediated by a licensed manufacturer or
microbusiness authorized to engage in manufacturing because they must be repackaged
or reprocessed, then the licensed distributor shall comply with the provisions of
subsections (e) and (f) of section 15306.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070,
26110 and 26120, Business and Professions Code.
§15307.1. Quality-Assurance Review for Labeling Cannabinoids and Terpenoids.
(a) For purposes of this division, any one cannabinoid, THC, Total THC, CBD and/or
Total CBD claimed to be present on a label shall not be considered inaccurate if the
difference in percentage on the certificate of analysis is plus or minus 10.0%.
(b) For purposes of this division, the terpenoid testing results on the label of any one
terpenoid claimed to be present shall not be considered inaccurate if the difference in
percentage on the certificate of analysis is plus or minus 10.0%.
(c) For purposes of this section, the difference in percent shall be calculated using the
following equation:
Difference in percent = │(laboratory measurement – label claim) │/ (label claim) x 100%
(d) For purposes of this section, Total THC and Total CBD shall have the same meaning
as defined in chapter 6.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 97 of 229
(e) Cannabis goods shall be labeled with accurate concentration limits in accordance
with sections 17304 and 17407.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100
and 26110, Business and Professions Code.
§15307.2. Licensed Distributor to Licensed Distributor Transfers.
(a) Cannabis goods that have undergone and passed regulatory compliance testing and
have an accompanying certificate of analysis may be transferred to one or more licensed
distributors.
(b) Cannabis goods that have not been transported to retail within 12 months of the date
on the certificate of analysis must be destroyed or retested by the licensed distributor in
possession of the cannabis goods. Retesting pursuant to this subsection shall only be
conducted if the cannabis goods have not been modified in any way.
(c) If the licensed distributor, manufacturer, or microbusiness authorized to engage in
manufacturing will be repackaging, relabeling, reformulating, or modifying the cannabis
goods in any way, they shall submit a corrective action plan pursuant to section 17305
and receive approval from the Department before beginning modifications to the
cannabis goods.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26110, Business and Professions Code.
§15308. Insurance Requirements.
(a) A distributor licensee shall at all times carry and maintain commercial general liability
insurance in the aggregate in an amount no less than $2,000,000 and in an amount no
less than $1,000,000 for each loss.
(b) A distributor licensee shall maintain the insurance required in subsection (a) from an
insurance company that is:
(1) A non-admitted insurer that meets the requirements of Insurance Code section
1765.1 or 1765.2, and the insurance is placed pursuant to Insurance Code section 1763
and through a surplus line broker licensed under Insurance Code section 1765;
(2) An insurer qualified to do business in California by the Secretary of State and
authorized by the Insurance Commissioner to write the liability and property classes of
insurance as defined by Insurance Code sections 102, 103, 107, 108, 114, and 120; or
(3) A registered risk retention group compliant with the California Risk Retention Act of
1991. (See Insurance Code sections 125-140.)
(c) Admitted insurers and risk retention groups must show proof of capitalization in the
amount of at least $10,000,000.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26051.5 and 26070, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 98 of 229
§15309. Inventory Accounting.
(a) A licensed distributor shall be able to account for all inventory and provide that
information to the Department upon request.
(b) To account for inventory, a licensed distributor shall ensure all batches of cannabis or
cannabis products are stored in accordance with section 15302 and shall be able to
provide the Department with the status of the batch as follows:
(1) The batch is being held in storage for another licensee;
(2) The batch is awaiting sampling for regulatory compliance testing;
(3) The batch has been sampled and is awaiting regulatory compliance testing results;
(4) The batch has passed regulatory compliance testing;
(5) The batch has failed regulatory compliance testing and is awaiting approval for
remediation;
(6) The batch has failed regulatory compliance testing and is awaiting destruction; and
(7) The batch is being stored or held for any other lawful purpose under the Act or this
division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26160, Business and Professions Code.
§15311. Requirements for the Transportation of Cannabis and Cannabis Products.
The following requirements apply when transporting cannabis and cannabis products
between licensees or licensed premises:
(a) Transportation shall only be conducted by persons holding a distributor license under
the Act, or employees of those persons. All vehicles and trailers used for transportation
shall be owned or leased, in accordance with the Vehicle Code, by the licensee. The
licensee is not required to be the sole owner or lessor of the vehicle or trailer and all
owners and lessors may use the vehicle for non-commercial cannabis activity.
(b) Prior to transporting any cannabis and cannabis products goods, the licensed
distributor shall have a completed sales invoice or receipt that meets the requirements of
Business and Professions Code section 26161. The licensed distributor shall only
transport cannabis and cannabis products listed on the sales invoice or receipt. The
sales invoice or receipt may not be altered or changed once transport begins.
(c) A licensed distributor employee shall always carry a copy of the distributor’s license
and a copy of the QR Code Certificate issued by the Department while engaging in the
transportation of cannabis goods. The QR Code Certificate shall comply with the
requirements of section 15039, subsection (d).
(d) All vehicles transporting cannabis goods for hire shall be required to have a motor
carrier permit issued to the licensed distributor pursuant to Chapter 2 (commencing with
Section 34620) of Division 14.85 of the Vehicle Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 99 of 229
(e) Transportation by means of aircraft, watercraft, drone, rail, human-powered vehicle,
or unstaffed vehicle is prohibited.
(f) Cannabis and cannabis products shall only be transported inside of a vehicle or trailer
and shall not be visible or identifiable from outside of the vehicle or trailer.
(g) Cannabis and cannabis products shall be transported in a fully enclosed, windowless,
locked trailer or trunk that cannot be accessed from inside the vehicle, or in a secured
area or compartment within the interior of the vehicle. A “secured area” is defined as an
area where solid or locking metal partitions, cages, or high-strength shatterproof acrylic
can be used to create a secure compartment in the fully enclosed vehicle. The secured
area may be comprised on three sides of any part of the body of the vehicle, provided the
parts of the vehicle used for the purposes of this section are shatterproof and are not
made of glass.
(h) While left unattended, vehicles and trailers shall be locked and secured.
(i) A licensed distributor shall not leave a vehicle or trailer containing cannabis and
cannabis products unattended in a residential area or parked overnight in a residential
area.
(j) At a minimum, a licensed distributor shall have a vehicle alarm system on all transport
vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up
alarms may also be used.
(k) Packages or containers holding cannabis and cannabis products shall not be
tampered with, or opened, during transport.
(l) A licensed distributor transporting cannabis and cannabis products shall only travel
between licensees shipping or receiving cannabis and cannabis products and its own
licensed premises when engaged in the transportation of cannabis and cannabis
products. The licensed distributor may transport multiple shipments of cannabis and
cannabis products at once in accordance with applicable laws. A licensed distributor shall
not deviate from the travel requirements described in this section, except for necessary
rest, fuel, or vehicle repair stops.
(m) Under no circumstances may non-cannabis goods, except for cannabis accessories
and licensees’ branded merchandise or promotional materials, be transported with
cannabis and cannabis products.
(n) Vehicles and trailers transporting cannabis and cannabis products are subject to
inspection by the Department at any licensed premises or during transport at any time.
(o) Notwithstanding subsections (e) through (g), if it is not operationally feasible to
transport cannabis or cannabis products inside of a vehicle or trailer because the
licensed premises that the cannabis or cannabis products will be transported from and
the licensed premises that will be receiving the cannabis or cannabis products are
located within the same building or on the same parcel of land, the cannabis or cannabis
products may be transported by foot, hand truck, fork lift, or other similar means. A
shipping manifest that complies with this division is required when transporting cannabis
or cannabis products pursuant to this subsection.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 100 of 229
(p) Notwithstanding subsection (e), transportation of cannabis and cannabis products
may be conducted via waterway to licensees located on Catalina Island. The provisions
of this section and other sections regarding vehicle requirements also apply to vessels
used to transport cannabis and cannabis products via waterway pursuant to this section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15312. Required Transport Vehicle Information.
(a) Upon request, the licensed distributor shall provide the Department with a copy of the
certificate of ownership or registration card issued by the California Department of Motor
Vehicles, the year, make, model, license plate number, and Vehicle Identification
Number in writing, and proof of insurance for any vehicle or trailer used to transport
cannabis or cannabis products.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26070, Business and Professions Code.
§15313. Transport Personnel Requirements.
(a) No person under the age of 21 years old shall be in a commercial vehicle or trailer
transporting cannabis or cannabis products; and
(b) Only a licensee, an employee of the licensed distributor, or security personnel who
meets the requirements of section 15045 shall be in a vehicle while transporting
cannabis or cannabis products.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26070, Business and Professions Code.
§15314. Shipping Manifest.
(a) Prior to transporting cannabis or cannabis products, a licensed distributor shall
generate a shipping manifest through the track and trace system for the following
activities:
(1) Regulatory compliance testing and sampling;
(2) Sale of cannabis or cannabis products to a licensee;
(3) Destruction or disposal of cannabis or cannabis products; and
(4) Any other activity, as required pursuant to this division, or by the Department.
(b) The licensed distributor shall transmit the shipping manifest to the Department and
the licensee that will receive the cannabis or cannabis products prior to transporting the
cannabis or cannabis products.
(c) The licensed distributor shall ensure and verify that the cannabis or cannabis
products being taken into possession for transport at the originating licensed premises
are as described and accurately reflected in the shipping manifest. For purposes of this
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 101 of 229
section, the licensed distributor may verify that the cannabis or cannabis products are
accurately reflected in the shipping manifest by confirming that the number of boxes of
cannabis or cannabis products, type of cannabis or cannabis products, weight and/or
units of cannabis or cannabis products matches the label on the boxes containing the
cannabis or cannabis products.
(1) The licensed distributor shall not take into possession or transport:
(A)
Any cannabis or cannabis products that are not on the shipping manifest; or
(B)
Any cannabis or cannabis products that are less than or greater than the amount
reflected on the shipping manifest.
(2) The licensed distributor is responsible for any discrepancies between the shipping
manifest and the cannabis or cannabis products in its possession during transport, and
subject to any enforcement or disciplinary action related to such discrepancy.
(3) A licensed distributor shall not void or change a shipping manifest after departing
from the originating licensed premises.
(d) A shipping manifest shall accompany every transport of cannabis or cannabis
products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067
and 26070, Business and Professions Code.
§15315. Distributor Transport Only License.
(a) A licensed distributor transport only licensee may transport cannabis or cannabis
products between licensees; however, they shall not transport any cannabis or cannabis
products except for immature cannabis plants, seeds, and trade samples to a licensed
retailer or licensed microbusiness authorized to engage in retail sales.
(b) A complete application for a distributor transport only license shall include all the
information required in an application for a distributor license.
(c) The licensing fee for a distributor transport only license will be based in part upon
whether the licensee intends to transport only cannabis or cannabis products that the
licensee has cultivated or manufactured (self-distribution), or whether the licensee
intends to transport cannabis or cannabis products cultivated or manufactured by other
licensees.
(d) A distributor transport only licensee shall comply with all of the requirements for a
holder of a distributor license, except for those related to quality assurance and
regulatory compliance testing.
(e) A distributor transport only licensee shall not hold title to any cannabis or cannabis
products unless the licensee also holds a Department-issued cultivation, manufacturing,
retailer, or microbusiness license.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 102 of 229
(f) Holding a distributor transport only license shall not authorize a licensee to:
(1) Engage in the delivery of cannabis or cannabis products as defined in Business and
Professions Code section 26001(o);
(2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis or
cannabis products; or
(3) Arrange for the regulatory compliance testing of cannabis or cannabis products by a
testing laboratory.
(g) A distributor transport only licensee who is licensed to engage in self-distribution and
whose licensed premises will be on the same property as their licensed cultivation or
licensed manufacturing premises shall comply with the security provisions contained in
chapter 1, article 5 that are applicable to their licensed cultivation or licensed
manufacturing premises.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26070, Business and Professions Code.
Chapter 3. Retailers
§15400. Access to Retailer Premises.
(a) Access to the licensed premises of a retailer with only an A-designation shall be
limited to individuals who are at least 21 years of age.
(b) Access to the licensed premises of a retailer with only an M-designation shall be
limited to individuals who are at least 18 years of age and have a valid physician's
recommendation for medicinal cannabis, and individuals who are at least 21 years of
age.
(c) Access to the licensed premises of a retailer with both an A- designation and an M-
designation may include persons identified in subsections (a) and (b) of this section.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26140, Business and Professions Code.
§15402. Customer Access to the Retail Area.
(a) Individuals shall be granted access to the retail area to purchase cannabis goods only
after the retailer or an employee of the retailer has confirmed the individual’s age and
identity pursuant to section 15404.
(b) The licensed retailer or at least one employee shall be physically present in the retail
area at all times when individuals who are not employees of the licensed retailer are in
the retail area.
(c) All sales of cannabis goods must take place within the retail area of the retailer’s
licensed premises, except for cannabis goods sold through delivery, a drive-in or drive-
through window as authorized by section 15025(e), or curbside delivery as provided in
subsection (d).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 103 of 229
(d) A licensed retailer or licensed microbusiness authorized to engage in storefront sales
at their licensed premises may conduct sales through curbside delivery. Cannabis goods
that have been purchased by a customer may be delivered to the customer in a vehicle
parked immediately outside the licensed retail premises. Curbside delivery of cannabis
goods must occur under video surveillance and meet the requirements of section 15044,
subsection (e) for recording point-of-sale areas. Retail employees engaging in curbside
delivery must verify each customer’s age pursuant to subsection (a). Licensed retailers
who are only authorized to engage in retail sales through delivery shall not conduct sales
through curbside delivery.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26140, Business and Professions Code.
§15403. Hours of Operation.
A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00
a.m. Pacific Time and 10:00 p.m. Pacific Time.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15403.1. Requirements While Not Open for Business.
At any time the licensed premises is not open for retail sales, a licensed retailer shall
ensure that:
(a) The licensed premises is securely locked with commercial-grade, nonresidential door
locks as required in section 15046 of this division;
(b) The licensed premises is equipped with an active alarm system pursuant to section
15047 of this division, which shall be activated when the licensed retailer or its
employees are not on the licensed premises; and
(c) Only employees of the licensee and other authorized individuals are allowed access
to the licensed premises. For the purposes of this section, authorized individuals include
individuals employed by the licensee as well as any outside vendors, contractors, or
other individuals conducting business that requires access to the licensed premises.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15404. Retail Customers.
(a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at
least 21 years of age after confirming the customer's age and identity by inspecting a
valid form of identification provided by the customer as required by subsection (c) of this
section.
(b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at
least 18 years of age and possesses a valid physician's recommendation after confirming
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 104 of 229
the customer's age, identity, and physician's recommendation as required by subsection
(c) of this section.
(c) Acceptable forms of identification include the following:
(1) A document issued by a federal, state, county, or municipal government, or a political
subdivision or agency thereof, including, but not limited to, a valid motor vehicle
operator's license, that contains the name, date of birth, height, gender, and photo of the
person;
(2) A valid identification card issued to a member of the Armed Forces that includes the
person's name, date of birth, and photo; or
(3) A valid passport issued by the United States or by a foreign government.
Authority: Section 26013, Business and Professions Code. Reference: Section 26140,
Business and Professions Code.
§15405. Cannabis Goods Display.
(a) Cannabis goods for inspection and sale shall only be displayed in the retail area.
(b) Cannabis and cannabis products may be removed from their packaging and placed in
containers to allow for customer inspection. The containers shall not be readily
accessible to customers without assistance of retailer personnel. A container must be
provided to the customer by the licensed retailer or its employees, who shall remain with
the customer at all times that the container is being inspected by the customer.
(c) Cannabis and cannabis products removed from their packaging for display shall not
be sold or consumed when the cannabis and cannabis products are no longer used for
display.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
§15406. Cannabis Goods for Sale.
A licensed retailer shall not make any cannabis goods available for sale or delivery to a
customer unless:
(a) The cannabis goods were received by the licensed retailer from a licensed distributor
or licensed microbusiness authorized to engage in distribution;
(b) The licensed retailer has verified that the cannabis goods have not exceeded their
best-by, sell-by, or expiration date if one is provided;
(c) In the case of manufactured cannabis products, the product complies with all
requirements of Business and Professions Code section 26130;
(d) The cannabis goods have undergone regulatory compliance testing as required by
the Act and chapter 6;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 105 of 229
(e) The batch number, if any, is labeled on the package of cannabis goods and matches
the batch number on the corresponding certificate of analysis for regulatory compliance
testing;
(f) The packaging and labeling of the cannabis goods complies with Business and
Professions Code section 26120 and this division; and
(g) The cannabis goods comply with all applicable requirements found in the Act and this
division.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26120, Business and Professions Code.
§15407. Sale of Non-Cannabis Goods.
(a) In addition to cannabis goods, a licensed retailer may sell only cannabis accessories
and the branded merchandise of any licensee. Licensed retailers may provide customers
with promotional materials.
(b) Notwithstanding subsection (a), a licensed retailer or licensed microbusiness
authorized for retail sales who operates a consumption area on the licensed premises in
accordance with Business and Professions Code section 26200(g) may also sell
prepackaged, non-cannabis-infused, non-alcoholic food and beverages if the applicable
local jurisdiction allows such sales.
(c) Nothing in this section shall be interpreted to prevent consumers from bringing or
receiving non-cannabis-infused, non-alcoholic food and beverages from a restaurant or
food delivery service for consumption in the designated consumption area on the
licensed premises, if the applicable local jurisdiction allows such activities.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070,
26151 and 26152, Business and Professions Code.
§15408. Sale of Live Plants and Seeds.
(a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if
all of the following requirements are met:
(1) The plant is not flowering and is shorter and narrower than 18 inches; and
(2) The plant or seed originated from a licensed nursery that holds a valid license from
the Department or a licensed microbusiness authorized to engage in cultivation.
(b) A licensed retailer shall not apply or use any pesticide, on live plants. A licensed
retailer shall not cause any pesticide to be applied or used on live plants.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26070 and 26100, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 106 of 229
§15409. Daily Limits.
(a) A licensed retailer shall not sell more than the following amounts to a single adult-use
cannabis customer in a single day:
(1) 28.5 grams of non-concentrated cannabis.
(2) 8 grams of cannabis concentrate as defined in Business and Professions Code
section 26001, including cannabis concentrate contained in cannabis products.
(3) 6 immature cannabis plants.
(b) A licensed retailer shall not sell more than the following amounts to a single medicinal
cannabis patient, or to a patient's primary caregiver purchasing medicinal cannabis on
behalf of the patient, in a single day:
(1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant
conversion as provided in Health and Safety Code section 11362.77.
(2) 12 immature cannabis plants.
(c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient's valid
physician's recommendation contains a different amount than the limits listed in this
section, the medicinal cannabis patient may purchase an amount of medicinal cannabis
consistent with the patient's needs as recommended by a physician and documented in
the physician's recommendation.
(d) The limits provided in subsection (a) and subsection (b) of this section shall not be
combined to allow a customer to purchase cannabis goods in excess of any of the limits
provided in this section.
(e) For the purposes of this section, a licensed retailer shall be responsible for
determining that the amount of cannabis concentrates found in manufactured cannabis
products sold to customers comply with the requirements of this section.
Authority: Section 26013, Business and Professions Code. Reference: Section 26012,
Business and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety
Code.
§15410. Customer Return of Cannabis Goods.
(a) For the purposes of this section, “customer return” means a customer's return of
cannabis goods that were purchased from a licensed retailer, back to the licensed retailer
from whom the cannabis goods were purchased.
(b) A licensed retailer may accept customer returns of cannabis goods that were
previously sold to a customer.
(c) A licensed retailer shall not resell cannabis goods that have been returned.
(d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer
premises as a customer return.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 107 of 229
(e) Defective manufactured cannabis products returned by customers to a licensed
retailer may be destroyed or returned to the licensed distributor from whom the cannabis
goods were obtained.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26011.5, 26012 and 26070, Business and Professions Code.
§15411. Requirements for Providing Free Cannabis Goods to Medicinal
Consumers.
(a) A licensed retailer shall not provide free cannabis goods to any person. A licensed
retailer shall not allow individuals who are not employed by the licensed retailer to
provide free cannabis goods to any person on the licensed premises.
(b) Notwithstanding subsection (a), in order to provide access to medicinal cannabis
patients who have difficulty accessing medicinal cannabis goods, a licensee who holds
an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness
license that is authorized for retail sales may provide free medicinal cannabis goods if the
following criteria are met:
(1) Free cannabis goods are provided only to a medicinal cannabis patient or primary
caregiver who possesses a valid physician’s recommendation for medicinal cannabis or
cannabis products or a valid identification card issued under Health and Safety Code
section 11362.71.
(A) Before providing free cannabis goods to a medicinal cannabis patient who does not
possess a valid identification card issued under Health and Safety code section 11362.7,
the licensed retailer shall do the following:
(i) Verify with the Medical Board of California, the Osteopathic Medical Board of
California, or the California Board of Podiatric Medicine that the attending physician
providing the patient’s medicinal cannabis recommendation has a license in good
standing to practice medicine or osteopathy in the State of California;
(ii) Keep a copy of the patient’s or primary caregiver’s driver’s license or other
government-issued identification; and
(iii) Prepare and retain written certification that the licensed retailer verified the
physician’s recommendation as required by this section that includes the date and time
of the verification, the name of the employee who conducted the verification, the name of
the licensing board(s) contacted, the method by which the licensing board was
contacted, and the name of the person at the licensing board who provided the
verification if it was conducted orally, or a copy of the verification if it was provided in
writing.
(B) After initially verifying a physician’s recommendation for a specific medicinal cannabis
patient as required by this section, a licensed retailer shall also verify the physician’s
recommendation at least annually, for the time period that the physician’s
recommendation is valid.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 108 of 229
(C) A licensee shall not provide free cannabis goods to a medicinal cannabis patient or
the patient’s primary caregiver if the physician’s recommendation has expired.
(2) Prior to being provided to the patient or the patient’s primary caregiver, the cannabis
goods have been properly designated for donation and recorded in the track and trace
system.
(3) Except as provided under Revenue and Taxation Code section 34012.1, the donated
cannabis goods shall comply with all statutory and regulatory requirements that apply to
cannabis goods for sale, including those for cultivating, manufacturing, distributing,
processing, storing, regulatory compliance testing, packaging, labeling, transporting, and
delivering.
(4) The cannabis goods provided to a medicinal cannabis patient or the patient’s primary
caregiver pursuant to this section shall be applied toward the daily purchase limit for a
medicinal cannabis customer contained in section 15409 and the possession limits
contained in Health and Safety Code section 11362.77.
(5) If cannabis goods are donated by a licensed retailer, then the sales invoice or receipt
for the cannabis goods shall indicate that the cannabis goods were donated.
(6) The provision of free cannabis goods shall be recorded in the track and trace system
and the licensed retailer’s inventory records. The inventory records shall also include
either the number of the medicinal cannabis patient’s identification card issued under
Health and Safety Code section 11362.7 or a copy of a valid physician’s
recommendation and the written certification that the recommendation was verified as
required by this section.
(c) In addition to the provision of free cannabis goods in subsection (b), a licensed
retailer may donate cannabis goods and the use of equipment in compliance with any
compassionate use, equity, or other similar program administered by a local jurisdiction.
The licensee shall ensure that all cannabis goods provided pursuant to this subsection
comply with subsections (b)(4), (b)(5), and (b)(6).
(d) A licensed retailer may contract with an individual or organization to coordinate the
provision of free cannabis goods on the licensee’s retail premises. All cannabis goods
provided through an individual or organization pursuant to this subsection shall comply
with the requirements of this section. The licensed retailer may be disciplined for
violations of the Act that are committed by an individual or organization with whom the
licensee has contracted.
(e) A licensed retailer authorized to engage in retail sales only through delivery shall
provide free cannabis goods only by delivery. Free cannabis goods provided through
delivery shall comply with the requirements of this section.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26153 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 109 of 229
§15412. Prohibition on Packaging and Labeling by a Retailer.
(a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not
packaged as they will be sold at final sale, in compliance with this division.
(b) A licensed retailer shall not package or label cannabis goods.
(c) Notwithstanding subsection (b) of this section, a licensed retailer may place a barcode
or similar sticker on the packaging of cannabis goods to be used in inventory tracking. A
barcode or similar sticker placed on the packaging of a cannabis goods shall not obscure
any labels required by the Act or this division.
Authority: Section 26013, Business and Professions Code. Reference: Section 26120,
Business and Professions Code.
§15413. Cannabis Goods Packaging and Exit Packaging.
(a) All cannabis goods sold by a licensed retailer shall be in compliance with the
packaging requirements in chapter 11.
(b) A package containing cannabis goods shall be tamper-evident and child-resistant. If
the package contains multiple servings, the package must also be resealable.
(c) All cannabis goods purchased by a customer shall not leave the licensed retailer’s
premises unless the goods are placed in an opaque exit package.
(d) Immature plants and seeds sold by a licensed retailer are not required to be placed in
resealable, tamper-evident, child-resistant packaging.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070.1
and 26120, Business and Professions Code.
§15414. Non-Storefront Retailer.
(a) A non-storefront retailer licensee shall be authorized to conduct retail sales
exclusively by delivery as defined in Business and Professions Code section 26001(o).
(b) A complete application for a non-storefront retailer license shall include all the
information required in an application for a retailer license.
(c) A non-storefront retailer licensee shall comply with all the requirements applicable to
retailer licensees, except for those provisions related to public access to the licensed
premises and the retail area.
(d) The licensed premises of a non-storefront retailer licensee shall be closed to the
public.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012 and 26070, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 110 of 229
§15415. Delivery Employees.
(a) All deliveries of cannabis goods shall be performed by a delivery employee who is
directly employed by a licensed retailer.
(b) Each delivery employee of a licensed retailer shall be at least 21 years of age.
(c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis
goods shall not be made through the use of an unstaffed vehicle.
(d) Deliveries of cannabis goods shall be received by customers only during the hours of
operation established by section 15403. Delivery employees shall return to the licensed
premises after making their last delivery of the day if they have any unsold cannabis
goods to return to the premises.
(e) During the process of delivery, the licensed retailer’s delivery employee may not
engage in any activities except for cannabis goods delivery and necessary rest, fuel, or
vehicle repair stops.
(f) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the
retailer’s current license, a copy of the QR Code Certificate issued by the Department,
which complies with section 15039, subsection (d), the employee’s government-issued
identification, and an identification badge provided by the employer pursuant to section
15043. A delivery employee shall provide a copy of the retail license, a copy of the QR
Code Certificate, and their employee identification badge to a delivery customer upon
request.
(g) Prior to providing cannabis goods to a delivery customer, a delivery employee shall
confirm the identity and age of the delivery customer as required by section 15404 and
ensure that all cannabis goods sold comply with requirements of section 15413.
(h) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees
and shall provide the list to the Department upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26090, Business and Professions Code.
§15415.1. Deliveries Facilitated by Technology Platforms.
(a) A licensed retailer or licensed microbusiness shall not sell or otherwise transfer any
cannabis goods to a customer through the use of an unlicensed third party, intermediary
business, broker, or any other business or entity.
(b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed
microbusiness may contract with a service that provides a technology platform to
facilitate the sale and delivery of cannabis goods, in accordance with all of the following:
(1) The licensed retailer or licensed microbusiness does not allow for delivery of
cannabis goods by the technology platform service provider.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 111 of 229
(2) The licensed retailer or licensed microbusiness does not share in the profits of the
sale of cannabis goods with the technology platform service provider, or otherwise
provide for a percentage or portion of the cannabis goods sales to the technology
platform service provider.
(3) The licensed retailer or licensed microbusiness shall not advertise or market cannabis
goods in conjunction with the technology platform service provider, outside of the
technology platform, and shall ensure that the technology platform service provider does
not use the licensed retailer's or licensed microbusiness's license number or legal
business name on any advertisement or marketing that primarily promotes the services
of the technology platform.
(4) The licensed retailer or licensed microbusiness shall ensure the following information
is provided to customers:
(A) Any cannabis goods advertised or offered for sale on or through the technology
platform shall disclose, at a minimum, the licensed retailer's or licensed microbusiness's
legal business name and license number.
(B) Customers placing an order for cannabis goods through the technology platform shall
be able to easily identify the licensed retailer or licensed microbusiness that each
cannabis good is being ordered or purchased from. This information shall be available to
the customer prior to the customer placing an order or purchasing the cannabis goods.
(5) All required sales invoices and receipts, including any receipts provided to the
customer, shall disclose, at a minimum, the licensed retailer's or licensed
microbusiness's legal business name and license number.
(6) All other delivery, marketing, and advertising requirements under this division are
complied with.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26001,
26070, 26090, 26151 and 26152, Business and Professions Code.
§15416. Delivery to a Physical Address.
(a) A delivery employee may only deliver cannabis goods to a physical address in
California.
(b) A delivery employee shall not leave the State of California while possessing cannabis
goods.
(c) A delivery employee shall not deliver cannabis goods to an address located on
publicly owned land or any address on land or in a building leased by a public agency.
This prohibition applies to land held in trust by the United States for a tribe or an
individual tribal member unless the delivery is authorized by and consistent with
applicable tribal law.
(d) A delivery employee may deliver to any jurisdiction within the State of California
provided that such delivery is conducted in compliance with all delivery provisions of this
division.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 112 of 229
(e) A delivery employee shall not deliver cannabis goods to a school providing instruction
in kindergarten or any grades 1 through 12, day care center, or youth center.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26090, Business and Professions Code.
§15417. Delivery Vehicle Requirements.
(a) A licensed retailer’s delivery employee, carrying cannabis goods for delivery, shall
only travel in an enclosed motor vehicle. Any vehicle used in the delivery of cannabis
goods shall be operated by a delivery employee of the licensee. A vehicle used in the
delivery of cannabis goods shall not have any marking or other indications on the exterior
of the vehicle that may indicate that the delivery employee is carrying cannabis goods for
delivery. Only the licensee or an employee of the retailer licensee for whom delivery is
being performed shall be in the delivery vehicle.
(b) While carrying cannabis goods for delivery, a licensed retailer’s delivery employee
shall ensure the cannabis goods are not visible to the public. Cannabis goods shall be
stored in a secure, fully enclosed trunk that cannot be accessed from inside the vehicle,
or in a secured area or compartment within the interior of the vehicle. A “secured area” is
defined as an area where solid or locking metal partitions, cages, or high-strength
shatterproof acrylic can be used to create a secure compartment in the fully enclosed
vehicle. The secured area may be comprised on three sides by any part of the body of
the vehicle, provided the parts of the vehicle used for the purposes of this section are
shatterproof and are not made of glass.
(c) A licensed retailer’s delivery employee shall not leave cannabis goods in an
unattended motor vehicle unless the motor vehicle is locked and equipped with an active
vehicle alarm system. Any cannabis goods left in an unattended vehicle must be stored
in a container as required in subsection (b).
(d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated
Global Positioning System (GPS) device for identifying the geographic location of the
delivery vehicle and recording a history of all locations traveled to by the delivery employee
while engaged in delivery. A dedicated GPS device must be owned by the licensee and
used for delivery only. The device shall be either permanently or temporarily affixed to the
delivery vehicle and shall remain active and inside of the delivery vehicle at all times during
delivery. At all times, the licensed retailer shall be able to identify the geographic location
of all delivery vehicles that are making deliveries for the licensed retailer and document the
history of all locations traveled to by a delivery employee while engaged in delivery. A
licensed retailer shall provide this information to the Department upon request. The history
of all locations traveled to by a delivery employee while engaging in delivery shall be
maintained by the licensee for a minimum of 90 days.
(e) Upon request, a licensed retailer shall provide the Department with information
regarding any motor vehicle used for the delivery of cannabis goods, including the
vehicle’s make, model, color, Vehicle Identification Number, license plate number and
Department of Motor Vehicles registration information.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 113 of 229
(f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to
inspection by the Department. Vehicles used to deliver cannabis goods may be stopped
and inspected by the Department at any licensed premises or during delivery.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26090, Business and Professions Code.
§15418. Cannabis Goods Carried During Delivery.
(a) A licensed retailer's delivery employee shall not carry cannabis goods in the delivery
vehicle with a value in excess of $10,000 at any time.
(b) For the purposes of this section, the value of cannabis goods shall be determined
using the current retail price of all cannabis goods carried by, or within the delivery
vehicle of, the licensed retailer's delivery employee.
(c) A delivery employee may only carry cannabis goods, cannabis accessories, branded
merchandise of any licensee, or promotional materials in the delivery vehicle and may
only perform deliveries for one licensed retailer at a time. A delivery employee must
depart and return to the same licensed premises before taking possession of any
cannabis goods from another licensee to perform deliveries.
(d) Before leaving the licensed premises, the licensed retailer's delivery employee must
have a delivery inventory ledger of all cannabis goods provided to the licensed retailer's
delivery employee. The contents of the delivery inventory ledger must comply with the
requirements of section 15049.3. During the delivery trip, as defined in section 15049.3,
the delivery employee shall maintain the delivery inventory ledger in hard copy or
electronically, the latter of which may be an electronic copy maintained in the track and
trace system. The delivery inventory ledger must be updated after each completed
delivery to reflect the remaining inventory carried by the delivery employee. The delivery
inventory ledger must otherwise be updated in accordance with the requirements of
section 15049.3, and then entered into the track and trace system no later than the end
of the calendar day on which the delivery trip occurred.
(e) The licensed retailer's delivery employee shall maintain a log that includes all stops
from the time the licensed retailer's delivery employee leaves the licensed premises to
the time that the licensed retailer's delivery employee returns to the licensed premises,
and the reason for each stop. The log shall be turned in to the licensed retailer when the
licensed retailer's delivery employee returns to the licensed premises. The licensed
retailer must maintain the log as a commercial cannabis activity record as required by
this division. The log may be maintained electronically.
(f) Prior to arrival at any delivery location, the licensed retailer must have received a
delivery request from the customer and provided the delivery request receipt to the
licensed retailer's delivery employee electronically or in hard copy. The delivery request
receipt provided to the licensed retailer's delivery employee shall contain all of the
information required in section 15420, except for the date and time the delivery was
made, and the signature of the customer.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 114 of 229
(g) Immediately upon request by the Department or any law enforcement officer, the
licensed retailer's delivery employee shall provide:
(1) The delivery inventory ledger from the time the licensed retailer's delivery employee
left the licensed premises up to the time of the request;
(2) All delivery request receipts for cannabis goods carried by the delivery employee, in
the delivery vehicle, or any deliveries that have already been made to customers; and
(3) The log of all stops from the time the licensed retailer's delivery employee left the
licensed premises up to the time of the request.
(h) If a licensed retailer's delivery employee does not have any delivery requests to be
performed for a 30-minute period, the licensed retailer's delivery employee shall not
make any additional deliveries and shall return to the licensed premises. Required meal
breaks shall not count toward the 30-minute period.
(i) Upon returning to the licensed premises, all undelivered cannabis goods shall be
returned to the licensed retailer’s inventory and recorded within the track and trace
system in accordance with section 15049.3.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26067,
26068, 26070, 26090 and 26160, Business and Professions Code.
§15419. Cannabis Consumption During Delivery.
A licensed retailer’s delivery employees shall not consume cannabis or cannabis
products while delivering cannabis goods to customers.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26090, Business and Professions Code.
§15420. Delivery Request Receipt.
A licensed retailer shall prepare a hard copy or electronic delivery request receipt for
each delivery of cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The legal business name and license number of the licensed retailer;
(2) The first name and employee number of the licensed retailer's delivery employee who
delivered the order;
(3) The first name and employee number of the licensed retailer's employee who
prepared the order for delivery;
(4) The first name of the customer and a licensed retailer-assigned customer number for
the person who requested the delivery;
(5) The date and time the delivery request was made;
(6) The delivery address;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 115 of 229
(7) A detailed description of all cannabis goods requested for delivery. The description
shall include the weight, volume, or any other accurate measure of the amount of all
cannabis goods requested;
(8) The total amount paid for the delivery, including any taxes or fees, the cost of the
cannabis goods, and any other charges related to the delivery; and
(9) Upon delivery, the date and time the delivery was made, and the handwritten or
electronic signature of the customer who received the delivery.
(b) At the time of the delivery, the delivery employee of the retailer shall provide the
customer who placed the order with a hard or electronic copy of the delivery request
receipt. The delivery employee shall retain a hard or electronic copy of the signed
delivery request receipt for the licensed retailer's records.
(c) For the purposes of this section, an employee number is a distinct number assigned
by a licensed retailer to an employee that would allow the licensed retailer to identify the
employee in documents or records using the employee number rather than the
employee's full name. A licensed retailer shall be able to identify the employee
associated with each employee number upon request from the Department.
(d) For the purposes of this section, a customer number is a distinct number assigned by
a licensed retailer to a customer that would allow the licensed retailer to identify the
customer in documents or records using the customer number rather than the customer's
full name. A licensed retailer shall be able to identify the customer associated with each
customer number upon request from the Department.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26070, 26090 and 26160, Business and Professions Code.
§15421. Delivery Route.
While making deliveries of cannabis goods, a licensed retailer's delivery employee shall
only travel from the retailer's licensed premises to the delivery address; from one delivery
address to another delivery address; or from a delivery address back to the retailer's
licensed premises. A delivery employee of a licensed retailer shall not deviate from the
delivery path described in this section, except for necessary rest, fuel, or vehicle repair
stops, or because road conditions make continued use of the route unsafe, impossible,
or impracticable.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26090, Business and Professions Code.
§15422. Receiving Shipments of Inventory.
(a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed
distributor or licensed microbusiness authorized to engage in distribution.
(b) A licensed retailer shall accept shipments of cannabis goods only between the hours
of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 116 of 229
(c) During business hours, shipments of cannabis goods shall not enter the licensed
premises through an entrance or exit that is available for use by the public.
(d) A licensed retailer whose licensed premises only has one entryway may be exempt
from the requirements of subsection (c) of this section if the licensed retailer obtains
authorization from the local jurisdiction explicitly authorizing this activity. The licensed
retailer shall be required to provide this authorization to the Department upon request.
For this section to apply, the licensed premises must physically have only one entryway
and cannot have any other entryways.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26070, Business and Professions Code.
§15423. Inventory Documentation.
A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer
shall provide the Department with the record of inventory immediately upon request. A
licensed retailer shall keep a record of the following information for all cannabis goods
the licensed retailer has in its inventory:
(a) A description of each item such that the cannabis goods can easily be identified;
(b) An accurate measurement of the quantity of the item;
(c) The date and time the cannabis goods were received by the licensed retailer;
(d) The sell-by or expiration date provided on the package of cannabis goods, if any;
(e) The name and license number of the licensed distributor or licensed microbusiness
that transported the cannabis goods to the licensed retailer; and
(f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery
costs, and any other costs.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160,
Business and Professions Code.
§15424. Inventory Reconciliation.
(a) A licensed retailer shall be able to account for all of its inventory.
(b) In conducting an inventory reconciliation, a licensed retailer shall verify that the
licensed retailer's physical inventory is consistent with the licensed retailer's records
pertaining to inventory.
(c) The result of inventory reconciliation shall be retained in the licensed retailer's records
and shall be made available to the Department upon request.
(d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed
retailer shall notify the Department and law enforcement pursuant to section 15036 of
this division.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 117 of 229
(e) If a significant discrepancy as defined in section 15034 of this division is discovered
between a licensed retailer's physical inventory and the licensed retailer's inventory
records, the licensed retailer shall notify the Department and law enforcement pursuant
to section 15036 of this division.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160,
Business and Professions Code.
§15427. Retailer Premises-to-Retailer Premises Transfer.
(a) A licensee who holds multiple retail licenses may arrange for the transfer of cannabis
goods from one licensed retail premises to another licensed retail premises if both retail
licenses are held by the same sole proprietor or business entity.
(b) Cannabis goods transferred to a licensed retail premises under subsection (a) may be
sold by the licensed retailer receiving the cannabis goods only if the cannabis goods
comply with all requirements found in the Act and this division.
(c) The transportation of cannabis goods under this section must comply with all
requirements found within the Act and this division.
(d) Any movement of cannabis goods under this section shall be properly entered into
the track and trace system.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070,
Business and Professions Code.
Chapter 4. Microbusiness
§ 15500. Microbusiness.
(a) In order to hold a microbusiness license, a licensee must engage in at least three (3)
of the following commercial cannabis activities: cultivation, manufacturing, distribution,
and retail sale. License types created by the Department in regulation shall not be
considered qualifying commercial cannabis activities for purposes of obtaining a
microbusiness license, except for the Type N manufacturing license and the distributor
transport only license.
(b) An applicant for a microbusiness license shall indicate on the application for licensure
all commercial cannabis activities in which the applicant intends to engage.
(c) All cultivation, manufacturing, distribution, and retail activities performed by a licensee
under a microbusiness license shall occur on the same licensed premises.
(d) A holder of a microbusiness license engaged in cultivation shall comply with all the
rules and requirements applicable to the cultivation license type suitable for the
cultivation activities of the licensee.
(e) A holder of a microbusiness license engaged in manufacturing shall comply with all
the rules and requirements applicable to a Manufacturer 1 license in this division.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 118 of 229
(f) A holder of a microbusiness license engaged in distribution shall comply with all the
rules and requirements applicable to a distributor license in this division.
(g) A holder of a microbusiness license engaged in retail sale shall comply with all the
rules and requirements applicable to a retailer license, or a non-storefront retailer license
if retail sales are conducted by delivery only, in this division.
(h) A holder of a microbusiness license may only engage in the commercial cannabis
activity requested in the license application and approved by the Department at the time
the license is issued. If the holder of a microbusiness license wants to engage in an
additional commercial cannabis activity after the license is issued, the licensee shall
submit a request for a modification of the licensed premises pursuant to section 15027.
(i) A holder of a microbusiness license shall comply with all the security rules and
requirements applicable to the corresponding license type suitable for the activities of the
licensee.
(j) Areas of the licensed premises for manufacturing, cultivation, and distribution shall be
separated from the retail areas by a wall and all doors between the areas shall remain
closed when not in use.
(k) A suspension or revocation of a microbusiness licensee shall affect all commercial
cannabis activities allowed pursuant to that license.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26050, 26051.5 and 26070, Business and Professions Code.
Chapter 5. Cannabis Events
§15600. Cannabis Event Organizer License.
(a) To obtain a temporary cannabis event license, the event organizer must first apply for
and obtain a cannabis event organizer license.
(b) A cannabis event organizer licensed under this section shall comply with chapter 1
except for sections 15006, 15007, 15010, 15019, 15025, 15027, 15034, 15038, 15042,
15044, and 15046-15052.1.
(c) A cannabis event organizer licensee is not authorized or licensed to cultivate,
distribute, manufacture, or retail cannabis or cannabis products without first obtaining the
appropriate licenses or authorizations to engage in such commercial cannabis activities.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012 and 26200, Business and Professions Code.
§15601. Temporary Cannabis Event Requirements.
(a) A temporary cannabis event license authorizes a licensed cannabis event organizer
to hold a temporary cannabis event where the onsite sale and consumption of cannabis
goods is authorized at the location indicated on the license during the dates indicated on
the license.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 119 of 229
(b) Violations of the requirements applicable to temporary cannabis events may result in
disciplinary action against the cannabis event organizer license or any other licenses
held by a licensee participating in the temporary cannabis event and responsible for a
violation under this division or the Act.
(c) A temporary cannabis event license shall only be issued for a single day or up to 4
consecutive days. No temporary cannabis event license will be issued for more than 4
days.
(d) An application for a temporary cannabis event license shall be submitted to the
Department no less than 60 calendar days before the first day of the temporary cannabis
event.
(e) A temporary cannabis event may only be held at a county fair event, district
agricultural association event, or at another venue expressly approved by a local
jurisdiction for the purpose of holding a temporary cannabis event.
(f) A temporary cannabis event license shall not be issued for a premises that is licensed
for the sale of alcohol or tobacco.
(g) If the list of licensees and vendors participating in the temporary cannabis event
changes after the application is submitted or after the license is issued, the applicant
shall submit with the Licensee Notification and Request Form, Notifications and
Requests Regarding Regulatory Compliance, DCC-LIC-028 (New 2/22), incorporated
herein by reference, an updated list and an updated diagram, as required in section
15002.1(b)(5), to the Department no less than 72 hours before the event. Licensees not
on the list submitted to the Department shall not participate in the temporary cannabis
event. All employees of licensees participating in the event shall comply with the
employee badge requirements in section 15403 at all times while participating in the
temporary cannabis event and provide their badge to Department representatives upon
request.
(h) The licensed cannabis event organizer shall hire or contract for security personnel to
provide security services at the licensed temporary cannabis event. All security
personnel hired or contracted for by the licensee shall be at least 21 years of age,
licensed by the Bureau of Security and Investigative Services, and comply with chapters
11.4 and 11.5 of division 3 of the Business and Professions Code. Security personnel
shall be present on the licensed premises at all times cannabis goods are available for
sale and/or cannabis goods consumption is allowed on the licensed premises.
(i) A licensed cannabis event organizer shall maintain a clearly legible sign not less than
7 inches by 11 inches in size, reading “No Persons Under 21 Allowed” at or near each
public entrance to any area where the sale or consumption of cannabis goods is allowed.
The lettering of the sign shall be no less than 1 inch in height.
(j) All cannabis waste generated at a temporary cannabis event shall be collected and
disposed of in accordance with the requirements of section 17223. The licensed
cannabis event organizer may contract or arrange for the collection and disposal of
cannabis waste generated during the temporary cannabis event.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 120 of 229
(k) A licensed cannabis event organizer and all other licensees participating in a
temporary cannabis event are required to comply with section 15037 and all other
applicable requirements in the Act and this division pertaining to record keeping.
(l) The Department may require the event organizer and all participants to cease
operations without delay if, in the opinion of the Department or local law enforcement, it
is necessary to protect the immediate public health and safety of the people of the state.
Upon notification from the Department that the event is to cease operations, the event
organizer shall immediately stop the event and all participants shall be removed from the
premises within the time frame provided by the Department.
(m) Upon notification from the Department, the event organizer shall immediately expel
from the event any person selling cannabis goods without a license from the Department
that authorizes the participant to sell cannabis goods. The event organizer or their
representative shall remain with the person being expelled from the premises at all times
until he or she vacates the premises. If the person does not vacate the premises, the
Department may inform the event organizer that the event must cease operations. Upon
notification from the Department that the event is to cease operations, the event
organizer shall immediately stop the event and all participants shall be removed from the
premises within the time frame provided by the Department.
(n) The event organizer shall designate a limited-access area that can only be accessed
by the licensee and the Department. Upon request, the event organizer shall make the
area available to the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26200, Business and Professions Code.
§15602. Temporary Cannabis Event Sales.
(a) Only persons age 21 or older may purchase and consume cannabis goods at a
temporary cannabis event. Prior to selling cannabis goods to a customer, the licensee
making the sale shall confirm, using valid identification as specified in section 15404, the
age and identity of the customer.
(b) All sales of cannabis goods at a temporary cannabis event must occur in a retail area
as designated in the premises diagram pursuant to section 15002.1(b)(5).
(c) Each sale at a temporary cannabis event shall be performed by a licensed retailer, a
licensed non-storefront retailer, or licensed microbusiness that is authorized to engage in
retail sales. The cannabis event organizer may also sell cannabis goods at the temporary
cannabis event if the organizer separately holds a license authorizing the retail sale of
cannabis goods.
(1) Licensed retailers or licensed microbusinesses shall only conduct sales activities
within their specifically assigned area, identified in the diagram of the physical layout of
the temporary cannabis event.
(2) Mobile sales activities via wagon, cart, or similar means are prohibited at the
temporary cannabis event site.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 121 of 229
(d) Licensed retailers or licensed microbusinesses must prominently display their
temporary cannabis event location number and state license within plain sight of the
public.
(e) All sales at a temporary cannabis event shall occur on the dates stated on the license
and shall occur at the location stated on the license. All onsite sales of cannabis goods
must comply with the hours of operation requirements of section 15403.
(f) Sale of alcohol or tobacco shall not be allowed on the licensed temporary cannabis
event premises.
(g) The cannabis goods sold onsite at a temporary cannabis event shall be transported
by a licensed distributor or licensed microbusiness in compliance with the Act and this
division. All shipments of cannabis goods and non-cannabis goods intended for sale at a
temporary cannabis event must be checked by the temporary cannabis event organizer
staff to prevent prohibited items, such as alcohol and tobacco, from entering the licensed
premises.
(h) Except small amounts of cannabis goods used for display, all cannabis goods for sale
at a temporary cannabis event shall be stored in a secure, locked container that is not
accessible to the public. Cannabis goods being stored by a licensee at a temporary
cannabis event shall not be left unattended. Licensees may share the secure, locked
container; however, each licensee using the container shall be held responsible for any
violations of this section and subject to disciplinary action.
(i) All cannabis goods made available for sale at a cannabis event shall comply with all
requirements for the retail sale of cannabis goods within the Act and section 15406.
(j) All cannabis goods made available for sale at a temporary cannabis event shall
comply with all track and trace requirements within the Act and this division.
(k) All cannabis goods used for display at a temporary cannabis event shall comply with
the requirements of section 15405.
(l) All cannabis goods sold at a temporary cannabis event shall comply with section
15413.
(m) All customer returns of cannabis goods at a temporary cannabis event shall comply
with section 15410.
(n) The daily sales limits under section 15409 apply to all sales made at a temporary
cannabis event.
(o) A licensed retailer shall only provide free cannabis goods to a person at a temporary
cannabis event if the licensed retailer complies with all requirements of section 15411.
(p) The licensed cannabis event organizer shall be responsible for ensuring that all rules
and requirements for the onsite sale of cannabis goods are followed.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 122 of 229
(q) Any compensation paid from a licensed retailer to a licensed cannabis event organizer
for participation in a temporary cannabis event shall not be determined based on, or be
contingent on, the sale of cannabis goods.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070
and 26200, Business and Professions Code.
§15603. Temporary Cannabis Event Consumption.
(a) Access to the area where cannabis consumption is allowed shall be restricted to
persons 21 years of age or older.
(b) The event organizer licensee shall ensure that cannabis consumption is not visible
from any public place or non-age-restricted area.
(c) Consumption of alcohol or tobacco shall not be allowed on the licensed premises.
(d) All requirements for onsite cannabis consumption imposed by the relevant local
jurisdiction shall be followed and smoking of cannabis goods shall be prohibited in any
areas where smoking is prohibited by law.
(e) The licensed cannabis event organizer, who holds the temporary cannabis event
license, shall be responsible for ensuring that all rules and requirements for the onsite
consumption of cannabis goods are followed.
(f) A licensed cannabis event organizer and all other licensees participating in a
temporary cannabis event are required to follow all applicable requirements in this
division pertaining to record keeping and waste management.
Authority: Section 26013, Business and Professions Code. Reference: Section 26200,
Business and Professions Code.
§15603.1. Participation in Temporary Cannabis Events by Non-Retail Licensees.
(a) Licensees who are not retailers may participate in licensed temporary cannabis
events and may display cannabis or cannabis products in accordance with the following:
(1) Cannabis or cannabis products displayed shall not exceed the following amounts:
(A) 85.5 grams of non-concentrated cannabis.
(B) 24 grams of cannabis concentrate.
(C) 18 immature plants.
(D) 21 seeds.
(2) Cannabis or cannabis products may be provided to attendees of the event for
inspection and educational purposes only. Cannabis and cannabis products used for
display shall comply with the provisions in subsections (b) and (c) of section 15405.
(3) Cannabis and cannabis products for display purposes by non-retail licensees only
may be brought to the licensed event by the licensee or their employees. However, no
individual shall transport an amount of cannabis or cannabis products that exceeds the
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 123 of 229
possession limits established in section 11362.1 of the Health and Safety Code unless
such individual is a licensed distributor or their employee transporting in a distribution
vehicle.
(b) Licensees may display non-cannabis containing items such as cannabis accessories,
packaging materials, promotional materials, and branded merchandise.
(c) Licensees may sell branded merchandise and cannabis accessories in compliance
with local and state laws governing the sale of goods.
Authority: Section 26013, Business and Professions Code. Reference: Section 26013,
Business and Professions Code.
§15604. Informational or Educational Cannabis Events.
(a) Informational or educational cannabis events where no sales of cannabis goods or
consumption of cannabis goods is occurring are not required to be licensed by the
Department.
(b) A person may display cannabis or cannabis products for informational or educational
purposes consistent with Health and Safety Code sections 11362.1 and 11362.77.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26013, Business and Professions Code; and Sections 11362.1 and 11362.77, Health
and Safety Code.
Chapter 6. Testing Laboratories
Article 1. Chapter Definitions
§15700. Definitions.
In addition to the definitions in section 15000, the following definitions apply to this
chapter.
(a) “Acceptance criteria” means the specified limits placed on the characteristics of an
item or method that are used to determine data quality.
(b) “Accreditation body” means an impartial non-profit organization that operates in
conformance with the International Organization for Standardization (ISO) / International
Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International
Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for
Testing.
(c) “Accredited college or university” means a college or university accredited by a
regional or national accrediting agency that is an accreditor recognized by the Secretary
of the US Department of Education.
(d) “Action level” means the threshold value that provides the criterion for determining
whether a sample passes or fails an analytical test.
(e) “Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin to
be identified or measured.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 124 of 229
(f) “Analytical batch” means a set of no more than 20 samples that is prepared together
for the same analysis and are prepared with laboratory quality control (LQC) samples.
(g) “Analytical method” means a technique used qualitatively or quantitatively to
determine the composition of a sample or a microbial contamination of a sample.
(h) “Analytical sequence” means a group of samples that are analyzed sequentially using
the same instrument calibration curve.
(i) “Cannabinoid” means a class of diverse chemical compounds derived from a cannabis
plant.
(j) “CAS number” means the unique numerical identifier assigned to every chemical
substance by Chemical Abstracts Service, a division of the American Chemical Society.
(k) “CBDA” means cannabidiolic acid, CAS number 1244-58-2.
(l) “CBG” means cannabigerol, CAS number 25654-31-3.
(m) “CBN” means cannabinol, CAS number 521-35-7.
(n) “Certificate of accreditation” means a document issued by an accreditation body that
attests to the laboratory’s competence to carry out specific testing analysis.
(o) “Certified reference material” means a reference material in cannabis or similar non-
cannabis matrix prepared at a known concentration by a certifying body or a party
independent of the laboratory with ISO/IEC 17034 accreditation. The laboratory will
calculate the percent recovery of the certified reference material based on measured
concentration relative to the known concentration.
(p) “Chain of Custody” (COC) means the chronological documentation that records the
sequence of custody, control, transfer, analysis, and disposal of a sample.
(q) “Coefficient of Determination” (commonly denoted as “r
2
”) means a statistical
measure that determines how well the regression approximates the actual data points in
the calibration curve, with a regression of 1 being a perfect fit.
(r) “Continuing calibration verification” (CCV) means a type of quality control sample that
includes each of the target method analytes that is a mid-range calibration standard
which checks the continued validity of the initial calibration of the instrument.
(s) “Corrective action” means an action taken by the laboratory to resolve, and prevent
from recurrence, a problem with the technical operations of the laboratory.
(t) “Exclusivity” means the specificity of the test method for validating microbial testing
methods. It evaluates the ability of the method to distinguish the target organisms from
similar but genetically distinct non-target organisms.
(u) “Foreign material” means any filthy, putrid, or decomposed substance including hair,
insects, excreta, or related adulterant that may be hazardous or cause illness or injury to
the consumer.
(v) “Frequency” means the number of items occurring in each category. Frequency may
be determined by analytical method or laboratory specific requirements for accuracy,
precision of the analysis, or statistical calculation.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 125 of 229
(w) “Good laboratory practice” (GLP) means a system of management controls for
laboratories to ensure the uniformity, consistency, reliability, reproducibility, quality, and
integrity of analyses performed by the testing laboratory.
(x) “Inclusivity” means, related to microbiological method validation, the sensitivity of the
test method. It evaluates the ability of the test method to detect a wide range of target
organisms by a defined relatedness.
(y) “Inhalable” means consumable through the lungs.
(z) “Initial Calibration Verification” (ICV) means a solution of each of the target method
analytes of known concentration that is obtained from a source external to the laboratory
and different from the source of calibration standards.
(aa) “ISO/IEC” means the joint technical committee of the International Organization for
Standardization (ISO) and the International Electrotechnical Commission (IEC).
(bb) “ISO/IEC 17025” means the general requirements specified by the ISO/IEC for the
competence of testing and calibration laboratories.
(cc) “ISO/IEC 17034” means the general requirements established by the ISO/IEC for the
competence of reference material producers.
(dd) “ISO/IEC 17043” means the general requirements established by the ISO/IEC for
proficiency testing.
(ee) “Laboratory” means “testing laboratory” as defined at Business and Professions
Code section 26001(av).
(ff) “Laboratory Control Sample” (LCS) means a blank matrix to which known
concentrations of each of the target method analytes are added. The spiked
concentration must be at a mid-range concentration of the calibration curve for the target
analytes. The LCS is analyzed in the same manner as the representative sample.
(gg) “Laboratory replicate sample” means a sub-sample taken of the representative
sample used for laboratory quality control purposes to demonstrate reproducibility. It is
prepared and analyzed in the identical manner as the representative sample. The results
from replicate analyses are used to evaluate analytical precision.
(hh) “Laboratory employee” means any person directly employed by the laboratory for
wages, salary, barter, or trade by the laboratory and who is not employed by any other
licensee under the Act except for another testing laboratory. “Laboratory employee” does
not mean an independent contractor, third party entity, or any other entity acting on
behalf of the laboratory.
(ii) “Laboratory quality assurance” means the set of operating principles that enable
laboratories to produce defensible data of known accuracy and precision and includes
employee training, equipment preventative maintenance procedures, calibration
procedures, and quality control testing, among other things.
(jj) “Limit of detection” (LOD) means the lowest quantity of a substance or analyte that
can be distinguished from the absence of that substance within a stated confidence limit.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 126 of 229
(kk) “Limit of quantitation” (LOQ) means the minimum concentration of an analyte in a
specific matrix that can be reliably quantified while also meeting predefined goals for bias
and imprecision.
(ll) “Linear regression” means the determination, in analytical chemistry, of the best linear
equation for calibration data to generate a calibration curve. The concentrate of an
analyte in a sample can then be determined by comparing a measurement of the
unknown to the calibration curve. A linear regression uses the following equation:
y = mx + b; where m = slope, b = intercept
(mm) “Matrix” means the substances that are present in a sample except for the
analyte(s) of interest.
(nn) “Matrix spike sample” means a sample prepared by adding a known quantity of each
of the target analyte to a sample matrix or to a matrix that is as closely representative of
the matrix being analyzed as possible. The spiked concentration must be at a mid-range
concentration of the calibration curve for the target analytes.
(oo) “Method Blank” means an analyte free matrix to which all reagents are added in the
same volumes or proportions as used in the sample preparation and is processed in
exactly the same manner as the samples.
(pp) “Moisture content” means the percentage of water in a sample, by weight.
(qq) “Non-target organism” means an organism that the test method or analytical
procedure is not testing for and can be used in evaluating the specificity of a test method.
(rr) “Percent recovery” means the percentage of a measured concentration relative to the
added (spiked) concentration in a reference material or matrix spike sample. A laboratory
shall calculate the percent recovery by dividing the sample result by the expected result
then multiplying the quotient by 100.
(ss) “Practical experience” means experience performing scientific analytical tests in a
laboratory setting using equipment, instruments, kits, and materials routinely found in a
laboratory. “Practical experience” includes experience in any type of laboratory setting
and is not limited to cannabis-specific laboratories.
(tt) “Proficiency test” means an evaluation of a laboratory’s performance against pre-
established criteria by means of interlaboratory comparisons of test measurements.
(uu) “Proficiency test sample” means a sample that is prepared by a party independent of
the testing laboratory with the ISO/IEC 17043 accreditation, where the concentration and
identity of an analyte is known to the independent party, but is unknown to the testing
laboratory and testing laboratory employees.
(vv) “Quadratic regression” means the determination, in analytical chemistry, of the best
parabola equation for calibration data to generate a calibration curve. The concentrate of
an analyte in a sample can then be determined by comparing a measurement of the
unknown to the calibration curve. A quadratic regression uses the following equation:
y = ax
2
+ bx + c; where a, b, and c are numerical coefficients
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 127 of 229
(ww) “Quality control” means the set of measures implemented within an analytical
procedure to ensure that the measurement system is operating in a state of statistical
control for which errors have been reduced to acceptable levels.
(xx) “Quality control sample” means a sample that is produced and used by a laboratory
for the purpose of assuring the quality of the data and results. Quality control samples
include blank samples, matrix spike samples, laboratory control samples, replicate
samples, and reference material samples.
(yy) “Reagent” means a compound or mixture added to a system to cause a chemical
reaction or test if a reaction occurs. A reagent may be used to tell whether a specific
chemical substance is present by causing a reaction to occur with the chemical
substance.
(zz) “Reference material” means material containing a known concentration of an analyte
of interest that is in solution or in a homogeneous matrix.
(aaa) “Reference method” means the method by which the performance of an alternate
method is measured or evaluated.
(bbb) “Relative percent difference” (RPD) means the comparative statistic that is used to
calculate precision or random error. RPD is calculated using the following equation:
RPD = │ (representative sample measurement – replicate sample measurement)
/ ([representative sample measurement + replicate sample measurement] / 2) ×
100%
(ccc) “Relative standard deviation” (RSD) means the standard deviation expressed as a
percentage of the means recovery. RSD is calculated using the following equation:
RSD = (s / x) × 100%; where s = standard deviation and x = mean
(ddd) “Representative” means a small quantity of the batch whose characteristics
represent, as accurately as possible, the entire batch, thus allowing the results to be
generalized.
(eee) “Representative sample” means a sample that is comprised of several sample
increments of cannabis or cannabis products that are collected from a batch for testing.
(fff) “Requester” means the person who submits a request to the laboratory for testing of
cannabis or cannabis products from an entity licensed under the Act.
(ggg) “Reserve sample” means any portion of a representative sample that was not used
in the testing process.
(hhh) “Sample” means a representative part of, or a single item from, a batch which is
comprised of several sample increments.
(jjj) “Sample increment” means a portion of a batch that, together with other increments,
makes up the sample.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 128 of 229
(kkk) “Sampler” means the laboratory employee responsible for obtaining samples of
cannabis or cannabis products from a licensed distributor or licensed microbusiness
authorized to engage in distribution.
(lll) “Sanitize” means to sterilize, disinfect, or make hygienic.
(mmm) “Scope of accreditation” means the tests or types of tests performed, materials or
products tested, and the methods used for testing cannabis or cannabis products for
which the accreditation has been granted.
(nnn) “Standard operating procedure” (SOP) means a written document that provides
detailed instructions for the performance of all aspects of an analysis, operation, or
action.
(ooo) “Target organism” means an organism that is being tested for in an analytical
procedure or test method.
(ppp) “THCA” means tetrahydrocannabinolic acid, CAS number 23978-85-0.
(qqq) “Total CBD” means the sum of CBD and CBDA. Total CBD is calculated using the
following equation:
Total CBD concentration (mg/g) = (CBDA concentration (mg/g) x 0.877) + CBD
concentration (mg/g)
(rrr) “Total THC” means the sum of THC, delta 8 THC, and THCA. Total THC is
calculated using the following equation:
Total THC (mg/g) = [(delta 8-THCA concentration (mg/g) + delta 9-THCA
concentration (mg/g)) x 0.877] + [delta 8-THC concentration (mg/g) + delta 9-THC
concentration (mg/g)]
(sss) “Validation” means the confirmation by examination and objective evidence that the
requirements for a specific intended use or analytical method are fulfilled.
(ttt) “Water activity” means the measure of the quantity of water in a product that is
available and therefore capable of supporting bacteria, yeasts, and fungi and which is
reported in
units A
w
.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013
and 26100, Business and Professions Code.
Article 2. Laboratory License
§15701. General Laboratory License Requirements.
(a) A licensed laboratory shall maintain ISO/IEC 17025 accreditation for the testing of the
following:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 129 of 229
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(b) Each testing laboratory licensed premises shall have ISO/IEC 17025 accreditation.
(c) A licensed laboratory shall retain, and make available to the Department upon
request, all records associated with the licensee’s ISO/IEC 17025 certificate of
accreditation.
(d) A licensed testing laboratory may test items not regulated by this division if they
comply with the laws governing the testing of such items. A licensed testing laboratory
shall maintain separate and distinct records of their activities regulated by this division
and their activities that are subject to other laws.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012
and 26100, Business and Professions Code.
§15702. Laboratory License Application.
In addition to the information required in section 15002, an application for a testing
laboratory license includes the following:
(a) A valid certificate of accreditation, issued by an accreditation body, that attests to the
laboratory’s competence to perform testing, including all the required analytes for the
following test methods:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(b) Standard operating procedures for the following testing methods:
(1) Cannabinoids;
(2) Foreign material;
(3) Heavy metals;
(4) Microbial impurities;
(5) Moisture content and water activity;
(6) Mycotoxins;
(7) Residual pesticides;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 130 of 229
(8) Residual solvents and processing chemicals; and
(9) If tested, terpenoids.
(c) Method validation reports for the following testing methods:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents; and processing chemicals; and
(7) If tested, terpenoids.
(d) Standard operating procedures for the sampling of cannabis or cannabis products.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26050, 26055, 26102 and 26104, Business and Professions Code.
§15703. Interim Testing Laboratory License.
(a) An applicant may apply for an interim license prior to receiving ISO/IEC 17025
accreditation provided that the commercial cannabis business meets all other licensure
requirements for a testing laboratory and submits to the Department an application in
compliance with section 15002 and an attestation that the commercial cannabis business
has or intends to seek ISO/IEC 17025 accreditation for all testing methods required by
this division.
(b) An interim testing laboratory license shall be valid for 12 months. The annual license
fee for an interim license shall be determined pursuant to the requirements in section
15014 for determining the annual license fee for a testing laboratory license.
(c) To timely renew an interim license, a completed license renewal form and the annual
renewal license fee pursuant to section 15014 shall be received by the Department from
the licensee no earlier than 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
an interim license as required.
(d) In the event the license is not renewed prior to the expiration date, the licensee must
not test any commercial cannabis or cannabis products until the license is renewed.
(e) A licensee may submit a license renewal form up to 30 calendar days after the
license expires. Any late renewal form will be subject to a late fee equal to 50 percent of
the applicable licensing fees required by subsection (c).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 131 of 229
(f) The license renewal application shall contain the following:
(1) The name of the licensee. For licensees who are individuals, the applicant shall
provide both the first and last name of the individual. For licensees who are business
entities, the licensee shall provide the legal business name of the commercial cannabis
business;
(2) The license number and expiration date;
(3) The licensee’s mailing address and licensed premises address; and
(4) An attestation that all information provided to the Department in the original
application under section 15002 or subsequent notification under sections 15023 and
15024 is accurate and current.
(g) The Department may renew an interim license for an initial renewal period of 12
months.
(h) After one renewal, the Department may renew the interim license for additional 12-
month periods if the licensee has submitted an application for the ISO/IEC 17025
accreditation. In addition to the information required for a renewal form pursuant to
subsection (f), any renewal request pursuant to this section shall also include an
attestation that the licensee’s application for each ISO/IEC 17025 is pending with the
accrediting body, the name of the accrediting body, and the date the application was
submitted to the accrediting body.
(i) The licensee shall notify the Department if the application for each ISO/IEC 17025
accreditation is granted or denied within 1 business day of receiving the decision from
the accrediting body. The licensee shall submit to the Department the information
required, on the Licensee Notification and Request Form, Notifications and Requests
Regarding Testing Laboratories, DCC-LIC-029 (New 2/22), which is incorporated herein
by reference. If the accrediting body grants or denies the licensee’s application for any
ISO/IEC 17025 accreditation before the expiration of the interim license, the Department
may terminate the interim license at that time.
(j) The Department may revoke an interim license at any time.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26031, 26050 and 26102, Business and Professions Code.
Article 3. Sampling Cannabis and Cannabis Products
§15704. Sampling Standard Operating Procedures.
(a) The licensed laboratory shall develop and implement a sampling standard operating
procedure (SOP) that describes the laboratory’s method for obtaining representative
samples of cannabis or cannabis products. The licensed laboratory shall use and submit
to the Department Sampling – Standard Operating Procedures, DCC-LIC-021 (Amended
2/22), which is incorporated herein by reference.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 132 of 229
(b) The licensed laboratory shall retain a copy of the sampling SOP on the licensed
laboratory premises and ensure that the sampling SOP is accessible to the sampler
during sampling.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26102, 26104 and 26110, Business and Professions Code.
§15705. General Sampling Requirements.
(a) The licensed laboratory that obtains a representative sample from a licensed
distributor or licensed microbusiness shall perform all the required testing at one licensed
laboratory premises.
(b) The licensed laboratory may obtain and analyze samples only from cannabis
products batches in final form as required by Business and Professions Code section
26100.
(c) The licensed laboratory sampler shall collect a representative sample from each
batch following the procedures specified in the laboratory's sampling standard operating
procedure(s).
(d) The licensed laboratory shall ensure that the sample is transported and subsequently
stored at the licensed laboratory premises in a manner that prevents degradation,
contamination, commingling, and tampering. If the cannabis or cannabis products specify
on the label how the cannabis or cannabis products shall be stored, the laboratory shall
store the sample as indicated on the label.
(e) The licensed laboratory shall complete a chain of custody form for each sample that
the laboratory collects and analyzes.
(f) Once a representative sample has been obtained for regulatory compliance testing,
the licensed laboratory that obtained the sample must complete the regulatory
compliance testing.
(g) If a licensed laboratory is unable to competently complete the regulatory compliance
testing after sampling and before a COA is issued, the licensed distributor or
microbusiness authorized to engage in distribution who arranged for the testing of the
batch may request approval from the Department to have the impacted batch re-sampled
and tested by another licensed laboratory.
(1) The request shall be made in writing via email to testingla[email protected]a.gov and
shall include all of the following:
(A) The name and license number of the distributor;
(B) The batch numbers;
(C) The type and quantity of cannabis or cannabis products;
(D) The name and license number of the laboratory that took the initial sample and is not
able to competently complete the regulatory compliance testing;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 133 of 229
(E) The name and license number of the laboratory proposed to re-sample and complete
the regulatory compliance testing for the batch; and
(F) The reason why the laboratory that initially took the sample cannot competently
complete the regulatory compliance testing.
(2) The Department will review the request and determine if the licensed laboratory that
initially took the sample is unable to competently complete the regulatory compliance
testing. If the Department determines that the licensed laboratory is unable to
competently complete the regulatory compliance testing, the Department, in its
discretion, may approve the request in whole or part and set conditions for the re-
sampling and testing.
(3) No re-sampling of any batch shall occur prior to the licensed distributor or licensed
microbusiness authorized to engaged in distribution receiving written approval from the
Department.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15706. Chain of Custody (COC).
(a) The licensed laboratory shall develop and implement a COC protocol to ensure
accurate documentation is recorded for the transport, handling, storage, and destruction
of samples.
(b) The COC protocol shall require the use of a COC form. The sampler shall use a COC
to record the following information for each sampled batch:
(1) Laboratory’s name, licensed premises address, and license number;
(2) Date and time sampling started and ended;
(3) Licensed distributor or licensed microbusiness’ name, licensed premises address,
and license number;
(4) Licensed cultivator’s, licensed manufacturer’s, licensed distributor’s, or licensed
microbusiness’ name, licensed premises address, and license number;
(5) Batch number of the batch from which the representative sample was obtained and
assigned unique sample identifier;
(6) Sample matrix;
(7) Total batch size, by weight, or unit count;
(8) Total weight, or unit count of the representative sample;
(9) Sampling conditions or problems encountered during the sampling process, if any;
(10) Printed name and signature of the licensed distributor or licensed microbusiness’
authorized to engage in distribution employee; and
(11) Printed name and signature of the sampler.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 134 of 229
(c) Each time a sample changes custody between licensees, is transported, or is
destroyed, the date, time, and the names and signatures of persons involved in these
activities shall be recorded on the COC form.
(d) Once the custody of the sample changes between licensees, the COC form for that
change of custody may not be altered.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26102, 26104 and 26110, Business and Professions Code.
§ 15707. Harvest Batch Sampling.
(a) The sampler shall obtain a representative sample from each prepacked or unpacked
harvest batch. The representative sample must weigh 0.35% of the total harvest batch
weight.
(b) A sampler may collect a representative sample greater than 0.35% of the total
harvest batch weight of a prepacked or unpacked harvest batch if necessary to perform
the required testing or to ensure that the samples obtained are representative.
(c) The prepacked or unpacked harvest batch from which a sample is obtained shall
weigh no more than 50.0 pounds. Laboratory analyses of a sample collected from a
harvest batch weighing more than 50.0 pounds shall be deemed invalid and the harvest
batch from which the sample was obtained shall not be released for retail sale.
(d) When the sampler obtains a representative sample from an unpacked harvest batch,
the sampler shall do all the following:
(1) Collect the number of sample increments relative to the unpacked harvest batch size
as listed in the following table;
(2) Obtain sample increments from random and varying locations of the unpacked
harvest batch, both vertically and horizontally. To the extent practicable, the sample
increments obtained from an unpacked harvest batch shall be of equal weight; and
(3) To the extent practicable, collect an equal number of sample increments from each
container if the unpacked harvest batch is stored in multiple containers.
Unpacked Harvest Batch Size (pounds)
Number of Increments (per sample)
≤ 10.0
8
10.1 – 20.0
16
20.1 – 30.0
23
30.1 – 40.0
29
40.1 – 50.0
34
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 135 of 229
§15708. Cannabis Product Batch and Pre-Roll Sampling.
(a) The sampler shall obtain a representative sample from each cannabis product batch
or pre-roll batch.
(b) The sampler may collect a greater number of sample increments if necessary to
perform the required testing or to ensure that the samples obtained are representative.
(c) The cannabis product batch or pre-roll batch from which a representative sample is
obtained shall contain no more than 150,000 units. Laboratory analyses of a sample
collected from a cannabis product batch containing more than 150,000 units shall be
deemed invalid and the cannabis product batch or pre-roll batch from which the
representative sample was obtained shall not be released for retail sale.
(d) The sampler shall obtain a representative sample of a cannabis product or pre-roll
batch by collecting, at minimum, the number of sample increments relative to the batch
size as listed in the following table. Each sample increment consists of 1 packaged unit.
Cannabis Product or Pre-roll Batch
Size (units)
Number of Sample Increments (per
sample)
≤ 50
2
51 – 150
3
151 – 500
5
501 – 1,200
8
1,201 – 3,200
13
3,201 – 10,000
20
10,001 – 35,000
32
35,001 – 150,000
50
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
§15709. Laboratory Transportation of Cannabis and Cannabis Products Samples.
(a) The following requirements apply when a licensed testing laboratory transports
cannabis or cannabis products samples:
(1) While transporting cannabis or cannabis products samples, a licensed testing
laboratory employee shall ensure the cannabis or cannabis products are not visible to the
public. Cannabis or cannabis products shall be stored in a secure, fully enclosed trunk
that cannot be accessed from inside the vehicle, or in a secured area or compartment
within the interior of the vehicle. A “secured area” is defined as an area where solid or
locking metal partitions, cages, or high-strength shatterproof acrylic can be used to
create a secure compartment in the fully enclosed vehicle. The secured area may be
comprised on three sides by any part of the body of the vehicle, provided the parts of the
vehicle used for the purposes of this section are shatterproof and are not made of glass.
(2) While left unattended, vehicles and trailers shall be locked and secured.
(3) The licensed laboratory shall not leave a vehicle or trailer containing cannabis or
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 136 of 229
cannabis products samples unattended in a residential area or parked overnight in a
residential area.
(4) The licensed laboratory shall ensure that any vehicle or trailer transporting cannabis
or cannabis products samples has an alarm system.
(5) The licensed laboratory shall ensure that packages or containers holding cannabis or
cannabis products samples are neither tampered with nor opened during transport.
(6) The licensed laboratory transporting cannabis or cannabis products samples shall
only travel between licensees for whom the laboratory is conducting regulatory
compliance testing or quality assurance testing. A laboratory shall not deviate from the
travel requirements described in this section, except for necessary rest, fuel, or vehicle
repair stops.
(7) The licensed laboratory may transport multiple cannabis or cannabis products
samples obtained from multiple licensees at once.
(8) Vehicles or trailers transporting cannabis or cannabis products samples are subject to
inspection by the Department at any licensed premises or during transport at any time.
(9) No person under the age of 21 years old shall be in a vehicle or trailer transporting
cannabis or cannabis products samples.
(10) Only an employee of the licensed laboratory or security personnel who meets the
requirement of section 15045 shall be in a vehicle while transporting cannabis or cannabis
products samples.
(b) Upon request, the licensed laboratory shall provide the following required transport
vehicle information to the Department:
(1) The certificate of ownership or registration card issued by the California Department
of Motor Vehicles for each vehicle used to transport cannabis or cannabis products
samples;
(2) The year, make, model, license plate number, and numerical Vehicle Identification
Number (VIN) for each vehicle or trailer used to transport cannabis or cannabis products
samples; and
(3) Proof of insurance for each vehicle used to transport cannabis or cannabis products
samples.
(c) All vehicles and trailers used for transportation shall be owned or leased, in
accordance with the Vehicle Code, by the licensee. The licensee is not required to be the
sole owner or lessor of the vehicle or trailer and all owners and lessors may use the
vehicle for non-commercial cannabis activity.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26102, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 137 of 229
§15710. Laboratory Receipt of Samples Obtained from a Distributor or
Microbusiness.
(a) The licensed laboratory may accept and analyze a sample from a licensed distributor
or licensed microbusiness authorized to engage in distribution for the required testing
under section 15714 only if there is an accompanying COC form for the sample.
(b) The licensed laboratory employee who receives the sample shall date, print, and sign
their name on the accompanying sample COC.
(c) The licensed laboratory shall not analyze a sample obtained from a licensed distributor
or licensed microbusiness authorized to engage in distribution, and the batch from which
the sample was obtained may not be released for retail sale, if any of the following occur:
(1) The sample is received at the laboratory without the requisite COC form;
(2) The tamper-evident material is broken prior to the sample being received at the
laboratory; or
(3) There is evidence of sample commingling, contamination, degradation, or a related
occurrence rendering the sample unusable for analytical testing when the sample is
received at the laboratory.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
Article 4. Standard Operating Procedures
§15711. Laboratory Analyses Standard Operating Procedures.
(a) The licensed laboratory shall develop, implement, and maintain written standard
operating procedures (SOP) for sample preparation and each required test method. The
licensed laboratory shall use and submit to the Department the following forms which are
incorporated by reference:
(1) Sample Preparation – Standard Operating Procedures, Form DCC-LIC-022
(Amended 2/22), which is incorporated herein by reference; and
(2) Test Methods – Standard Operating Procedures, Form DCC-LIC-023 (Amended
2/22), which is incorporated herein by reference.
(b) The licensed laboratory shall keep each SOP at the licensed laboratory premises and
ensure that each SOP is accessible to laboratory employees during operating hours.
(c) The licensed laboratory shall make each SOP available for inspection by the
Department upon request, as well as any other SOPs associated with the licensee’s
ISO/IEC 17025 certificate of accreditation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26100, 26102, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 138 of 229
§15712. Test Methods.
(a) The laboratory shall develop, implement, and validate test methods for the analyses
of samples as required under this division.
(b) To the extent practicable, the laboratory test methods shall comport with the following
guidelines:
(1) US Food and Drug Administration’s Bacterial Analytical Manual, 2016;
(2) AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC
International, 20th Edition, 2016; and
(3) United States Pharmacopeia and the National Formulary’s Methods of Analysis for
Contaminant Testing, 2016.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26102, 26104 and 26110, Business and Professions Code.
§15712.1. Cannabinoid Test Method for Dried Flower, Including Non-Infused Pre-
Rolls.
(a) Notwithstanding section 15712, a licensed laboratory shall utilize the cannabinoid
test method required by this section and shall not utilize any other cannabinoid test
method for the purpose of regulatory compliance testing and reporting results for dried
flower, including non-infused pre-rolls. A licensed laboratory is not required to use the
cannabinoid test method required by this section for cannabis products, including infused
pre-rolls.
(b) The licensed laboratory shall use Standard Operating Procedures: Determination of
Cannabinoids Concentration by High Performance Liquid Chromatography (HPLC) for
Dried Flower, including Non-Infused Pre-Rolls (New 4/10/2023), which is incorporated by
reference herein, to perform the cannabinoid testing required by section 15724.
(c) The cannabinoid test method identified in subsection (b) shall not be altered by the
licensed laboratory.
(d) Notwithstanding the requirements of section 15724(a), the licensed laboratory shall
analyze the sample size of the representative sample as specified in the cannabinoid test
method identified in subsection (b).
(e) Prior to using the cannabinoid test method identified in subsection (b), the licensed
laboratory shall perform a method verification of the cannabinoid test method, in
accordance with section 15712.2, to demonstrate that the laboratory is capable of
meeting the cannabinoid test method’s performance specifications.
(f) The licensed laboratory is not required to provide the Department with a validation
report of the cannabinoid test method pursuant to sections 15702(c)(1) and 15713(d) for
the cannabinoid test method identified in subsection (b).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 139 of 229
(g) The licensed laboratory shall provide the Department with its standard operating
procedures implementing the cannabinoid test method identified in subsection (b) in
accordance with the requirements of sections 15702(b) and 15711(a). The standard
operating procedures shall be submitted with the verification report required by section
15712.2 prior to use of the cannabinoid test method for regulatory compliance testing.
(h) The licensed laboratory shall commence utilizing the cannabinoid test method
identified in subsection (b) no later than January 1, 2024.
(i) The licensed laboratory may test for additional cannabinoid analytes beyond those
specified in section IV(A) and in additional matrices beyond those covered in the
cannabinoid test method identified in subsection (b). The licensed laboratory shall
provide a method validation for additional cannabinoid analytes and additional matrices
in accordance with section 15713.
Authority: Sections 26013 and 26100, Business and Professions Code. Reference:
Section 26100, Business and Professions Code.
§15712.2. Verification of Cannabinoid Test Method for Dried Flower, Including Non-
Infused Pre-Rolls.
(a) Prior to using the cannabinoid test method identified in section 15712.1(b) for
regulatory compliance testing, each licensed laboratory shall perform a method
verification of the cannabinoid test method in their own laboratory to demonstrate that the
laboratory is capable of meeting the cannabinoid test method’s performance
specifications.
(b) For purposes of this chapter, “method verification” means the process of
demonstrating that a laboratory is capable of replicating a validated test method with an
acceptable level of performance.
(c) For purposes of this chapter, “reagent blank” means reagents that are used in the
procedure taken through the entire method and which are added in the same volumes as
used in the sample preparation. A reagent blank is analyzed in the same manner as the
representative sample.
(d) To complete the method verification of the cannabinoid test method identified in
section 15712.1(b), the laboratory shall address the criteria listed in the following table:
Criteria
Number
Required
Reagent blanks
≥1
Method blanks
≥1
Spike concentration levels
≥2
Spike replicates
≥3
(e) As part of the method verification:
(1) The licensed laboratory shall calculate the Limit of Detection (LOD) and Limit of
Quantification (LOQ) for all analytes in accordance with section 15731; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 140 of 229
(2) The licensed laboratory shall evaluate the linear dynamic range for all analytes to
ensure they meet the needs for the cannabinoid test method.
(f) The licensed laboratory shall generate a verification report for each cannabinoid test
method used. Each verification report shall include the following information:
(1) Instrument calibration data;
(2) Raw data, including instrument raw data;
(3) Cannabis reference materials or certified reference material results;
(4) Data and calculations pertaining to LOD and LOQ determinations; and
(5) Laboratory Quality Control report, as described in section 15730(j).
(g) The supervisory or management laboratory employee shall review, approve, sign,
and date the verification report for each cannabinoid test method used.
(h) The licensed laboratory shall provide the Department with the verification report
demonstrating verification of the cannabinoid test method prior to use of the cannabinoid
test method for regulatory compliance.
Authority: Sections 26013 and 26100, Business and Professions Code. Reference:
Section 26100, Business and Professions Code.
§15713. Validation of Test Methods.
(a) The licensed laboratory may use a nonstandard, amplified, or modified test method or
a method that is designed or developed by the licensed laboratory to validate the
methods for analyses of samples.
(b) The licensed laboratory shall follow the guidelines set forth in the US Food and Drug
Administration’s Guidelines for the Validation of Analytical Methods for the Detection of
Microbial Pathogens in Foods and Feeds, 2nd Edition, April 2015, incorporated herein by
reference, to validate test methods for the microbial analysis of samples. The licensed
laboratory shall include and address the criteria listed in the following table when
validating test methods for microbial analyses of samples.
Criteria
Requirement
Number of target organisms; inclusivity
5
Number of non-target organisms;
exclusivity
5
Number of analyte levels per matrix:
Qualitative methods
3 levels: high and low inoculum levels
and 1 uninoculated level
Number of analyte levels per matrix:
Quantitative methods
4 levels: low, medium and high
inoculum levels and 1 uninoculated
level
Replicates per food at each level tested
2 or more replicates per level
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 141 of 229
(c) The licensed laboratory shall follow the guidelines set forth in the US Food and Drug
Administration’s Guidelines for the Validation of Chemical Methods for the FDA FVM
Program, 2nd Edition, April 2015, incorporated herein by reference, to validate test
methods for chemical analysis of samples.
(1) The licensed laboratory shall include and address the following criteria to validate test
methods for chemical analyses of samples:
(A) Accuracy;
(B) Precision;
(C) Linearity and range;
(i) The Coefficient of Determination (r2) for all calibration curves shall be greater than or
equal to 0.99.
(ii) Linear regression or quadratic regression shall only be used for calibration curves.
Curves shall not be weighted at all or only weighted at ⅟x.
(iii) LOQ for analytes tested shall be within the range of the calibration curve.
(D) Calibration standard;
(i) For calibration curves, there shall be a minimum of five calibration standards, not
including zero; and
(ii) Each calibration curve must include an Initial Calibration Verification (ICV). The
percent recovery must be between 70% to 130%.
(E) Sensitivity and selectivity;
(F) Limit of detection and limit of quantitation;
(G) Recovery;
(H) Reproducibility; and
(I) Robustness.
(2) The licensed laboratory shall use certified reference materials to validate the following
chemical analyses. The test method used for analysis is valid if the percent recovery of
the certified reference material is between 80% to 120% for all required analytes.
(A) Cannabinoids, if available;
(B) Heavy metals;
(C) Microbial impurities;
(D) Mycotoxins;
(E) Residual pesticides;
(F) Residual solvents and processing chemicals; and
(G) Terpenoids, if available.
(d) The licensed laboratory shall generate a validation report for each test method. Each
validation report shall include the following information:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 142 of 229
(1) Instrument calibration data, if any;
(2) Raw data, including instrument raw data, for each test method, if any;
(3) Cannabis reference materials or certified reference material results;
(4) Data and calculations pertaining to LOD and LOQ determinations, if any;
(5) LQC report, as described in this chapter, for the validation of each method; and
(6) Worksheets, forms, pictures, or copies of laboratory notebook pages and any other
documentation necessary to meet the requirements described in subsections (b) and (c).
(7) The supervisory or management laboratory employee shall review, approve, sign,
and date the validation report for each test method.
(8) Upon new test methods or altered test methods being used in the laboratory, the new
validation report shall be submitted to the Department within 5 business days,
accompanied by the Licensee Notification and Request Form, Notifications and Requests
Regarding Testing Laboratories, DCC-LIC-029 (New 2/22), which is incorporated herein
by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26100, 26104 and 26110, Business and Professions Code.
Article 5. Laboratory Testing and Reporting
§15714. Required Testing.
(a) All sample increments collected must be homogenized prior to sample analyses,
notwithstanding foreign material testing.
(b) The licensed laboratory shall test each representative sample for the following:
(1) Cannabinoids;
(2) Foreign material;
(3) Heavy metals;
(4) Microbial impurities;
(5) Mycotoxins;
(6) Moisture content and water activity;
(7) Residual pesticides;
(8) Residual solvents and processing chemicals; and
(9) If applicable, terpenoids.
(c) The licensed laboratory shall report the results of each analysis performed by the
laboratory on the certificate of analysis.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 143 of 229
(d) The licensed laboratory that obtained the representative sample shall complete all
required testing for each representative sample for regulatory compliance testing.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
§15717. Moisture Content and Water Activity Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative
sample of dried flower to determine the level of water activity and the percentage of
moisture content.
(1) The dried flower sample, including pre-rolls, shall be deemed to have passed water
activity testing if the water activity does not exceed 0.65 Aw. The laboratory shall report
the result of the water activity test on the certificate of analysis (COA) and indicate “pass”
or “fail” on the COA.
(2) The licensed laboratory shall report the result of the moisture content test on the COA
as a percentage.
(b) The licensed laboratory shall analyze at least 0.5 grams of the representative sample
of solid edible cannabis products to determine the level of water activity. A solid edible
cannabis product shall be deemed to have passed water activity testing if the water
activity does not exceed 0.85 Aw. The laboratory shall report the result of the water
activity test on the COA and indicate “pass” or “fail” on the COA.
(c) If the sample fails water activity testing, the batch from which the sample was
collected fails water activity testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15718. Residual Solvents and Processing Chemicals Testing.
(a) The licensed laboratory shall analyze at minimum 0.25 grams of the representative
sample of cannabis product or pre-rolls to determine whether residual solvents or
processing chemicals are present.
(b) The licensed laboratory shall report the result of the residual solvents and processing
chemicals testing in unit micrograms per gram (μg/g) on the COA and indicate “pass” or
“fail” on the COA.
(c) The sample shall be deemed to have passed the residual solvents and processing
chemicals testing if the presence of any residual solvent or processing chemical listed in
the following tables in Category I and Category II does not exceed the indicated action
levels.
(1) Notwithstanding subsection (c), the limit for ethanol does not apply to cannabis
products that are tinctures.
(2) Notwithstanding subsection (c), the limit for ethanol or isopropyl alcohol does not
apply to cannabis products that are topical cannabis products.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 144 of 229
Category I Residual Solvent or
Processing Chemical
CAS No.
Cannabis Product or Pre-Roll
Action Level (µg/g)
1,2-Dichloroethane
107-06-2
1.0
Benzene
71-43-2
1.0
Chloroform
67-66-3
1.0
Ethylene oxide
75-21-8
1.0
Methylene chloride
75-09-2
1.0
Trichloroethylene
79-01-6
1.0
Category II Residual Solvent or
Processing Chemical
CAS No.
Cannabis Product or Pre-roll
Action Level (µg/g)
Acetone
67-64-1
5000
Acetonitrile
75-05-8
410
Butane
106-97-8
5000
Ethanol
64-17-5
5000
Ethyl acetate
141-78-6
5000
Ethyl ether
60-29-7
5000
Heptane
142-82-5
5000
Hexane
110-54-3
290
Isopropyl alcohol
67-63-0
5000
Methanol
67-56-1
3000
Pentane
109-66-0
5000
Propane
74-98-6
5000
Toluene
108-88-3
890
Total xylenes (ortho-, meta-, para-)
1330-20-7
2170
(d) If the sample fails residual solvents and processing chemicals testing, the batch from
which the sample was collected fails residual solvents and processing chemicals testing
and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 145 of 229
§15719. Residual Pesticides Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative
sample of cannabis and cannabis products to determine whether residual pesticides are
present.
(b) The licensed laboratory shall report whether any Category I Residual Pesticides are
detected above the limit of detection (LOD) and shall report the result of the Category II
Residual Pesticides testing in unit micrograms per gram (μg/g) on the COA. The
laboratory shall indicate “pass” or “fail” on the COA.
(c) The licensed laboratory shall establish a limit of quantitation (LOQ) of 0.10 μg/g or
lower for all Category I Residual Pesticides.
(d) The sample shall be deemed to have passed the residual pesticides testing if both of
the following conditions are met:
(1) The presence of any residual pesticide listed in the following tables in Category I are
not detected, and
(2) The presence of any residual pesticide listed in the following tables in Category II
does not exceed the indicated action levels.
Category I Residual Pesticide
CAS No.
Aldicarb
116-06-3
Carbofuran
1563-66-2
Chlordane
57-74-9
Chlorfenapyr
122453-73-0
Chlorpyrifos
2921-88-2
Coumaphos
56-72-4
Daminozide
1596-84-5
DDVP (Dichlorvos)
62-73-7
Dimethoate
60-51-5
Ethoprop(hos)
13194-48-4
Etofenprox
80844-07-1
Fenoxycarb
72490-01-8
Fipronil
120068-37-3
Imazalil
35554-44-0
Methiocarb
2032-65-7
Methyl parathion
298-00-0
Mevinphos
7786-34-7
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 146 of 229
Category I Residual Pesticide
CAS No.
Paclobutrazol
76738-62-0
Propoxur
114-26-1
Spiroxamine
118134-30-8
Thiacloprid
111988-49-9
Category II
Residual Pesticide
CAS No.
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable
Cannabis
Products
Abamectin
71751-41-2
0.1
0.3
Acephate
30560-19-1
0.1
5
Acequinocyl
57960-19-7
0.1
4
Acetamiprid
135410-20-7
0.1
5
Azoxystrobin
131860-33-8
0.1
40
Bifenazate
149877-41-8
0.1
5
Bifenthrin
82657-04-3
3
0.5
Boscalid
188425-85-6
0.1
10
Captan
133-06-2
0.7
5
Carbaryl
63-25-2
0.5
0.5
Chlorantraniliprole
500008-45-7
10
40
Clofentezine
74115-24-5
0.1
0.5
Cyfluthrin
68359-37-5
2
1
Cypermethrin
52315-07-8
1
1
Diazinon
333-41-5
0.1
0.2
Dimethomorph
110488-70-5
2
20
Etoxazole
153233-91-1
0.1
1.5
Fenhexamid
126833-17-8
0.1
10
Fenpyroximate
111812-58-9
0.1
2
Flonicamid
158062-67-0
0.1
2
Fludioxonil
131341-86-1
0.1
30
Hexythiazox
78587-05-0
0.1
2
Imidacloprid
138261-41-3
5
3
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 147 of 229
Category II
Residual Pesticide
CAS No.
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable
Cannabis
Products
Kresoxim-methyl
143390-89-0
0.1
1
Malathion
121-75-5
0.5
5
Metalaxyl
57837-19-1
2
15
Methomyl
16752-77-5
1
0.1
Myclobutanil
88671-89-0
0.1
9
Naled
300-76-5
0.1
0.5
Oxamyl
23135-22-0
0.5
0.2
Pentachloronitrobenzene
82-68-8
0.1
0.2
Permethrin
52645-53-1
0.5
20
Phosmet
732-11-6
0.1
0.2
Piperonylbutoxide
51-03-6
3
8
Prallethrin
23031-36-9
0.1
0.4
Propiconazole
60207-90-1
0.1
20
Pyrethrins
8003-34-7
0.5
1
Pyridaben
96489-71-3
0.1
3
Spinetoram
187166-15-0,
187166-40-1
0.1 3
Spinosad
131929-60-7,
131929-63-0
0.1 3
Spiromesifen
283594-90-1
0.1
12
Spirotetramat
203313-25-1
0.1
13
Tebuconazole
107534-96-3
0.1
2
Thiamethoxam
153719-23-4
5
4.5
Trifloxystrobin
141517-21-7
0.1
30
(e) If the sample fails residual pesticides testing, the batch from which the sample was
collected fails residual pesticides testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 148 of 229
§15720. Microbial Impurities Testing.
(a) The licensed laboratory shall analyze at minimum 1.0 grams of the representative
sample of cannabis or cannabis products to determine whether microbial impurities are
present.
(b) The licensed laboratory shall report the result of the microbial impurities testing by
indicating “pass” or “fail” on the COA.
(c) The sample of inhalable cannabis and cannabis products shall be deemed to have
passed the microbial impurities testing if all of the following conditions are met:
(1) Shiga toxin-producing Escherichia coli is not detected in 1 gram;
(2) Salmonella spp. is not detected in 1 gram; and
(3) Pathogenic Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus are
not detected in 1 gram.
(d) The sample of non-inhalable cannabis and cannabis products shall be deemed to
have passed the microbial impurities testing if both the following conditions are met:
(1) Shiga toxin-producing Escherichia coli is not detected in 1 gram, and
(2) Salmonella spp. is not detected in 1 gram.
(e) If the sample fails microbial impurities testing, the batch from which the sample was
collected fails microbial impurities testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15721. Mycotoxin Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative
sample of cannabis and cannabis products to determine whether mycotoxins are
present.
(b) The licensed laboratory shall report the result of the mycotoxins testing in unit
micrograms per kilograms (μg/kg) on the COA and indicate “pass” or “fail” on the COA.
(c) The sample shall be deemed to have passed mycotoxin testing if both the following
conditions are met:
(1) Total of aflatoxin B1, B2, G1, and G2 does not exceed 20 μg/kg of substance, and
(2) Ochratoxin A does not exceed 20 μg/kg of substance.
(d) If the sample fails mycotoxin testing, the batch from which the sample was collected
fails mycotoxin testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 149 of 229
§15722. Foreign Material Testing.
(a) The licensed laboratory shall analyze the representative sample of cannabis and
cannabis products to determine whether foreign material is present.
(b) The licensed laboratory shall report the result of the foreign material test by indicating
“pass” or “fail” on the COA.
(c) The licensed laboratory shall perform foreign material testing on the total
representative sample prior to sample homogenization.
(d) When the licensed laboratory performs foreign material testing, at minimum, the
laboratory shall do all of the following:
(1) Examine both the exterior and interior of the dried flower sample, and
(2) Examine the exterior of the cannabis product sample.
(e) The sample shall be deemed to have passed the foreign material testing if the
presence of foreign material does not exceed:
(1) 1/4 of the total sample area covered by sand, soil, cinders, or dirt;
(2) 1/4 of the total sample area covered by mold;
(3) 1 insect fragment, 1 hair, or 1 count mammalian excreta per 3.0 grams; or
(4) 1/4 of the total sample area covered by an imbedded foreign material.
(f) If the sample fails foreign material testing, the batch from which the sample was
collected fails foreign material testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15723. Heavy Metals Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative
sample of cannabis and cannabis products to determine whether heavy metals are
present.
(b) The licensed laboratory shall report the result of the heavy metals test in unit
micrograms per gram (μg/g) on the COA and indicate “pass” or “fail” on the COA.
(c) The sample shall be deemed to have passed the heavy metals testing if the presence
of heavy metals does not exceed the action levels listed in the following table.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 150 of 229
Heavy Metal
Action Level (µg/g) for
Inhalable Cannabis and
Cannabis Products
Action Level (µg/g) for
Non-Inhalable Cannabis
and Cannabis Products
Cadmium
0.2
0.5
Lead
0.5
0.5
Arsenic
0.2
1.5
Mercury
0.1
3.0
(d) If the sample fails heavy metals testing, the batch from which the sample was
collected fails heavy metals testing and shall not be released for retail sale.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15724. Cannabinoid Testing.
(a) The licensed laboratory shall analyze at minimum 0.5 grams of the representative
sample of cannabis and cannabis products to determine the cannabinoid profile such as
THC; THCA; CBD; CBDA; CBG; and CBN.
(b) The licensed laboratory shall establish a limit of quantitation (LOQ) of 1.0 mg/g or
lower for all cannabinoids analyzed and reported.
(c) The licensed laboratory shall report the result of the cannabinoid testing on the COA,
including, at minimum:
(1) A percentage for THC, THCA, CBD, and CBDA;
(A) When the licensed laboratory reports the result of the cannabinoid testing for harvest
batch representative samples on the COA in dry-weight percent, they shall use the
following equation:
Dry-weight percent cannabinoid = wet-weight percent cannabinoid / (1 − percent
moisture / 100)
(2) A percentage for Total THC and Total CBD, if applicable;
(3) Milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter (mg/mL) if by
volume for THC, THCA, CBD, and CBDA.
(4) Milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter (mg/mL) if by
volume for Total THC and Total CBD, if applicable;
(A) The licensed laboratory shall calculate the total cannabinoid concentration as follows:
(i) For concentration expressed in weight:
Total cannabinoid concentration (mg/g) = (cannabinoid acid form concentration (mg/g) x
0.877) + cannabinoid concentration (mg/g)
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 151 of 229
(ii) For concentration expressed in volume:
Total cannabinoid concentration (mg/mL) = (cannabinoid acid form concentration
(mg/mL) x 0.877) + cannabinoid concentration (mg/mL)
(5) Milligrams per package for THC and CBD;
(6) Milligrams per package for Total THC and Total CBD, if applicable;
(7) Milligrams per serving for THC and CBD, if any;
(8) Milligrams per serving for Total THC and Total CBD, if any and if applicable; and
(9) The licensed laboratory shall report the results of all other cannabinoids analyzed on
the COA both as a percentage and in either milligrams per gram (mg/g) if by weight or
milligrams per milliliter (mg/mL) if by volume.
(d) The sample shall be deemed to have passed the cannabinoid testing if the amount of
THC does not exceed the limits established in section 17304.
(e) The licensed laboratory shall report the test results and indicate an overall “pass” or
“fail” for the cannabinoid testing on the COA.
(f) Any cannabinoids found to be less than the LOQ shall be reported on the COA as “<1
mg/g” if by dry-weight or “<1 mg/mL” if by volume.
(g) If the sample fails cannabinoid testing, the batch from which the sample was collected
fails cannabinoid testing and shall not be released for retail sale.
(h) For purposes of this division, any one cannabinoid, Total THC, and/or Total CBD
claimed to be present on a label shall not be considered inaccurate if the difference in
percentage on the certificate of analysis is plus or minus 10.0%.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
§15725. Terpenoid Testing.
(a) If requested, the licensed laboratory shall analyze at minimum 0.5 grams of the
representative sample of cannabis or cannabis products to determine the terpenoid
profile of the sample.
(b) The licensed laboratory shall report the result of the terpenoid testing on the COA
both as a percentage and in either milligrams per gram (mg/g) if by weight or milligrams
per milliliter (mg/mL) if by volume.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 152 of 229
§15726. Certificate of Analysis (COA).
(a) The licensed laboratory shall generate a COA for each representative sample that the
laboratory analyzes.
(b) The licensed laboratory shall ensure that the COA contains the results of all required
analyses performed for the representative sample.
(c) The licensed laboratory shall, within 1 business day of completing all analyses of a
sample, both upload the COA into the track and trace system and simultaneously provide
a copy of the COA to the Department via email at testinglabs@cannabis.ca.gov with a
file name of “METRC UID Number and Test Sample ID” and “Passed” or “Failed” in the
subject heading of the email.
(d) The licensed laboratory shall not release to any person any cumulative or individual
test results prior to completing all analyses and providing the COA to the Department.
(e) The COA shall contain, at minimum, the following information:
(1) The term “Regulatory Compliance Testing” in font no smaller than 14-point, which
shall appear in the upper-right corner of each page of the COA. No text or images shall
appear above the term “Regulatory Compliance Testing” on any page of the COA.
(2) Laboratory’s name, licensed premises address, and license number;
(3) Licensed distributor’s or licensed microbusiness authorized to engage in distribution’s
name, licensed premises address, and license number;
(4) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name,
licensed premises address, and license number;
(5) Batch number of the batch from which the sample was obtained. For cannabis and
cannabis products that are already packaged at the time of sampling, the labeled batch
number on the packaged cannabis and cannabis products shall match the batch number
on the COA;
(6) Sample identifying information, including matrix type and unique sample identifiers;
(7) Sample history, including the date collected, the date received by the laboratory, and
the date(s) of sample analyses and corresponding testing results;
(8) A picture of the sample of cannabis and cannabis products. If the sample is pre-
packaged, the picture must include an unobstructed image of the packaging;
(9) For dried flower samples, the total weight of the batch, in grams or pounds, and the
total weight, of the representative sample in grams;
(10) For cannabis product or pre-rolls samples, the total unit count of both the
representative sample and the total batch size;
(11) Measured density of the cannabis and cannabis products;
(12) The analytical methods, analytical instrumentation used, and corresponding Limits of
Detection (LOD) and Limits of Quantitation (LOQ);
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 153 of 229
(13) An attestation on the COA from the laboratory supervisory or management
employee that all LQC samples required by section 15730 were performed and met the
acceptance criteria; and
(14) Analytes detected during the analyses of the sample that are unknown, unidentified,
or injurious to human health if consumed, if any.
(f) The licensed laboratory shall report test results for each representative sample on the
COA as follows:
(1) Indicate an overall “pass” or “fail” for the entire batch;
(2) When reporting qualitative results for each analyte, the licensed laboratory shall
indicate “pass” or “fail”;
(3) When reporting quantitative results for each analyte, the licensed laboratory shall use
the appropriate units of measurement as required under this chapter;
(4) When reporting results for each test method, the licensed laboratory shall indicate
“pass” or “fail”;
(5) When reporting results for any analytes that were detected below the analytical
method LOQ, indicate “<LOQ”, notwithstanding cannabinoid results;
(6) When reporting results for any analytes that were not detected or detected below the
LOD, indicate “ND”; and
(7) Indicate “NT” for any test that the licensed laboratory did not perform.
(g) The licensed laboratory supervisory or management employee shall validate the
accuracy of the information contained on the COA and sign and date the COA.
(h) The laboratory supervisory or management employee may request to amend a COA
to correct minor errors. Requests must be emailed to the Department at
testinglabs@cannabis.ca.gov for approval prior to making any corrections. Errors in
results required to be reported pursuant to subsection (f) are not minor errors.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
Article 6. Post Testing Procedures
§15727. Remediation and Retesting.
(a) A cannabis or cannabis product batch that has been additionally processed after
failed regulatory compliance testing pursuant to section 17305 must be retested and
successfully pass all the analyses required under this chapter.
(b) A cannabis or cannabis product batch may only be remediated twice. If the batch fails
after the second remediation attempt and the second retesting, the entire batch shall be
destroyed.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 154 of 229
(c) Within one business day of completing the required analyses of a representative
sample obtained from a remediated cannabis or cannabis product batch, the laboratory
shall upload the COA information into the track and trace system, or if the licensee does
not yet have access to the track and trace system, it shall be emailed to the Department.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104 and 26110, Business and Professions Code.
§15728. Post Testing Sample Retention.
(a) The licensed laboratory shall retain the reserve sample, consisting of any portion of a
sample that was not used in the testing process. The reserve sample shall be kept, at
minimum, for 45 business days after the analyses, after which time it may be destroyed
and denatured to the point the material is rendered unrecognizable and unusable.
(b) The licensed laboratory shall securely store the reserve sample in a manner that
prohibits sample degradation, contamination, and tampering.
(c) The licensed laboratory shall provide the reserve sample to the Department upon
request.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
Article 7. Laboratory Quality Assurance and Quality Control
§15729. Laboratory Quality Assurance (LQA) Program.
(a) The licensed laboratory shall develop and implement a LQA program to assure the
reliability and validity of the analytical data produced by the laboratory. The LQA program
shall, at minimum, include a written LQA manual that addresses the following:
(1) Quality control procedures;
(2) Laboratory organization and employee training and responsibilities, including good
laboratory practice (GLP);
(3) LQA objectives for measurement data;
(4) Traceability of data and analytical results;
(5) Instrument maintenance, calibration procedures, and frequency;
(6) Performance and system audits;
(7) Corrective action procedures;
(8) Steps to change processes when necessary;
(9) Record retention and document control;
(10) Test procedure standardization; and
(11) Method validation.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 155 of 229
(b) The supervisory or management laboratory employee shall annually review, amend if
necessary, and approve the LQA program and manual both when they are created and
when there is a change in methods, laboratory equipment, or the supervisory or
management laboratory employee.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15730. Laboratory Quality Control (LQC) Samples.
The licensed laboratory shall use LQC samples and adhere to good laboratory practice
(GLP) in the performance of each analysis according to the following specifications.
(a) The licensed laboratory shall analyze LQC samples in the same manner as the
laboratory analyzes cannabis and cannabis products samples.
(b) The licensed laboratory shall use at least one negative control, one positive control,
and one laboratory replicate sample in each analytical batch for each target organism
during microbial testing. If one of the controls produces unexpected results, the samples
shall be re-prepped and reanalyzed with a new set of controls.
(c) If the result of the microbial analyses is outside the specified acceptance criteria in the
following table, the licensed laboratory shall determine the cause and take steps to
remedy the problem until the result is within the specified acceptance criteria.
Laboratory Quality
Control Sample
Acceptance Criteria
Corrective Action
Positive control
Produces expected
result, positive result
Re-prep and reanalyze the entire analytical batch,
once. If problem persists, locate and remedy the
source of unexpected result, then re-
prep samples
and reanalyze with a new set of controls.
Negative control
Produces expected
result, negative
result
Re-prep and reanalyze the entire analytical batch,
once. If problem persists, locate and remedy the
source of unexpected result, then re-
prep samples
and reanalyze with a new set of controls.
Laboratory replicate
sample
Sample results must
concur
Reanalyze sample and associated replicate
sample once. If problem persists, re-
prep samples
and reanalyze.
(d) The licensed laboratory shall prepare and analyze at least one of each of the
following LQC samples for each analytical batch:
(1) Method blank;
(2) Laboratory control sample (LCS); and
(3) Laboratory replicate sample or matrix spike sample.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 156 of 229
(e) The laboratory shall analyze, at minimum, a continuing calibration verification (CCV)
sample at the beginning of each analytical sequence and every 10 samples thereafter.
(f) If the result of the chemical analyses is outside the specified acceptance criteria in the
following table, the laboratory shall determine the cause and take steps to remedy the
problem until the result is within the specified acceptance criteria.
Laboratory Quality
Control Sample
Acceptance Criteria
Corrective Action
Method Blank sample
Not to exceed LOQ
Reanalyze entire analytical batch once. If
method blank is still greater than the LOQ for
any analyte, locate the source of contamination
then re-prep samples and reanalyze.
LCS
Percent recovery 70%
to 130%
Reanalyze the entire analytical batch, once. If
problem persists, re-prep samples and
reanalyze or re-run the initial calibration curve.
Laboratory replicate
sample
RPD ≤30%
Reanalyze sample and associated replicate
sample once. If problem persists, re-prep
samples and reanalyze.
Matrix spike sample
Percent recovery
between 70% to 130%
Reanalyze sample and associated matrix spike
sample once. If problem persists, re-prep
samples and reanalyze.
CCV
Percent recovery
between 70% to 130%
Reanalyze all samples that followed the last
CCV that met the acceptance criteria. If CCV
still fails, re-run the initial calibration curve and
all samples in the analytical sequence.
(g) If any analyte is detected above any action level, as described in this chapter, the
sample shall be re-prepped and reanalyzed in replicate within another analytical batch.
(1) For quantitative analyses, the re-prepped sample and its associated replicate must
meet the acceptance criteria of RPD ≤30%.
(2) For qualitative analyses, the re-prepped sample and its associated replicate results
must concur.
(h) If any LQC sample produces a result outside of the acceptance criteria, the laboratory
cannot report the result and the entire batch cannot be released for retail sale. The
laboratory shall determine the cause and take steps to remedy the problem until the
result is within the specified acceptance criteria.
(i) If the licensed laboratory determines that the result is a false-positive or a false-
negative, the Department may ask for the laboratory to re-sample or retest.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 157 of 229
(j) The licensed laboratory shall compile and generate one LQC sample report for each
analytical batch that includes LQC acceptance criteria, measurements, analysis date,
and matrix.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative
Analyses.
(a) The licensed laboratory shall calculate the LOD for chemical method analyses
according to any of the following methods:
(1) Signal-to-noise ratio of between 3:1 and 2:1;
(2) Standard deviation of the response and the slope of calibration curve using a
minimum of 7 spiked blank samples calculated as follows; LOD = (3.3 x standard
deviation of the response) / slope of the calibration curve; or
(3) A method published by the United States Food and Drug Administration (USFDA) or
the United States Environmental Protection Agency (USEPA).
(b) The licensed laboratory shall calculate the LOQ for chemical method analyses
according to any of the following methods:
(1) Signal-to-noise ratio of 10:1, at minimum;
(2) Standard deviation of the response and the slope using a minimum of 7 spiked blank
samples calculated as follows:
LOQ = (10 x standard deviation of the response) / slope of the calibration curve; or
(3) A method published by the USFDA or the USEPA.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100, 26104 and 26110, Business and Professions Code.
§15732. Data Package.
(a) The licensed laboratory shall compile and generate one data package for each
representative sample that the laboratory analyzes.
(b) The licensed laboratory shall create a data package and use the Data Package Cover
Page and Checklist Form, DCC-LIC-024 (Amended 2/22), which is incorporated herein
by reference. The data package and form DCC-LIC-024 (Amended 2/22) shall be
provided to the Department immediately upon request.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100,
26104, 26110 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 158 of 229
§15733. Required Proficiency Testing.
(a) The licensed laboratory shall participate in a proficiency testing program provided by
an organization that operates in conformance with the requirements of ISO/IEC 17043, at
least once every six months.
(b) The licensed laboratory shall annually, successfully participate in a proficiency testing
program for each of the following test methods:
(1) Cannabinoids;
(2) Heavy metals;
(3) Microbial impurities;
(4) Mycotoxins;
(5) Residual pesticides;
(6) Residual solvents and processing chemicals; and
(7) If tested, terpenoids.
(c) The licensed laboratory shall report all analytes available by the proficiency testing
program provider and for which the licensee is required to test as required under this
chapter.
(d) The licensed laboratory shall participate in the proficiency testing program by
following the laboratory’s existing SOPs for testing cannabis and cannabis products.
(e) The licensed laboratory shall rotate the proficiency testing program among the
laboratory employees who perform the test methods.
(f) Laboratory employees who participate in a proficiency testing program shall sign the
corresponding analytical reports or attestation statements to certify that the proficiency
testing program was conducted in the same manner as the laboratory tests of cannabis
and cannabis products.
(g) A supervisory or management laboratory employee shall review and verify the
accuracy of results reported for all proficiency testing program samples analyzed.
(h) The licensed laboratory shall request the proficiency testing program provider to send
results concurrently to the Department, if available, or the laboratory shall provide the
proficiency testing program results to the Department within 3 business days after the
laboratory receives notification of their test results from the proficiency testing program
provider. Any results shall be reported by submitting the Licensee Notification and
Request Form, Notifications and Requests Regarding Testing Laboratories, DCC-LIC-
029 (New 2/22), which is incorporated herein by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100
and 26110, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 159 of 229
§15734. Satisfactory and Unsatisfactory Proficiency Test Performance.
(a) The licensed laboratory shall be deemed to have successfully participated in a
proficiency testing program for an analyte tested in a specific method if the test results
demonstrate a “satisfactory” or otherwise proficient performance determination by the
proficiency testing program provider.
(b) The licensed laboratory may not report test results for analytes that are deemed by
the proficiency testing program provider as “unacceptable,” “questionable,”
“unsatisfactory”, or otherwise deficient.
(c) The licensed laboratory may resume reporting test results for analytes that were
deemed “unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient, only if
both of the following conditions are met:
(1) The licensed laboratory satisfactorily remedies the cause of the failure for each
analyte; and
(2) The licensed laboratory submits, to the Department, a written corrective action report
demonstrating how the laboratory has fixed the cause of the failure.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26100 and 26110, Business and Professions Code.
§15735. Laboratory Audits.
(a) The licensed laboratory shall conduct an internal audit at least once per year or in
accordance with the ISO/IEC 17025 accrediting body’s requirement, whichever is more
frequent.
(b) The internal audit must include all of the components required by the ISO/IEC 17025
internal-audit standards.
(c) Within 3 business days of completing the internal audit, the licensed laboratory shall
submit the results of the internal audit to the Department.
(d) Within 3 business days of receiving the accrediting body onsite audit findings, the
licensed laboratory shall submit the results to the Department.
(e) The licensed laboratory shall submit any audit results to the Department,
accompanied by the Licensee Notification and Request Form, Notifications and Requests
Regarding Testing Laboratories, DCC-LIC-029 (New 2/22), which is incorporated herein
by reference.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26100
and 26104, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 160 of 229
Article 8. Laboratory Employee Qualifications
§15736. General Laboratory Employee Qualifications.
(a) The licensed laboratory may only employ persons who are at least 21 years of age.
(b) The licensed laboratory shall develop and implement an employee training program
to ensure competency of laboratory employees for their assigned functions.
(c) The licensed laboratory shall ensure and document that each laboratory employee
meets the employee qualifications.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26102 and 26104, Business and Professions Code.
§15737. Supervisor or Management Responsibilities and Qualifications.
(a) The licensed laboratory shall employ a supervisor or management employee who
must be responsible for:
(1) Overseeing and directing the scientific methods of the licensed laboratory;
(2) Ensuring that the licensed laboratory achieves and maintains a laboratory quality
assurance program as required by section 15729; and
(3) Providing ongoing and appropriate training to laboratory employees.
(b) To be considered qualified, the supervisor or management employee must have at
minimum:
(1) A doctoral degree in biological, chemical, agricultural, environmental, or related
sciences from an accredited college or university;
(2) A master’s degree in biological, chemical, agricultural, environmental, or related
sciences from an accredited college or university, plus at least 2 years of full-time
practical experience;
(3) A bachelor’s degree in biological, chemical, agricultural, environmental, or related
sciences from an accredited college or university, plus at least 4 years of full-time
practical experience; or
(4) A bachelor’s degree in any field from an accredited college or university, plus at least
8 years of full-time practical experience, 4 years of which must have been in a
supervisory or management position.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26102
and 26104, Business and Professions Code.
§15738. Analyst and Sampler Qualifications.
(a) The licensed laboratory shall employ an analyst who, at minimum, must have either:
(1) Earned a master’s degree or a bachelor’s degree in biological, chemical, agricultural,
environmental, or related sciences from an accredited college or university; or
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 161 of 229
(2) Completed 2 years of college or university education that included coursework in
biological, chemical, agricultural, environmental, or related sciences from an accredited
college or university, plus at least 3 years of full-time practical experience.
(b) The licensed laboratory shall employ a sampler who, at minimum, must have either:
(1) Completed 2 years college or university education; or
(2) Earned a High School Diploma or passed a General Educational Development or
High School Equivalency exam, plus at least 1 year of full-time practical experience.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26102
and 26104, Business and Professions Code.
Chapter 7. Cultivators
Article 1. General Cultivation Requirements
§16201. Cultivation License Types.
License types include:
(a) Specialty Cottage:
(1) “Specialty Cottage Outdoor” is an outdoor cultivation site with up to 25 mature plants
or 2,500 square feet or less of total canopy.
(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.
(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 with between 501 and 5,000 square feet
of total canopy.
(3) “Specialty Mixed-Light Tier 1 and 2” is a mixed-light cultivation site with between
2,501 and 5,000 square feet of total canopy.
(c) Small:
(1) “Small Outdoor” is an outdoor cultivation site with between 5,001 and 10,000 square
feet of total canopy.
(2) “Small Indoor” is an indoor cultivation site with 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 with between 5,001
and 10,000 square feet of total canopy.
(d) Medium:
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 162 of 229
(1) “Medium Outdoor” is an outdoor cultivation site with between 10,001 square feet and
one acre of total canopy.
(2) “Medium Indoor” is an indoor cultivation site with 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 with between
10,001 and 22,000 square feet of total canopy.
(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.
(f) “Processor” is a cultivation site that conducts only trimming, drying, curing, grading,
packaging, and labeling of cannabis and nonmanufactured cannabis products.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26013, 26050 and 26061, Business and Professions Code.
§ 16201.1. Large Cultivation Licenses.
(a) Beginning January 1, 2023, the Department may issue Large Cultivation licenses.
Large license types include:
(1) “Large Outdoor” is an outdoor cultivation site with more than one acre of total canopy.
(2) “Large Indoor” is an indoor cultivation site with more than 22,000 square feet of total
canopy.
(3) “Large Mixed-light” is a Mixed-light cultivation site with more than 22,000 square feet
of total canopy.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26013, 26050 and 26061, Business and Professions Code.
§16202. General Cultivation Requirements.
(a) 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 Department.
(b) Artificial lighting is permissible only to maintain immature plants outside the canopy
area.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26010,
26012, 26013, 26050 and 26053, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 163 of 229
§16209. Medium Cultivation License Limits.
A person or owner 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 cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26013, 26050 and 26061, Business and Professions Code.
Article 2. Cultivation Site Requirements
§16300. Cultivation Requirements.
(a) Cannabis plants maintained outside of the designated canopy area(s) for specialty
cottage, specialty, small, and medium licenses are prohibited from flowering. Should a
plant outside of the canopy area(s) begin flowering, a plant tag shall be applied, the plant
shall be moved to a designated canopy area and reported in the track and trace system
without delay.
(b) All plants or portions of a plant used for seed production shall be tagged with a plant
tag pursuant to section 15048.4.
(c) A licensee propagating immature plants for distribution or seed for distribution to
another licensee shall obtain a nursery license.
(d) Licensees shall process their harvested cannabis only in area(s) designated for
processing in their cultivation plan, or transfer their harvested cannabis to a licensed
processor, manufacturer, or distributor via a licensed distributor.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26060 and 26120, Business and Professions Code.
§ 16300.1. Additional Cultivation Requirements for Large Licenses.
(a) Commencing on January 1, 2023, a person that holds an ownership or financial
interest in a Large Cultivation license shall not be eligible to apply for or hold an
ownership or financial interest in a Type 8, Type 11, or Type 12 license.
(b) As part of the license application for a Large Cultivation license or a request for a
conversion into a Large Cultivation license the applicant or licensee shall submit an
attestation that:
(1) All persons who will hold an ownership or financial interest in the Large Cultivation
license do not currently hold any ownership or financial interest in a Type 8, Type 11, or
Type 12 license; and
(2) No person who will hold an ownership or financial interest in the Large Cultivation
license will apply for or hold an ownership or financial interest in a Type 8, Type 11, or
Type 12 license while maintaining their ownership or financial interest in the Large
Cultivation license.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012,
26060, 26061 and 26180, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 164 of 229
§16301. Seed Production Requirements for Nursery Licensees.
Nursery licensees producing seed for distribution shall tag all mature plants with a plant
tag pursuant to section 15048.4(b). All products, except seed, derived from these plants
are prohibited from entering the commercial distribution chain.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26060 and 26067, Business and Professions Code.
§16302. Research and Development Requirements for Nursery Licensees.
Nursery licensees may maintain a research and development area, as identified in their
cultivation plan, for the cultivation of mature plants. All mature plants shall be tagged with
a plant tag pursuant to section 15048.4. All cannabis and cannabis products derived from
these plants are prohibited from entering the commercial distribution chain or being
transferred off the licensed premises.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26060 and 26067, Business and Professions Code.
§16303. Cultivation Requirements for Processor Licensees.
(a) Processor licensees shall comply with all of the following requirements:
(1) All aggregation of product shall adhere to track and trace requirements.
(2) Licensees may produce nonmanufactured cannabis products without a manufacturing
license.
(3) Cultivation of cannabis plants is prohibited at a licensed processor premises.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26060, 26067, 26069 and 26120, Business and Professions Code.
§16304. General Environmental Protection Measures.
(a) All licensed cultivators shall comply with all of the following environmental protection
measures:
(1) Principles, guidelines, and requirements adopted pursuant to section 13149 of the
Water Code and implemented by the State Water Resources Control Board, Regional
Water Quality Control Boards, or California Department of Fish and Wildlife;
(2) Any conditions of licensure included pursuant to section 26060.1(b)(1) of the
Business and Professions Code;
(3) Requirements of section 7050.5(b) of the Health and Safety Code if human remains
are discovered during cultivation activities;
(4) Requirements for generators pursuant to section 16306;
(5) Requirements for pesticides pursuant to section 16307;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 165 of 229
(6) Outdoor lights used for safety or security purposes are shielded and downward
facing; and
(7) Lights used for indoor or mixed-light cultivation are shielded from sunset to sunrise to
reduce nighttime glare.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26060, 26066 and 26201, Business and Professions Code.
§16305. Renewable Energy Requirements.
(a) Beginning January 1, 2023, all holders of indoor, tier 2 mixed-light license types of
any size, and all holders of nursery licenses using indoor or tier 2 mixed-light techniques
shall ensure that electrical power used for commercial cannabis activity meets the
average electricity greenhouse gas emissions intensity required by their local utility
provider pursuant to the California Renewables Portfolio Standard Program in division 1,
part 1, chapter 2.3, article 16 (commencing with section 399.11) of the Public Utilities
Code.
(b) If a licensed cultivator's average weighted greenhouse gas emission intensity, as
calculated and reported upon license renewal pursuant to section 15020, is greater than
the local utility provider's greenhouse gas emission intensity, the licensee shall obtain
carbon offsets to cover the excess in carbon emissions from the previous annual
licensed period. The carbon offsets shall be purchased from one or more of the following
recognized voluntary carbon registries:
(1) American Carbon Registry;
(2) Climate Action Reserve; or
(3) Verified Carbon Standard.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26060, 26066 and 26201, Business and Professions Code.
§16306. Generator Requirements.
(a) For the purposes of this section, “generator” means a stationary or portable
compression ignition engine, also known as a diesel engine, as defined in title 17,
California Code of Regulations, section 93115.4.
(b) Licensed cultivators using generators rated at fifty (50) horsepower and greater shall
demonstrate compliance with the Airborne Toxic Control Measure for stationary or
portable engines, as applicable, established in title 17, California Code of Regulations,
sections 93115-93116.5. Compliance shall be demonstrated by providing a copy of one
of the following to the Department upon request:
(1) For portable engines, a Portable Equipment Registration Certificate provided by the
California Air Resources Board; or
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 166 of 229
(2) For portable or stationary engines, a Permit to Operate or other proof of engine
registration, obtained from the Local Air District with jurisdiction over the licensed
premises.
(c) Licensed cultivators using generators rated below fifty (50) horsepower shall comply
with the following by 2023:
(1) Either subsection (1)(A) or (1)(B):
(A) Meet the “emergency” definition for portable engines in title 17, California Code of
Regulations, section 93116.2(a)(12), or the “emergency use” definition for stationary
engines in title 17, California Code of Regulations, section 93115.4(a)(30); or
(B) Operate eighty (80) hours or less in a calendar year; and
(2) Either subsection (2)(A) or (2)(B):
(A) Meet Tier 3 with Level 3 diesel particulate filter requirements in title 13, California
Code of Regulations, sections 2700-2711; or
(B) Meet Tier 4 requirements, or current engine requirements if more stringent, in title 40,
Code of Federal Regulations, chapter I, subchapter U, part 1039, subpart B, section
1039.101.
(d) All generators used by licensed cultivators shall be equipped with non-resettable
hour-meters. If a generator does not come equipped with a non-resettable hour-meter,
an aftermarket non-resettable hour-meter shall be installed.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26060, 26066 and 26201, Business and Professions Code.
§16307. Pesticide Use Requirements.
(a) Licensed cultivators shall comply with all applicable pesticide statutes and regulations
enforced by the Department of Pesticide Regulation.
(b) For all pesticides that are exempt from registration requirements, licensed cultivators
shall comply with all applicable pesticide statutes and regulations enforced by the
Department of Pesticide Regulation and the following pesticide application and storage
protocols:
(1) Comply with all pesticide label directions;
(2) Store chemicals in a secure building or shed to prevent access by wildlife;
(3) Contain any chemical leaks and immediately clean up any spills;
(4) Apply the minimum amount of product necessary to control the target pest;
(5) Prevent offsite drift;
(6) Do not apply pesticides when pollinators are present;
(7) Do not allow drift to flowering plants attractive to pollinators;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 167 of 229
(8) Do not spray directly to surface water or allow pesticide product to drift to surface
water. Spray only when wind is blowing away from surface water bodies;
(9) Do not apply pesticides when they may reach surface water or groundwater; and
(10) Only use properly labeled pesticides. If no label is available, consult the Department
of Pesticide Regulation.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26060, 26066 and 26201, Business and Professions Code.
§16308. Canopy Requirements.
(a) Licensed cultivators shall comply with the following requirements for canopy areas:
(1) Each canopy shall be marked with clearly identifiable physical boundaries around all
areas that will contain mature plants. Physical boundaries include, but are not limited to,
interior walls, shelves, greenhouse walls, hoop house walls, garden benches,
hedgerows, fencing, garden beds, garden plots, or stakes delineating the perimeter.
(2) Each canopy shall be of sufficient size to contain the mature plants in their entirety at
any point in time. No portion of the plant is permitted to hang over an established canopy
boundary.
(b) Seeds, immature plants, or propagated material received from a licensed nursery as
trade samples shall be cultivated in a canopy area dedicated to trade samples that meets
the requirements of subsection (a). Canopy areas used to cultivate trade samples
received from a licensed nursery shall be included in the licensed cultivator’s cultivation
plan and shall be included in the aggregate square footage of the canopy areas.
(c) Licensed cultivators may utilize canopy areas to produce seeds for their own use.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013
and 26060, Business and Professions Code.
§16309. Cultivation Plan Requirements.
(a) Licensed cultivators shall establish and maintain a cultivation plan that includes all of
the following:
(1) A premises diagram drafted in accordance with section 15006.
(2) A cannabis waste management plan developed in accordance with section 17223.
(3) A pest management plan developed in accordance with section 16310.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26051.5 and 26060, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 168 of 229
§16310. Pest Management Plan.
(a) The licensed cultivator shall develop a pest management plan that includes:
(1) The product name and active ingredient(s) of all pesticides to be applied to cannabis;
and
(2) Any integrated pest management protocols, including chemical, biological, and
cultural methods, that will be used to prevent and control pests on the cultivation site.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26013, 26051.5 and 26060, Business and Professions Code.
§16311. Supplemental Water Source Information.
The following information shall be provided for each water source identified by the
applicant:
(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 or written documentation from the water
supplier stating that service will be provided at the premises address.
(2) If the water source is a small retail water supplier, such as a delivery service, and is
subject to section 26060.1(a)(1)(B) of the Business and Professions Code and 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:
(A) The name of the retail water supplier under the contract;
(B) 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 commercial cannabis business under the
contract;
(C) The authorized place of use of any water right used by the retail water supplier to
divert water delivered to the commercial cannabis business under the contract;
(D) The maximum amount of water delivered to the commercial cannabis business for
cannabis cultivation in any year; and
(E) A copy of the most recent water service bill.
(3) If the water source is a small retail water supplier, such as a delivery service, and is
subject to section 26060.1(a)(1)(B) of the Business and Professions Code and the retail
water supplier contract is for delivery or pickup of water from a groundwater well, provide
all of the following:
(A) The name of the retail water supplier under the contract;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 169 of 229
(B) The geographic location coordinates for any groundwater well used to supply water
delivered to the commercial cannabis business, in either latitude and longitude or the
California Coordinate System;
(C) The maximum amount of water delivered to the commercial cannabis business for
cannabis cultivation in any year;
(D) 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 commercial cannabis business. 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. When no well completion report is available, the State Water
Resources Control Board may request additional information about the well; and
(E) A copy of the most recent water service bill.
(b) If the water source is a groundwater well, provide the following:
(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.
(c) If the water source is a rainwater catchment system, provide the following:
(1) The total square footage of the catchment footprint area(s).
(2) The total storage capacity, in gallons, of the catchment system(s).
(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.
(4) Geographic location coordinates of the rainwater catchment infrastructure in either
latitude and longitude or the California Coordinate System.
(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 a copy of any
applicable statement, registration certificate, permit, license, 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.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013
and 26060.1, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 170 of 229
Chapter 8. Manufacturers
Article 1. Manufacturing Licenses
§17006. Manufacturing License Types.
The following manufacturing license types are available from the Department:
(a) “Type 7,” for extractions using volatile solvents as defined by section 15000(yyy). A
Type 7 licensee may also:
(1) Conduct extractions using nonvolatile solvents or mechanical methods on the
licensed premises, provided that the extraction process is noted on the application and
the relevant information pursuant to section 15011(b) is provided to the Department;
(2) Conduct infusion operations on the licensed premises, provided the infusion
operations and product types are noted on the application and the relevant information
pursuant to section 15011(b) is provided to the Department;
(3) Conduct packaging and labeling of cannabis products on the licensed premises; and
(4) Register and operate the licensed premises as a shared-use facility in accordance
with article 2 (commencing with section 17124) of chapter 8.
(b) “Type 6,” for extractions using mechanical methods or nonvolatile solvents as defined
by section 15000(uu). A Type 6 licensee may also:
(1) Conduct infusion operations on the licensed premises, provided the infusion
operations and product types are noted on the application and the relevant information
pursuant to section 15011(b) is provided to the Department;
(2) Conduct packaging and labeling of cannabis products on the licensed premises; and
(3) Register and operate the licensed premises as a shared-use facility in accordance
with article 2 (commencing with section 17124) of chapter 8.
(c) “Type N,” for manufacturers that produce cannabis products other than extracts or
concentrates that are produced through extraction. A Type N licensee may also:
(1) Conduct packaging and labeling of cannabis products on the licensed premises; and
(2) Register and operate the licensed premises as a shared-use facility in accordance
with article 2 (commencing with section 17124) of chapter 8.
(d) “Type P,” for manufacturers that only package or repackage cannabis products or
label or relabel cannabis product containers or wrappers.
(e) “Type S,” for manufacturers that conduct commercial cannabis manufacturing
activities in accordance with article 2 (commencing with section 17124) of chapter 8 at a
registered shared-use facility.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26012, 26050 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 171 of 229
§17009. Additional Activities.
In addition to the activities specified in section 17006, a licensed manufacturer may also
roll and package pre-rolls and package dried cannabis flower.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26012 and 26130, Business and Professions Code.
§17117. License Constraints.
(a) A manufacturer licensee shall not manufacture, prepare, package or label any
products other than cannabis products at the licensed premises.
(b) Notwithstanding subsection (a), a manufacturer licensee may manufacture, prepare,
package, and label non-cannabis-infused product samples. For purposes of this section,
a “non-cannabis-infused product sample” is a product that does not contain cannabis but
contains all other components of a corresponding cannabis product and is used to
provide information on flavor profiles, textures, smells, and other physical characteristics
of the cannabis product. Non-cannabis-infused product samples shall not be sold and
may be provided to other licensees except for licensed cultivators, transport only
distributors, testing laboratories, and cannabis event organizers.
(c) A manufacturer licensee shall only use cannabinoid concentrates and extracts that
are manufactured or processed from cannabis obtained from a licensed cannabis
cultivator.
(d) A manufacturer licensee shall not manufacture, prepare, package, or label cannabis
products in a location that is operating as a retail food establishment or as a processed
food registrant.
(e) A manufacturer licensee shall not manufacture, prepare, package, or label cannabis
products in a location that is licensed by the Department of Alcoholic Beverage Control
pursuant to division 9 (commencing with section 23000) of the Business and Professions
Code.
Authority: Section 26013 and 26130, Business and Professions Code. Reference:
Sections 26050 and 26140, Business and Professions Code.
Article 2. Shared-Use Facilities
§ 17124. Definitions.
For purposes of this article, the following definitions shall apply:
(a) “Common-use area” means any area of the manufacturer's registered shared-use
facility, including equipment that is available for use by more than one licensed
manufacturer, provided that the use of a common-use area is limited to one licensee at a
time.
(b) “Designated area” means the area of the manufacturer's registered shared-use facility
that is designated by the primary licensee for the sole and exclusive use of a Type S
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 172 of 229
licensee, including storage of the Type S licensee's cannabis, cannabis concentrates,
and cannabis products.
(c) “Primary licensee” means the Type 7, Type 6, or Type N licensee that has registered
and been approved to operate its licensed premises as a shared-use facility.
(d) “Shared-use facility” means a manufacturing premises operated by a Type 7, Type 6,
or Type N licensee in which Type S licensees are authorized to conduct manufacturing
operations.
(e) “Use agreement” means a written agreement between a primary licensee and a Type
S commercial cannabis business or licensee that specifies the designated area of the
Type S licensee, the days and hours in which the Type S licensee is assigned to use the
common-use area, any allocation of responsibility for compliance pursuant to section
17128, and an acknowledgement that the Type S licensee has sole and exclusive use of
the common-use area during the Type S licensee's assigned time period.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26001, 26050, 26051.5 and 26130, Business and Professions Code.
§17126. Registration to Operate a Shared-Use Facility.
(a) No licensed manufacturer shall operate as a shared-use facility without prior approval
by the Department.
(b) To register as a shared-use facility, a Type 7, Type 6, or Type N licensee shall submit
the following to the Department through the online licensing system:
(1) A copy of the license, permit, or other authorization issued by the local jurisdiction
that enables the licensee to operate as a shared-use facility. The Department shall
contact the applicable local jurisdiction to confirm the validity of the authorization upon
receipt of the application for registration. If the local jurisdiction does not respond within
10 calendar days, the Department shall consider the authorization valid.
(2) A registration form prescribed by the Department, which includes the following
information:
(A) The proposed occupancy schedule that specifies the days and hours the common-
use area will be available for use by Type S licensees and when the common-use area
will be used by the primary licensee. The occupancy schedule shall allow for
maintenance and sanitizing between uses by individual licensees.
(B) A diagram indicating:
(i) Each designated area for Type S licensee(s).
(ii) The common-use area, including identification of any shared equipment.
(c) The Department shall notify the Type 7, Type 6, or Type N licensee upon approval of
the registration to operate as a shared-use facility. Notification shall be made through the
online licensing system.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 173 of 229
(d) At least one business day prior to a Type S licensee commencing manufacturing
operations at a registered shared-use facility, the primary licensee shall provide written
notification to the Department. The notification to the Department shall include the Type
S licensee's business name, contact person, contact phone number, and license number.
The primary licensee shall also provide an updated occupancy schedule that includes the
Type S licensee and an updated diagram that specifies the Type S licensee's designated
area. Notification shall be provided by email or through the online licensing system.
(e) A primary licensee that wishes to discontinue operation as a shared-use facility may
cancel its registration by providing written notice to the Department and each Type S
licensee authorized to use the shared-use facility at least 30 calendar days prior to the
effective date of the cancellation.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26051.5, 26055 and 26130, Business and Professions Code.
§17127. Shared-Use Facility Conditions for Operation.
(a) A primary licensee shall operate the shared-use facility in accordance with the
conditions of operation specified in this section.
(b) Each Type S licensee shall be assigned a “designated area” that, at minimum:
(1) Is for exclusive use by the Type S licensee; and
(2) Provides an area for storage that is secure, fixed in place, locked with a commercial-
grade lock, and accessible only to the Type S licensee for storage of that Type S
licensee's cannabis, cannabis concentrates, and cannabis products.
(c) Any part of the premises used for manufacturing activities that is a common-use area
shall be occupied by only one licensee at a time by restricting the time period that each
licensee may use the common-use area. During the assigned time period, one licensee
shall have sole and exclusive occupancy of the common-use area.
(d) The use of the shared-use facility shall be restricted to the primary licensee and the
Type S licensees authorized by the Department to use the shared-use facility.
(e) Any cannabis product or other materials remaining after a Type S licensee ceases
operation and discontinues use of its designated area shall be considered cannabis
waste and disposed of by the primary licensee consistent with the requirements of the
Act and this division.
(f) The shared-use facility shall meet all applicable requirements of the Act and this
division.
(g) The occupancy schedule shall be prominently posted near the entrance to the
shared-use facility.
(h) The primary licensee may conduct manufacturing activities as permitted under its
Type 7, Type 6, or Type N license and may use the common-use area during its
scheduled time period.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 174 of 229
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
§17128. Shared-Use Facility Compliance Requirements.
(a) As part of the use agreement, the primary licensee and the Type S licensee(s) may
allocate responsibility for providing and maintaining commonly used equipment and
services, including, but not limited to, security systems, fire monitoring and protection
services, and waste disposal services. However, the Department may take enforcement
action against either the primary licensee or Type S licensee(s) regardless of the
allocation of responsibility in the use agreement.
(b) A primary licensee or a Type S licensee is liable for any violation found at the shared-
use facility during that licensee's scheduled occupancy or within that licensee's
designated area. However, a violation of any provision of the Act or this division may be
deemed a violation for which each Type S licensee and the primary licensee are
responsible. In the event of a recall or embargo of a cannabis product produced at a
shared-use facility, the Department, in its sole discretion, may include any or all cannabis
products produced at the shared-use facility.
(c) The occupancy schedule and designated area for a Type S licensee shall not be
altered without prior notification to the Department. Prior to making any changes to the
occupancy schedule or the designated area, written notification that includes the
intended changes shall be submitted by email or through the Department's online
licensing system.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26055 and 26130, Business and Professions Code.
Article 3. Solvent Use and Safety
§17202.1. General Requirements for Extraction and Post-Extraction Processing.
(a) A licensed manufacturer that uses a volatile solvent, a flammable liquid, or a solvent
that creates an asphyxiant gas shall ensure that the solvent is used in accordance with
the requirements of:
(1) Chapter 39 of the California Fire Code;
(2) Title 8, California Code of Regulations, sections 5416-5420, which includes ensuring
adequate ventilation and controlling sources of ignition;
(3) All Division of Occupational Safety and Health (Cal/OSHA) regulations related to the
processing, handling, and storage of the applicable solvent; and
(4) All fire, safety, and building code requirements related to the processing, handling,
and storage of the applicable solvent or gas.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 175 of 229
(b) No volatile solvent extraction or post-extraction processing operations or other
closed-loop system operations shall occur in an area zoned as residential.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code.
§17203. Permissible Extractions.
(a) Except as provided in subsection (b), cannabis extraction shall only be conducted
using the following methods:
(1) Mechanical extraction;
(2) Chemical extraction using a nonvolatile solvent, as defined in section 15000(uu).
(3) Chemical extraction using CO
2
gas in a professional closed-loop extraction system.
(4) Chemical extraction using a volatile solvent, as defined in section 15000(yyy), in a
professional closed-loop extraction system; or
(5) Any other method authorized by the Department pursuant to subsection (b).
(b) To request authorization from the Department to conduct cannabis extraction using a
method other than those specified in subsections (a)(1) through (4), the applicant or
licensee shall submit a detailed description of the extraction method, including any
documentation that validates the method and any safety procedures to be utilized to
mitigate any risk to public or worker health and safety.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
§17204. Solvent Requirements.
(a) Any solvents used for extraction or post-extraction processing shall meet the following
minimum purity requirements:
(1) Hydrocarbon-based solvents shall be at least 99 percent purity.
(2) Nonhydrocarbon-based solvents shall be food-grade.
(3) CO
2
gas used for extraction shall be food-grade.
(4) Ethanol shall be food-grade in accordance with 21 CFR, part 184, subpart B, section
184.1293.
(A) Solutions of ethanol may be used if the ethanol component is food-grade and it is
combined with another food-grade solvent or a hydrocarbon-based solvent that meets
the requirements of subsection (a)(1).
(B) Solutions of ethanol that include one or more volatile solvents that total 5% or less by
volume of the total ethanol solution volume are considered nonvolatile solvents as
defined in section 15000(uu).
(5) Water and ice shall be potable.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 176 of 229
(6) Dry ice shall be food-grade.
(b) The licensed manufacturer shall maintain copies of the safety data sheets for any
chemical solvents used and make these records readily available to employees and to
the Department upon request.
(c) The licensed manufacturer shall maintain documentation evidencing the purity of any
chemical solvents used and make these records readily available to employees and to
the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code.
§17205. Additional Requirements for Ethanol Operations.
A licensed manufacturer that uses ethanol in manufacturing operations for extractions or
post-extraction processing shall receive approval for the facility and equipment from the
local fire code official prior to commencing operations, if required by local ordinance.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
§17206. Closed-Loop Extraction System Requirements.
(a) Chemical extractions using CO
2
; a volatile solvent; or chlorofluorocarbon,
hydrocarbon, or other fluorinated gas shall be conducted in a professional closed-loop
extraction system designed to recover the solvents that are certified in accordance with
section 17206.1.
(b) The licensed manufacturer shall establish and implement procedures to ensure that
the closed-loop extraction system is maintained in accordance with the equipment
manufacturer specifications. The licensed manufacturer shall maintain logs documenting
the date(s) of maintenance; description of the maintenance done, including any machine
parts that were replaced; and the initials of the employee conducting the maintenance.
(c) The licensed manufacturer shall establish and implement procedures to ensure
routine verification that the system is operating in accordance with equipment
manufacturer specifications and continues to comply with fire, safety, and building code
requirements. The licensed manufacturer shall conduct any verification recommended by
the equipment manufacturer. The licensed manufacturer shall maintain logs documenting
the date(s) of verification, description of the verification method, and the initials of the
employee conducting the verification.
(d) A licensed manufacturer shall develop and implement written standard operating
procedures, good manufacturing practices, and a training plan prior to using the closed-
loop system. Any personnel using solvents or gases in a closed-loop system shall have
direct access to applicable safety data sheets. Personnel shall be trained on how to use
the system and handle and store solvents and gases safely prior to operating the system.
The training shall be documented in accordance with section 17211.1.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 177 of 229
(e) Professional closed-loop systems, other equipment used, the extraction operation,
and facilities shall be approved for use by the local fire code official prior to commencing
operation of the closed-loop system, if required by local ordinance. Licensed
manufacturers shall provide documentation confirming compliance with this subsection to
the Department upon request.
(f) The facility shall have a gas detection system that meets the requirements of title 24,
California Code of Regulations, sections 3905.1-3905.2.
(g) All procedures and logs described in this section shall be in writing and made
available to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26105 and 26130, Business and Professions Code.
§17206.1. Certification of Closed-Loop Systems.
(a) The closed-loop system shall be commercially manufactured and bear a permanently
affixed and visible serial number.
(b) After installation and before use of a closed-loop system, the licensed manufacturer
shall have the closed-loop system certified by a California-licensed engineer that the
system was commercially manufactured, safe for use with the intended solvent, and built
and installed to codes of recognized and generally accepted good engineering practices.
The certification document shall contain:
(1) The name, signature and stamp of the California-licensed professional engineer;
(2) The serial number of the extraction unit being certified;
(3) A list of the solvent(s) deemed safe for use with the equipment; and
(4) The address of the premises where the extraction unit was certified.
(c) The licensed manufacturer shall maintain the current certification document and make
it available to the Department upon request.
(d) The closed-loop system shall be recertified if any of the following occur:
(1) The system is modified in a manner such that its operation no longer conforms to the
original equipment manufacturer specifications, such as by adding or removing
components that expand or reduce its capacity.
(2) The system is moved to a different premises.
(3) Five years have elapsed since the date of the certification.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26130 and 26132, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 178 of 229
Article 4. Good Manufacturing Practices
§17207. Manufacturing Practices Definitions.
In addition to the definitions in section 26001 of the Act and section 15000 of this
division, the following definitions shall govern the construction of this chapter:
(a) “Allergen cross-contact” means the unintentional incorporation of a food allergen into
a cannabis product.
(b) “Component” means any substance or item intended for use in the manufacture of a
cannabis product, including those substances or items that are not intended to appear in
the finished cannabis product. “Component” includes cannabis, cannabis products used
as ingredients, raw materials, other ingredients, and processing aids.
(c) “Contact surface” means any surface that contacts cannabis products and cannabis
product components and those surfaces from which drainage, or other transfer, onto the
cannabis product or cannabis product components, occurs during the normal course of
operations. Examples of contact surfaces include containers, utensils, tables, and
equipment.
(d) “Easily cleanable” means a characteristic of a surface that allows effective removal of
soil, food residue, or other organic or inorganic materials by normal cleaning methods.
(e) “Environmental pathogen” means a pathogen capable of surviving and persisting
within the manufacturing environment such that cannabis products may be contaminated
and may result in illness if consumed or used without treatment to significantly minimize
the environmental pathogen. Examples of environmental pathogens include Listeria
monocytogenes and Salmonella spp. but do not include the spores of pathogenic spore-
forming bacteria.
(f) “Hazard” means any biological, chemical, radiological, or physical agent that has the
potential to cause illness or injury.
(g) “Holding” means storage of cannabis or cannabis products and includes activities
performed incidental to storage of a cannabis product and activities performed as a
practical necessity for the distribution of that cannabis product.
(h) “Microorganisms” means yeasts, molds, bacteria, viruses, protozoa, and microscopic
parasites and includes species that are pathogens. The term “undesirable
microorganisms” includes those microorganisms that are pathogens, that subject a
cannabis product to decomposition, that indicate that a cannabis product is contaminated
with filth, or that otherwise may cause a cannabis product to be adulterated.
(i) “Monitor” means to conduct a planned sequence of observations or measurements to
assess whether preventive measures are operating as intended.
(j) “Pathogen” means a microorganism that can cause illness or injury.
(k) “Potable” means water that meets the requirements of Health and Safety Code
section 113869.
(l) “Preventive measures” means those risk-based, reasonably appropriate procedures,
practices, and processes that a person knowledgeable about the safe manufacturing,
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 179 of 229
processing, packing, or holding of food would employ to significantly minimize or prevent
the hazards identified pursuant to a product quality plan as specified in section 17214.
(m) “Processing aid” means any substance that is added to a cannabis product during
manufacture but is removed in some manner from the cannabis product before it is
packaged in its finished form. This includes substances that are converted into
constituents normally present in the product, and do not significantly increase the amount
of the constituent naturally found in the product. This also includes substances that are
added to a product for their technical or functional effect in the processing but are
present in the finished product at insignificant levels and do not have any technical or
functional effect in that product.
(n) “Qualified individual” means a person who has the education, training, or experience
(or a combination thereof) necessary to manufacture quality cannabis products as
appropriate to the individual's assigned duties. A qualified individual may be, but is not
required to be, an employee of the licensed manufacturer.
(o) “Quality control” means a planned and systematic operation or procedure for ensuring
the quality of a cannabis product.
(p) “Quality control operation” means a planned and systematic procedure for taking all
actions necessary to prevent cannabis product(s) from being adulterated or misbranded.
(q) “Quality control personnel” means any person, persons, or group designated by the
licensed manufacturer to be responsible for quality control operations.
(r) “Raw material” means any unprocessed material in its raw or natural state that is
intended to become part of the components of a cannabis product.
(s) “Sanitize” means to treat cleaned surfaces by a process that is effective in destroying
vegetative cells of pathogens and substantially reducing numbers of other undesirable
microorganisms, but without adversely affecting the product or its safety for the
consumer.
(t) “Smooth” means any of the following:
(1) A contact surface that is free of pits, pinholes, cracks, crevices, inclusions, rough
edges, and other surface imperfections detectable by visual or tactile inspection.
(2) A floor, wall, or ceiling having an even or level surface with no roughness or
projections that render it difficult to clean.
(u) “Utensil” means an implement, tool, or container used in the storage, preparation,
manufacture, or processing of cannabis and cannabis products. In addition to
kitchenware, examples of utensils include, but are not limited to, gloves, screens, sieves,
implements to create pre-rolls, buckets, and scissors.
(v) “Validate” means obtaining and evaluating scientific and technical evidence that a
control measure, combination of control measures, or set of quality control procedures,
when properly implemented, is capable of ensuring the quality of a cannabis product or
effectively controlling an identified hazard.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 180 of 229
(w) “Verification” means the application of methods, procedures, tests, or other
evaluations, in addition to monitoring, to determine whether a control measure or
combination of control measures is or has been operating as intended and to establish
the validity of the quality control procedures.
(x) “Yield” means the quantity of a particular cannabis product expected to be produced
at a given step of manufacture or packaging, as identified in the master manufacturing
protocol. The expected yield is based upon the quantity of components or packaging to
be used, in the absence of any loss or error in actual production. “Actual yield” means the
quantity of a particular cannabis product that is actually produced at a given step of
manufacture or packaging that is recorded in the batch production record.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26001 and 26130, Business and Professions Code.
§17208. Quality Control Program.
(a) A licensed manufacturer shall establish and implement a quality control program to
ensure that cannabis products are not adulterated or misbranded. The quality control
program shall describe how the licensee will comply with the following:
(1) Grounds, building, and manufacturing premises standards, as specified in section
17209;
(2) Equipment and utensil requirements, as specified in section 17210;
(3) Personnel procedures, as specified in section 17211;
(4) Cannabis product component procedures, as specified in section 17212; and
(5) Manufacturing processes and procedures, as specified in section 17213.
(b) The quality control program shall be under the supervision of one or more qualified
individuals assigned responsibility for this function.
(c) For purposes of this article, for those requirements that are contained in the Health
and Safety Code, use of the term “food” shall include cannabis, cannabis products,
components, and contact surfaces.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17209. Grounds, Building, and Manufacturing Premises.
(a) Exterior facility and grounds. A licensed manufacturer shall ensure the facility exterior
and grounds under the licensed manufacturer’s control meet the following minimum
standards:
(1) Grounds shall be equipped with draining areas in order to prevent pooled or standing
water;
(2) Weeds, grass, and vegetation shall be cut within the immediate vicinity of the
cannabis manufacturing premises, litter and waste shall be removed, and equipment
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 181 of 229
shall be stored in order to minimize the potential for the grounds to constitute an
attractant, breeding place, or harborage for pests;
(3) Roads, yards, and parking lots shall be maintained so that these areas do not
constitute a source of contamination in areas where cannabis products are handled or
transported;
(4) Openings into the building (such as windows, exhaust fans, ventilation ducts, or
plumbing vent pipes) shall be screened, sealed, or otherwise protected to minimize
potential for pests to enter the building;
(5) Waste treatment and disposal systems shall be provided and maintained so as to
prevent contamination in areas where cannabis products may be exposed to such a
system’s waste or waste by-products.
(6) A licensed manufacturer shall implement precautions within the premises, such as
inspection or extermination, if the premises is bordered by grounds outside the licensed
manufacturer’s control that are not maintained in the manner described in subsections
(1) through (5), in order to eliminate any pests, dirt, and filth that pose a source of
cannabis product contamination. Any use of insecticide, rodenticide, or other pesticide
within the premises shall meet the requirements of Health and Safety Code section
114254.
(b) Interior facility. A licensed manufacturer shall ensure construction, design, and
maintenance of the interior of the manufacturing premises as follows:
(1) Walls, ceilings, and floors. Walls, ceilings, and floors shall be constructed of material
that is smooth, nonporous, easily cleanable, corrosion-resistant, and suitable to the
activity that will be conducted. Fixtures, ducts, and pipes shall not pose a source of drip
or condensate that may contaminate cannabis, cannabis products, components, contact
surfaces, or packaging material.
(2) Lighting. Interior facility lighting shall meet the requirements of the Health and Safety
Code section 114252, subdivisions (a)(1) and (3), (b)(3) and (4), and (c). Interior facility
lighting shall also meet the requirements for shatter-resistant lighting in Health and
Safety Code section 114252.1. The requirements of Health and Safety Code section
114252.1(a), shall also apply to all areas where glass breakage may result in the
contamination of exposed cannabis, cannabis products, components, contact surfaces,
or packaging material.
(3) Plumbing system and fixtures.
(A) Water supply. Running water shall be supplied as required by Health and Safety
Code section 114192 in all areas where required for the manufacturing of cannabis
products; in all areas used for the cleaning of equipment, utensils, and packaging
materials; and for employee sanitary facilities. Water that contacts cannabis, cannabis
products, components, contact surfaces, or packaging materials shall be potable.
(B) Plumbing. Plumbing systems shall meet the requirements of Health and Safety Code
section 114190.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 182 of 229
(C) Sewage disposal. The sewage system shall be maintained and kept in good repair so
that it does not pose a potential source of contamination of cannabis, cannabis products,
components, contact surfaces, or packaging materials.
(D) Toilet facilities. A licensed manufacturer shall provide employees with access to toilet
facilities that meet the requirements of Health and Safety Code section 114250. Toilet
facilities shall be kept clean and shall not pose a potential source of contamination of
cannabis, components, cannabis products, contact surfaces, or packaging materials.
(E) Hand-washing facilities. A licensed manufacturer shall provide hand-washing facilities
that meet the requirements of Health and Safety Code sections 113953(a)-(d) and
113953.2.
(F) Waste disposal. A licensed manufacturer shall provide for waste disposal in
accordance with Health and Safety Code sections 114244(a) and (c) and 114245.1.
Cannabis waste shall be disposed of in accordance with section 17223.
(4) Ventilation. Ventilation systems shall meet the requirements of Health and Safety
Code sections 114149 and 114149.3.
(5) Cleaning and maintenance. The premises, including any fixtures, and other physical
facilities therein, shall be maintained in a clean and sanitary condition and kept in good
repair so as to prevent cannabis products from becoming adulterated, and shall meet the
requirements of Health and Safety Code section 114257.1.
(A) The premises shall have a janitorial facility that meets the requirements of Health and
Safety Code section 114279(a).
(B) Cleaning equipment and supplies shall be stored in a manner that meets the
requirements of Health and Safety Code section 114281.
(C) Poisonous or toxic materials such as cleaning compounds, sanitizing agents, and
pesticide chemicals that are necessary for premises and equipment maintenance and
operation shall be handled and stored in a manner that meets the requirements of Health
and Safety Code sections 114254.1, 114254.2 and 114254.3.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17210. Equipment and Utensils.
(a) Design and construction. Equipment and utensils shall meet the requirements of
Health and Safety Code sections 114130.1, 114130.2, 114130.3, and 114130.4 and shall
be used in accordance with their operating instructions to avoid the adulteration of
cannabis products with lubricants, fuel, metal fragments, contaminated water, or any
other contaminants.
(b) Installation. Equipment shall be installed so as to allow cleaning and maintenance of
the equipment and of adjacent spaces. Equipment that is not easily moveable shall meet
the requirements of Health and Safety Code section 114169.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 183 of 229
(c) Cleaning, sanitizing, and maintenance. Equipment and utensils shall be maintained in
a clean and sanitary condition and kept in good repair. The quality control program for
cleaning, sanitizing, and maintenance of equipment and utensils shall include the
following elements, at minimum:
(1) A detailed, written procedure for cleaning, sanitizing, and maintaining (including
calibrating) equipment and utensils;
(2) A schedule for cleaning, sanitizing, and maintaining equipment and utensils;
(3) A log for documentation of the date and time of maintenance, cleaning, and sanitizing
of equipment and utensils; and
(4) A procedure for storing cleaned and sanitized equipment and utensils in a manner to
protect the equipment and utensils from contamination.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17211. Manufacturing Personnel.
(a) Licensed manufacturers shall establish and implement procedures for personnel that
include, at minimum:
(1) Disease control. Any individual who by medical examination or supervisory
observation is shown to have, or appears to have, an illness specified in Health and
Safety Code section 113949.2(a) or an open lesion (e.g., boil, sore, cut, rash, or infected
wound), unless covered in accordance with the requirements of Health and Safety Code
section 113949.2(b), shall be excluded from any manufacturing operations until their
health condition is corrected. Personnel shall be instructed to report such health
conditions to their supervisors.
(2) Cleanliness. All individuals working in direct contact with cannabis, cannabis
products, components, contact surfaces, and packaging materials shall maintain
personal cleanliness in order to protect against allergen cross-contact and contamination
of cannabis products while on duty. The methods for maintaining personal cleanliness
include:
(A) Wearing clean outer clothing to protect against allergen cross-contact and
contamination of cannabis, cannabis products, components, contact surfaces, and
packaging materials;
(B) Washing hands thoroughly in a hand-washing facility that meets the requirements of
section 17209 before starting work, after each absence from a work station, at any time
specified in Health and Safety Code section 113953.3, and at any time when the hands
may have become soiled or contaminated;
(C) Removing all unsecured jewelry and other objects that might fall into cannabis,
cannabis products, components, equipment, or containers. Hand jewelry that cannot be
sanitized shall be removed during periods in which cannabis products are manipulated
by hand. If such hand jewelry cannot be removed, it shall be covered by material that can
be maintained in an intact, clean, and sanitary condition and that effectively protects
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 184 of 229
against contamination by these objects of cannabis, cannabis products, components,
contact surfaces, and packaging materials;
(D) Maintaining gloves used in cannabis product handling in an intact, clean, and sanitary
condition;
(E) Wearing hair nets, caps, beard covers, or other hair restraints that are designed and
worn to prevent hair contact with cannabis, cannabis products, components, contact
surfaces, and packaging materials;
(F) Storing clothing and personal belongings in areas separate from those where
cannabis products are exposed or where equipment or utensils are washed; and
(G) Confining the following activities to areas separate from those where cannabis
products may be exposed or where equipment or utensils are washed: eating food,
chewing gum, drinking beverages, and using tobacco.
(b) Nothing in this section prohibits a licensed manufacturer from establishing additional
precautions to protect against allergen cross-contact and contamination of cannabis,
cannabis products, components, contact surfaces, and packaging materials by
microorganisms or foreign substances (e.g., perspiration, hair, cosmetics, tobacco,
chemicals, and medicines applied to the skin).
(c) The procedures for manufacturing personnel shall be in writing and made available to
the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17211.1. Training Program.
(a) A manufacturing licensee shall establish and implement a training program to ensure
that all personnel present at the premises are provided information and training that, at
minimum, covers the following topics:
(1) Within 30 days of the start of employment:
(A) Health and safety hazards;
(B) Hazards presented by all solvents or chemicals used at the licensed premises as
described in the safety data sheet for each solvent or chemical;
(C) Emergency response procedures;
(D) Security procedures;
(E) Record keeping requirements; and
(F) Training requirements.
(2) Prior to independently engaging in any cannabis manufacturing process:
(A) An overview of the cannabis manufacturing process and standard operating
procedure(s);
(B) Quality control procedures;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 185 of 229
(C) Product quality plans developed in accordance with section 17214;
(D) Proper and safe usage of equipment or machinery;
(E) Safe work practices applicable to an employee’s job tasks, including appropriate use
of any necessary safety or sanitary equipment;
(F) Cleaning and maintenance requirements;
(G) Emergency operations, including shutdown; and
(H) Any additional information reasonably related to an employee’s job duties.
(3) Additionally, a manufacturing licensee that produces edible cannabis products shall
ensure that all personnel who prepare, handle, or package edible products successfully
complete a California food handler certificate course from an entity accredited by the
American National Standards Institute (ANSI) within 90 days of commencing employment
at the premises and again every three years during employment. A manufacturing
licensee shall obtain documentation evidencing the fulfillment of this requirement;
(b) A manufacturing licensee shall ensure that all personnel receive annual refresher
training to cover, at minimum, the topics listed in subsection (a). This annual refresher
training must be completed within 12 months of the previous training completion date.
(c) A manufacturing licensee shall maintain a record of training containing, at minimum:
(1) A list of all personnel at the premises including, at minimum, name and job duties of
each individual;
(2) Documentation of training topics and dates of training completion, including refresher
training, for all personnel;
(3) The signatures of each individual and the licensee verifying receipt and
understanding of each training or refresher training completed by the individual; and
(4) Any official documentation attesting to the successful completion of required training
by personnel.
(d) A manufacturing licensee may assign responsibility for the training of individual
personnel to supervisory personnel. Assigned supervisory personnel must have the
education, training, or experience (or a combination thereof) necessary to ensure the
production of quality cannabis products by all personnel. The assigned training personnel
shall sign and date a document on an annual basis attesting that they received and
understands all information that will be provided to personnel in the training program.
This documentation shall be maintained as part of the record requirements in subsection
(c).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26130 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 186 of 229
§17212. Cannabis Product Components.
(a) In order to prevent adulteration of cannabis products, licensed manufacturers shall
establish and implement written policies and procedures to ensure and maintain the
quality of product components.
(b) Components are subject to the following minimum requirements:
(1) Components that are food must be obtained from a source that complies with federal
and state food laws.
(2) Raw materials and other components shall be inspected upon intake to ensure that
they are clean and suitable for manufacturing into cannabis products, and shall be stored
under conditions that protect against allergen cross-contact and contamination and
minimize deterioration.
(3) Raw materials shall be washed or cleaned as necessary to remove soil and other
visible contaminants. Water used for washing, rinsing, or conveying cannabis product
ingredients shall be potable.
(4) Raw materials and other components shall not contain levels of microorganisms that
render the cannabis product injurious to human health, or shall be pasteurized or
otherwise treated during manufacturing so that they no longer contain levels of
microorganisms that would cause the cannabis product to be adulterated.
(5) Raw materials and other components susceptible to contamination with aflatoxin or
other natural toxins, pests, or extraneous material shall not exceed generally acceptable
limits set by the U.S. Food and Drug Administration in the Defect Levels Handbook (Rev.
February 2005), which is hereby incorporated by reference, before these raw materials or
other ingredients are incorporated into cannabis products.
(6) Raw materials and other components shall be held in containers designed and
constructed to protect against allergen cross-contact or contamination, and shall be held
at a temperature and relative humidity and in a manner that prevents the cannabis
products from becoming adulterated.
(7) Frozen raw materials and other components shall be kept frozen. If thawing is
required prior to use, it shall be done in a manner that prevents the raw materials and
other ingredients from becoming adulterated.
(8) Raw materials and other components that are food allergens shall be identified and
held in a manner that prevents cross-contact with other raw materials or ingredients.
(c) Holding and storage of raw materials and other components shall meet the
requirements of Health and Safety Code sections 114047(a) and (b), 114049, and
114051.
(d) The policies and procedures for components shall be in writing and made available to
the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 187 of 229
§17213. Manufacturing Procedures.
(a) A licensed manufacturer shall implement and maintain the following manufacturing
procedures that ensure cannabis product quality:
(1) A product quality plan, as described in section 17214;
(2) Master manufacturing protocols, as described in section 17215, for each unique
formulation of cannabis product manufactured to ensure only intended components are
included and that the cannabis product is packaged and labeled in accordance with
product specifications and this division; and
(3) Batch production records, as described in section 17216, to document the production
process and, if needed, to verify that the established procedures, including the preventive
measures and master manufacturing protocol, were implemented correctly.
(b) All manufacturing records and procedures shall be in writing and are subject to
inspection by the Department, its inspectors and agents.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17214. Product Quality Plan.
(a) A licensed manufacturer shall establish and implement a written product quality plan
for each type of product manufactured at the premises. The product quality plan shall
address the hazards associated with the premises or the manufacturing process that, if
not properly mitigated, may cause the product to be adulterated or misbranded, or may
cause the product to fail laboratory testing or quality assurance review.
(b) To create the product quality plan, the licensed manufacturer shall conduct a
comprehensive assessment of the overall manufacturing process, as follows:
(1) Identify each step from component intake through transfer of product from the
premises;
(2) Evaluate the potential risks associated with each step;
(3) Identify the preventive measures that shall be taken to mitigate the potential risks
identified;
(4) Identify the methods to evaluate and monitor the effectiveness of the preventive
measures; and
(5) Identify any action to take if a preventive measure was unsuccessful.
(c) The licensed manufacturer shall evaluate the following potential risks to cannabis
product quality that could be introduced during manufacturing operations:
(1) Biological hazards, including microbiological hazards;
(2) Chemical hazards, including radiological hazards, pesticide contamination, solvent or
other residue, natural toxins, decomposition, or allergens;
(3) Physical hazards, such as stone, glass, metal fragments, hair, or insects; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 188 of 229
(4) Process failures that may lead to product contamination, allergen cross-contact,
packaging errors, labeling errors, or other errors affecting cannabis product quality.
(d) The licensed manufacturer shall identify and implement the preventive measure(s)
necessary to mitigate each potential risk identified pursuant to subsection (c). Examples
of preventive measures include, but are not limited to:
(1) Cleaning and sanitizing of equipment and utensils to mitigate against risk of
microbiological hazards;
(2) Conducting in-house testing of raw cannabis to mitigate against the risk of pesticide
contamination;
(3) Establishing an allergen control program to ensure that allergen cross-contact does
not occur between product types; and
(4) Implementing procedures to ensure homogeneity of cannabinoids into a cannabis
product to mitigate against the risk of a non-homogeneous product.
(e) The licensed manufacturer shall identify and implement methods to evaluate and
monitor the effectiveness of the preventive measures in mitigating the potential risks
identified in subsection (c). Methods for evaluation and monitoring of preventive
measures include, but are not limited to, the following:
(1) Review of test results conducted to determine contamination such as pesticide
residue;
(2) Maintaining and reviewing cleaning, sanitizing, or maintenance logs to verify such
actions have been taken;
(3) Conducting environmental testing to determine if equipment or utensils are
contaminated with pathogens; and
(4) Monitoring the temperature of raw materials that need to be held below 41 degrees
Fahrenheit to prevent microbial contamination.
(f) The licensed manufacturer shall identify actions to be taken if the evaluation and
monitoring of the preventive measure indicates that a risk was not properly mitigated.
The corrective action shall be specific to the type of product under evaluation and the
specific risk to be mitigated. Examples of corrective actions include, but are not limited to:
(1) Destruction of product components or finished cannabis product;
(2) Further manufacturing of cannabis extract to remove impurities; and
(3) Reworking the unfinished product to further homogenize the cannabinoids.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 189 of 229
(g) The licensed manufacturer shall maintain the product quality plans and
documentation of preventive measures, monitoring results, and corrective actions and
make the records available to the Department upon the Department’s request, including
during the Department’s onsite inspection of the premises. Nothing in this chapter
requires the disclosure of product quality plans other than to the Department and its
inspectors and agents. The licensed manufacturer may consider the product quality plan
subject to trade secret protection.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17215. Master Manufacturing Protocol.
(a) A licensed manufacturer shall establish and follow a written master manufacturing
protocol for each unique formulation of cannabis product manufactured, and for each
batch size, in order to mitigate the potential for adulteration through incorporation of
incorrect amounts of cannabinoids, unintended ingredients, or hazards identified in the
product quality plan; the potential for misbranding through incorporation of ingredients
not identified on the label or mislabeling of the product; and to ensure uniformity in
finished batches and across all batches produced.
(b) The master manufacturing protocol shall include:
(1) The name and intended cannabinoid concentration(s) of the cannabis product to be
manufactured;
(2) A complete list of components to be used;
(3) The weight or measure of each component to be used. The master manufacturing
protocol for any given product may include the ability to adjust the weight or measure of
cannabinoid-containing ingredients in order to account for the variability of cannabinoid
content in harvest batches;
(4) The identity and weight or measure of each ingredient that will be declared on the
ingredients list of the cannabis product;
(5) The expected yield of the finished cannabis product, based upon the quantity of
components or packaging to be used in the absence of any loss or error in actual
production, and the maximum and minimum percentages of expected yield beyond which
a deviation investigation of a batch will be necessary, material review will be conducted,
and a decision on the disposition of the product will be made;
(6) A description of packaging and a representative label, or a cross-reference to the
physical location of the actual or representative label;
(7) The expected number of packages and labels to be used, if the cannabis product will
leave the manufacturing premises in final form and packaged and labeled as it will be
sold at retail;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 190 of 229
(8) Written instructions for each point, step, or stage in the manufacturing process; and
(9) Written instructions for any action to mitigate risk(s) identified in the product quality
plan.
(c) Master manufacturing protocols shall be in writing and made available to the
Department upon request.
(d) Nothing in this chapter requires disclosure of the master manufacturing protocol to
any person other than the individuals conducting activities that utilize the protocol or to
the Department and its inspectors and agents. The licensee may consider the master
manufacturing protocol subject to trade secret protection.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17216. Batch Production Record.
(a) A licensed manufacturer shall prepare a written batch production record every time a
batch of a cannabis product is manufactured or a batch of cannabis or cannabis product
is remediated. The batch production record shall accurately follow the appropriate master
manufacturing protocol, and each step of the protocol shall be performed in the
production of the batch.
(b) The batch production record shall document all the following information about each
batch at the time the batch is produced or remediated:
(1) The licensee number or premises address of the facility at which the production
occurred;
(2) The date each step of the master manufacturing protocol was performed and the
initials of the employee performing each step;
(3) The identity and weight or measure of each component used in production of the
batch;
(4) The specific equipment and processing lines used in producing or remediating the
batch;
(5) A statement of the actual yield and the percentage difference from expected yield at
appropriate phases of manufacturing as identified in the master manufacturing protocol;
(6) If the product quality plan identifies any monitoring needed to ensure product safety,
the results of the monitoring action performed;
(7) An actual or representative label or other identification of the label to be used for the
cannabis product;
(8) The actual quantity of the packages and labels used, and the difference from the
expected quantity to be used, if the cannabis product will leave the manufacturing
premises as a final form cannabis good;
(9) Documentation that quality control personnel:
(A) Reviewed the batch production record;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 191 of 229
(B) Reviewed all required monitoring operation(s); and
(C) Either approved and released, or rejected, the finished cannabis product, including
any remediated, repackaged or relabeled cannabis product;
(10) Documentation, at the time of performance, of any investigation identified in the
product quality plan or master manufacturing protocol, including deviations from the
expected yield or package and label count; and
(11) The UID and the batch or lot number of the finished batch of cannabis product and
the UIDs of all cannabis or cannabis products used in the batch.
(c) The batch production record shall:
(1) Contain the actual values and observations obtained during monitoring and, as
appropriate, during verification activities;
(2) Be accurate, indelible, and legible;
(3) Be created concurrently with performance of the activity documented; and
(4) Be as detailed as necessary to provide a history of work performed.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
§17217. Standard Operating Procedures.
(a) A licensed manufacturer shall establish and maintain written standard operating
procedures that are easily accessible to onsite personnel. The standard operating
procedures shall, at minimum, include the following:
(1) Policies or procedures developed in accordance with the security plan required by
section 15042.1;
(2) Emergency response procedures, including safety data sheets for any chemicals
onsite;
(3) Policies and procedures developed in accordance with section 17206;
(4) Policies and procedures developed in accordance with this article;
(5) Procedures for complying with the track and trace requirements established in article
6 of chapter 1; and
(6) Cannabis waste management procedures in compliance with section 17223.
(b) Procedures shall be written in English but may be made available in other languages,
as necessary for the licensee's personnel.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26130 and 26160, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 192 of 229
§17218. Inventory Control – Cannabis and Cannabis Products.
(a) A licensed manufacturer shall establish and implement a written inventory control
plan capable of tracking the location and disposition of all cannabis and cannabis
products at the licensed premises.
(b) A licensed manufacturer shall reconcile the on-hand inventory of cannabis and
cannabis products at the licensed premises with the records in the track and trace
system at least once every thirty (30) calendar days.
(c) If a licensed manufacturer finds a discrepancy between the on-hand inventory and the
track and trace system, the licensee shall conduct an audit.
(d) If the inventory reconciliation conducted pursuant to subsection (b) or the audit
conducted pursuant to subsection (c) reveals a discrepancy that is significant pursuant to
section 15034, the licensed manufacturer shall notify the Department within 24 hours of
the discovery. The result of inventory reconciliation and any audit shall be retained in the
licensed manufacturer’s records and shall be made available to the Department upon
request.
(e) The licensed manufacturer shall maintain sales invoices and receipts for all batches
of cannabis and cannabis products received at and transferred from its licensed
premises. The licensed manufacturer shall prepare a sales invoice or receipt that meets
the requirements of Business and Professions Code section 26161 prior to each sale or
transport of cannabis products from the premises.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Article 5. Special Requirements
§17219. Juice Manufacturing.
Manufacturers of cannabis juice or cannabis-infused juice or beverages shall prepare
and implement a written juice hazard analysis and critical control plan in accordance with
the requirements of title 21, Code of Federal Regulations, Part 120, subpart A, section
120.8 and subpart B, section 120.24, (Rev. January 2001), which are hereby
incorporated by reference. The hazard analysis and critical control plan shall be made
available to the Department upon request.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 193 of 229
§17220. Dried Meat Manufacturing.
Manufacturing of cannabis-infused dried meat products shall be conducted in
accordance with the United States Department of Agriculture FSIS Compliance Guideline
for Meat and Poultry Jerky Produced by Small and Very Small Establishments: 2014
Compliance Guideline (Rev. 2014), which is hereby incorporated by reference. Meat for
manufacturing into dried meat products shall be acquired from a commercially-available
source.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26039.6, Business and Professions Code.
Chapter 9. Other Responsibilities
§17221. Weighing Devices and Weighmasters.
(a) A licensee shall use weighing devices approved, tested, and sealed in accordance
with the requirements in Business and Professions Code, division 5, chapter 5
(commencing with section 12500) and its implementing regulations, and registered with
the county sealer consistent with Business and Professions Code, division 5, chapter 2
(commencing with section 12240) and its implementing regulations whenever:
(1) Cannabis or cannabis product is bought or sold by weight or count;
(2) Cannabis or cannabis product is packaged for sale by weight or count;
(3) Cannabis or cannabis product is weighed or counted for entry into the track and trace
system; and
(4) The weighing device is used for commercial purposes as defined in Business and
Professions Code section 12500.
(b) Whenever the licensee is determining the weight, measure, or count of cannabis and
cannabis products for the purposes specified in subsection (a), the weight, measure, or
count shall be determined by a licensed weighmaster in compliance with the
requirements of Business and Professions Code, division 5, chapter 7 (commencing with
section 12700).
(c) A licensee shall obtain a weighmaster certificate that complies with the requirements
of Business and Professions Code, division 5, chapter 7 (commencing with section
12700) whenever:
(1) Payment for the cannabis or cannabis product is dependent upon the quantity
determined by the weighmaster; or
(2) Payment for service or processing of the cannabis or cannabis product is dependent
upon the quantity determined by the weighmaster.
(d) The weighmaster certificate shall not be required when cannabis or cannabis
products are weighed or counted for entry into the track and trace system.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 194 of 229
(e) In any county in which a county sealer refuses or is not required to approve, register,
test, and seal weighing devices used by a licensee, the licensee may have a service
agency registered pursuant to Business and Professions Code, division 5, chapter 5.5
perform testing of a weighing device consistent with the requirements in title 4, California
Code of Regulations, section 4070. The licensee shall keep a copy of the registered
service agency's written inspection report attesting to the accuracy of the device for each
device operated by the licensee.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26060, Business and Professions Code.
§17223. Waste Management.
(a) A licensee shall dispose of all waste in accordance with the Public Resources Code
and any other applicable state and local laws. It is the responsibility of the licensee to
properly evaluate waste to determine if it should be designated and handled as a
hazardous waste, as defined in Public Resources Code section 40141.
(b) A licensee shall establish and implement a written cannabis waste management plan
that describes the method or methods by which the licensee will dispose of cannabis
waste, as applicable to the licensee’s activities. A licensee shall dispose of cannabis
waste using only the following methods:
(1) On-premises composting of cannabis waste.
(2) 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 in conjunction with a regular organic waste collection route.
(3) Self-haul cannabis waste to one or more of the following:
(A) A staffed, fully permitted solid waste landfill or transformation facility;
(B) A staffed, fully permitted composting facility or staffed composting operation;
(C) A staffed, fully permitted in-vessel digestion facility or staffed in-vessel digestion
operation;
(D) A staffed, fully permitted transfer/processing facility or staffed transfer/processing
operation;
(E) A staffed, fully permitted chip and grind operation or facility; or
(F) A recycling center as defined in title 14, California Code of Regulations, section
17402.5(d) that meets the following:
(i) The cannabis waste received shall contain at least ninety (90) percent inorganic
material;
(ii) The inorganic portion of the cannabis waste is recycled into new, reused, or
reconstituted products that meet the quality standards necessary to be used in the
marketplace; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 195 of 229
(iii) The organic portion of the cannabis waste shall be sent to a facility or operation
identified in subsections (b)(3)(A)-(E).
(4) 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.
(c) The licensee shall maintain any cannabis waste in a secured waste receptacle or
secured area on the licensed premises until the time of disposal. Physical access to the
receptacle or area shall be restricted to the licensee, employees of the licensee, the local
agency, waste hauler franchised or contracted by the local agency, or private waste
hauler permitted by the local agency only. Nothing in this subsection prohibits licensees
from using a shared waste receptacle or area with other licensees, provided that the
shared waste receptacle or area is secured and access is limited as required by this
subsection.
(d) A licensee that disposes of waste through an entity described in subsection (b)(2)
shall do all of the following:
(1) Maintain and make available to the Department upon request the business name,
address, contact person, and contact phone number of the entity hauling the waste; and
(2) Obtain documentation from the entity hauling the waste that evidences subscription to
a waste collection service.
(e) If a licensee is self-hauling cannabis waste as allowed by the local jurisdiction, the
licensee shall be subject to all of the following requirements:
(1) Self-hauled cannabis waste shall only be transported by the licensee or its
employees;
(2) Self-hauled cannabis waste shall only be transported to a facility specified in
subsection (b)(3); and
(3) The licensee or its employee who transports the waste shall obtain for each delivery
of cannabis waste a copy of a certified weight ticket or receipt from the solid waste
facility.
(f) A batch of cannabis or cannabis products that is being disposed of because the batch
has failed internal quality testing, quality assurance review by a distributor, or regulatory
compliance testing shall comply with the following additional requirements:
(1) All cannabis or cannabis products in the batch shall be rendered unusable prior to
disposal;
(2) Rendering of the cannabis or cannabis products shall be done under video
surveillance, unless the rendering is performed by a licensee engaging in cultivation
activities on a licensed premises authorized exclusively for cultivation activities or the
cultivation area of a licensed microbusiness premises; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 196 of 229
(3) The reason for disposal and the disposition of the batch shall be noted in the track
and trace system.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
§17225. Product Complaints.
(a) A licensee shall review all product complaints made to the licensee to determine
whether the complaints involve possible misbranding or adulteration of a cannabis good,
and shall investigate the complaints to the extent practicable based on the information
received and the records the licensee is required to maintain.
(b) For purposes of this section, “product complaint” means any written, electronic, or
oral communication received by a licensee that contains any allegation expressing
concern, for any reason, with the quality of a cannabis good. Examples of product
complaints may include, but are not limited to: foul odor, caused illness or injury, foreign
material in a cannabis product container, improper packaging, mislabeling, cannabis
products that contain an incorrect concentration of cannabinoids, and cannabis products
that contain an unidentified ingredient, or any form of contaminant.
(c) The licensee shall maintain written records for every product complaint received and
any subsequent investigation. The records shall include:
(1) The name and description of the cannabis good;
(2) The batch number or UID of the cannabis good, if available;
(3) The date the complaint was received and the name, address, and telephone number
of the complainant, if available;
(4) The nature of the complaint including, if known, how the product was used;
(5) The reply to the complainant, if any;
(6) The findings of the investigation or follow-up action taken when an investigation is
performed;
(7) The basis for any determination not to conduct an investigation, if applicable; and
(8) The notification to the licensee that made the cannabis good, if applicable.
(d) The licensee shall conduct a recall, as specified in section 17226, when the
investigation evidences adulteration or misbranding.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 2613126039.6, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 197 of 229
§17226. Voluntary Recalls.
(a) Licensees shall establish and implement written procedures for recalling cannabis
goods that are determined to be misbranded or adulterated. The recall procedures shall
be implemented upon discovery, or notification from the Department, that one or more
batches of cannabis goods are adulterated or misbranded. These procedures shall
include:
(1) Factors that necessitate a recall;
(2) Personnel responsible for implementing the recall procedures;
(3) Notification protocols, including:
(A) A mechanism to notify all customers that have, or could have, obtained the cannabis
goods, including communication and outreach via media, as necessary and appropriate;
(B) A mechanism to notify any licensees that supplied or received the recalled cannabis
goods; and
(C) Instructions to the general public and other licensees for the return or destruction of
the recalled cannabis goods; and
(4) Procedures for the collection and destruction of any recalled cannabis goods. These
procedures shall meet the following requirements:
(A) All recalled cannabis goods that are intended to be destroyed shall be quarantined for
a minimum of 72 hours, unless a longer holding time is requested by the Department.
The licensee shall affix to the recalled cannabis goods any bills of lading, shipping
manifests, or other similar documents with the cannabis goods information and weight.
The cannabis goods held in quarantine shall be subject to auditing by the Department.
(B) Following the quarantine period, the licensee shall render the recalled cannabis
goods unusable and dispose of them in accordance with section 17223.
(b) In addition to the tracking requirements set forth in section 15049, a licensee shall
use the track and trace system and onsite documentation to ensure that recalled
cannabis goods intended for destruction are identified, weighed, and tracked while on the
licensed premises and when disposed of in accordance with this section. For recalled
cannabis goods, the licensee shall enter the following details into the track and trace
system: the weight and count of the cannabis goods, reason for destruction, and date the
quarantine period will begin.
(c) The licensee shall notify the Department of any recall within 24 hours of initiating the
recall.
(d) A licensed manufacturer may submit a corrective action plan to the Department for
recalled cannabis goods in accordance with section 17305. If the corrective action plan is
not approved by the Department, the cannabis goods shall be destroyed pursuant to the
procedures required by subsection (a)(4).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26039.1 and 26039.6, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 198 of 229
§17227. Mandatory Recalls.
(a) The Department may require licensees to conduct a recall of a cannabis good that is
adulterated or misbranded in accordance with Business and Professions Code section
26039.1.
(b) The licensee shall conduct the mandatory recall in the same manner as a voluntary
recall as provided in section 17226.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26039.1 and 26039.6, Business and Professions Code.
Chapter 10. Cannabis and Cannabis Products
Article 1. Standards for Manufactured Cannabis Products
§17300. Prohibited Products.
The following types of products shall not be sold as cannabis products:
(a) Alcoholic beverages, as defined in Business and Professions Code section 23004.
This prohibition does not apply to tinctures that meet the requirements of section 17303.
(b) Any cannabis product containing any non-cannabinoid additive that would increase
potency, toxicity, or addictive potential, or that would create an unsafe combination with
other psychoactive substances including, but not limited to, nicotine.
(c) Any cannabis product that must be held at or below 41 degrees Fahrenheit to keep it
safe for human consumption, including, but not limited to, cream- or custard-filled pies;
pies or pastries consisting in whole or in part of milk or milk products, or eggs; and meat-
filled pies or pastries. This prohibition shall not apply to juices or beverages that need to
be held below 41 degrees Fahrenheit if the juice or beverage was processed in
accordance with section 17219, or to infused butter manufactured as permitted by
subsection (g).
(d) Any thermally-processed low-acid cannabis product packed in a hermetically sealed
container that, if it did not contain cannabis, would be subject to the manufacturing
requirements of title 21, Code of Federal Regulations, part 113.
(e) Any acidified cannabis product that, if it did not contain cannabis, would be subject to
the manufacturing requirements of title 21, Code of Federal Regulations, part 114.
(f) Any juice that is not shelf-stable or that is not processed in accordance with section
17219.
(g) Dairy products of any kind, as prohibited by Business and Professions Code section
26001(u), except butter purchased from a licensed milk products plant or retail location
that is subsequently infused or mixed with cannabis.
(h) Meat products other than dried meat products prepared in accordance with section
17220.
(i) Seafood products of any kind.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 199 of 229
(j) Any product that is manufactured by application of cannabinoid concentrate or extract
to commercially available candy or snack food items without further processing of the
product. Commercially available candy or snack food items may be used as ingredients
in a cannabis product, provided that they are used in a way that renders them
unrecognizable as the commercially available items, and the label, including the
ingredient list, does not reference the commercially available item.
(k) Any cannabis product that the Department determines, on a case-by-case basis, is
attractive to children, as specified in section 17408.
(l) Any cannabis product that the Department determines, on a case-by-case basis, is
easily confused with commercially available foods that do not contain cannabis.
(m) Any cannabis product in, or imprinted with the shape, either realistic or caricature, of
a human being, animal, insect, or fruit.
(n) Any inhalable cannabis product that is delivered into the lungs through a metered-
dose inhaler or dry-powder inhaler. Nothing in this section shall be interpreted to prohibit
other dry-powder cannabis products or metered-dose vaporizers containing cannabis or
cannabis oil.
(o) Any cannabis product that is administered to the eye or the nasal passages.
(p) Any cannabis product that is injected into the body by piercing the skin.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
§17301. Additional Requirements for Edible Cannabis Products.
(a) Except for cannabis, cannabis products, or terpenes, no ingredient or component
shall be used in the manufacture of an edible cannabis product unless that ingredient or
component is permitted by the United States Food and Drug Administration for use in
food or food manufacturing, as specified in Substances Added to Food in the United
States, available at
https://www.accessdata.fda.gov/scripts/fdcc/index.cfm?set=FoodSubstances or is
Generally Recognized as Safe (GRAS) under sections 201(s) and 409 of the Federal
Food, Drug, and Cosmetic Act (codified in 21 U.S.C. 321(s) and 21 U.S.C. 348).
(b) Edible cannabis products that consist of more than a single serving shall be marked
or packaged in a manner such that a single serving is readily identifiable or measurable.
(c) An edible cannabis product consisting of multiple servings shall be homogenized so
that each serving contains the same concentration of THC.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 200 of 229
§17302. Additional Requirements for Topical Cannabis Products.
(a) Except for cannabis, cannabis concentrate, or terpenes, topical cannabis products
shall only contain ingredients permitted for cosmetic manufacturing in accordance with
title 21, Code of Federal Regulations, part 700, subpart B (section 700.11 et seq.) (Rev.
March 2016), which is hereby incorporated by reference.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
§17302.1. Additional Requirements for Tinctures.
(a) A tincture shall be no more than 2 fluid ounces and shall include a calibrated dropper
or similar device for measuring a single serving.
(b) A tincture, defined at section 15000(rrr), may include ingredients other than cannabis
extract and alcohol, vegetable oil, or glycerin provided that the primary ingredient by
weight is alcohol, vegetable oil, or glycerin.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
§17303. Orally Consumed Products Containing Alcohol.
(a) Any orally consumed product that contains more than 0.5% alcohol by volume as an
ingredient, and is not otherwise an alcoholic beverage as defined in Business and
Professions Code section 23004, shall be packaged in a container no larger than two (2)
fluid ounces and shall include a calibrated dropper or other similar device capable of
accurately measuring servings.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
§17303.1. Additional Requirements for Inhaled Products.
(a) Cannabis products intended for inhalation shall only contain cannabis, cannabis
concentrate, terpenes, rolling paper, leaf, pre-roll filter tips, or ingredients permitted by
the United States Food and Drug Administration as an “inactive ingredient” for inhalation,
as specified in the United States Food and Drug Administration Inactive Ingredients
Database, available at https://www.fda.gov/drugs/drug-approvals-and-
databases/inactive-ingredients-database-download.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26011.5, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 201 of 229
Article 2. Cannabinoid Concentration Limits
§17304. THC Concentration Limits.
(a) An edible cannabis product shall not contain more than:
(1) 10 milligrams THC per serving; and
(2) 100 milligrams THC per package.
(b) Notwithstanding subsection (a), a package containing an edible product that is an
orally dissolving product, such as sublingual lozenges or mouth strips, may contain up to
500 milligrams THC per package, if:
(1) The cannabis product consists of discrete servings of no more than 10 milligrams
THC per piece;
(2) The cannabis product is labeled “FOR MEDICAL USE ONLY;” and
(3) The cannabis product is only available for sale to a medicinal-use patient.
(c) A topical cannabis product or a cannabis concentrate shall not contain more than
1,000 milligrams THC per package.
(d) Notwithstanding subsection (c), a topical cannabis product or a cannabis concentrate
may contain more than 1,000 milligrams THC per package, but not more than 2,000
milligrams THC per package, if the product is labeled “FOR MEDICAL USE ONLY” and
is only available for sale to a medicinal-use patient.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26120 and 26130, Business and Professions Code.
Article 3. Failed Product Batches
§17305. Failed Product Batches.
(a) A finished cannabis product batch that fails any regulatory compliance laboratory
testing requirement established in this division shall be destroyed unless:
(1) The cannabis product batch or harvest batch may be remediated by relabeling
pursuant to subsection (d); or
(2) A corrective action plan for remediation is approved by the Department pursuant to
subsection (e). The licensed manufacturer or microbusiness authorized to engage in
manufacturing who submits a corrective action plan for remediation shall be the
manufacturer that remediates the subject batch. The licensed manufacturer shall not
receive the batch from the licensed distributor until the Department has approved the
corrective action plan.
(b) Remediation of a failed product batch or the use of a harvest batch that has failed any
regulatory compliance laboratory test shall comply with the requirements and procedures
established by the Department in section 15306, in addition to the requirements of this
article.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 202 of 229
(c) Except as provided in subsections (d) and (f), edible cannabis products that fail
regulatory compliance laboratory testing shall not be remediated and shall be destroyed.
If any edible cannabis product that has failed regulatory compliance laboratory testing is
remediated or otherwise mixed with another batch of cannabis product in violation of this
section, such action shall render the final cannabis product adulterated, regardless of the
defect level of the final cannabis product.
(d) A cannabis product batch that fails regulatory compliance laboratory testing for
cannabinoid or terpenoid content may be remediated by relabeling the product with the
correct information from the certificate of analysis for regulatory compliance, provided
that the THC limits in section 17304 are met.
(e) Except as provided in subsection (d), a cannabis product batch or a harvest batch
that fails regulatory compliance laboratory testing or quality assurance review shall not
be remediated unless the Department has approved a corrective action plan submitted
by the licensed manufacturer or microbusiness authorized to engage in manufacturing
who will be performing the remediation. Edible cannabis products may only be
remediated by relabeling pursuant to subsection (d) or repackaging as provided in
subsection (f). Corrective action plans will be reviewed by the Department on a case-by-
case basis. A corrective action plan shall be submitted to the Department at
remediation@cannabis.ca.gov and contain the following:
(1) The licensed manufacturer’s license number and legal business name;
(2) The licensed manufacturer’s DBA, if any;
(3) The brand name of the product being remediated, the UID for the batch, and the size
of the batch;
(4) The licensed manufacturer’s premises address;
(5) The name, email address, and phone number of the licensed manufacturer’s contact
person for this remediation;
(6) A description of how the cannabis product or harvest batch will be remediated so that
the cannabis product or harvest batch, or any product produced therefrom, will meet all
regulatory compliance testing standards and quality assurance requirements; and
(7) Any additional information requested by the Department.
(f) Edible cannabis products that fail regulatory compliance testing because the per-
package limit of THC has been exceeded may be remediated by repackaging under the
following conditions:
(1) The Department has approved a corrective action plan for repackaging the product;
(2) The product batch is returned to the manufacturer who packaged the product;
(3) The product itself is not altered in any way; and
(4) The product is labeled to accurately state the contents.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 203 of 229
(g) All remediation of harvest or product batches shall be documented in the batch
production records. Remediated products, harvest batches, or products produced
therefrom shall be transported to a licensed distributor and undergo regulatory
compliance testing in accordance with chapters 2 and 6 and quality assurance review
pursuant to sections 15307 and 15307.1 prior to being transported to a licensed retailer.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26039.6, Business and Professions Code.
Chapter 11. Labeling and Packaging Requirements
Article 1. Bulk Cannabis or Cannabis Products, Immature Plants, and Seeds
§17398. Bulk Cannabis or Cannabis Products.
(a) For purposes of this section, “bulk cannabis or cannabis products” means cannabis or
cannabis products transferred between licensees for the purpose of further processing
and/or packaging.
(b) The packaging used to transport bulk cannabis or cannabis products shall protect the
cannabis or cannabis products from contamination and shall not expose the cannabis or
cannabis products to any toxic or harmful substance.
(c) Packages of bulk cannabis or cannabis products shall be labeled with the following:
(1) The type or common name of the cannabis or cannabis products contained therein;
(2) The UID assigned to the cannabis or cannabis products;
(3) The ingredients of the cannabis products, including a list of any allergens present as
described in section 17406(a)(6); and
(4) The net weight or count of the cannabis or cannabis products.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17399. Immature Plants.
(a) Immature plants to be sold at retail are not required to be placed in child-resistant or
tamper-evident packaging prior to sale.
(b) Immature plants shall be labeled with the following:
(1) The legal business name, or any name listed on the license certificate, of the licensed
nursery that cultivated the immature plant, and its contact number or website address;
(2) The strain name; and
(3) The statement: “This plant has not been tested in accordance with the Medicinal and
Adult-Use Cannabis Regulation and Safety Act.”
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26070, 26100 and 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 204 of 229
§17400. Seeds.
(a) Packages of seeds are not required to be placed in child-resistant packaging prior to
sale.
(b) Packages of seeds to be sold at retail shall be labeled with the following:
(1) The legal business name, or any name listed on the license certificate, of the licensed
nursery that cultivated the seeds, and its contact number or website address;
(2) The strain name(s);
(3) Either the weight or count of seeds in the package;
(4) The universal symbol described in section 17410; and
(5) The statement: “These seeds have not been tested in accordance with the Medicinal
and Adult-Use Cannabis Regulation and Safety Act.”
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26130, Business and Professions Code.
Article 2. Cannabis Products Released from Manufacturing
§17401. Release to Distributor as Finished Product.
(a) Cannabis products shall not be transferred to a licensed distributor, or microbusiness
authorized to engage in distribution, for regulatory compliance testing unless the
cannabis products are in their final form and packaged and labeled for retail sale.
(b) Notwithstanding subsection (a), a product label may exclude labeling of cannabinoid
content if the cannabinoid content is to be added to the label at the distribution premises
after issuance of a Certificate of Analysis in accordance with section 17407.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5 and 26130, Business and Professions Code.
Article 3. Labeling Requirements
§ 17402. General Provisions.
(a) Any information required to be listed on a label shall be written in English.
(b) A label shall be unobstructed and conspicuous so that it can be read by the
consumer.
(c) All required label information shall be located on the outside container or wrapper of
the finished product to be sold at a retailer, or be easily legible through the outermost
container or wrapper. If the immediate container holding the cannabis goods is separable
from the outermost packaging, such as a container placed inside of a box, the immediate
container shall be labeled with the universal symbol as described in section 17410.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 205 of 229
§ 17403. Primary Panel Labeling Requirements: Nonmanufactured Cannabis
Goods.
(a) The label for a package of nonmanufactured cannabis goods shall include a primary
panel that includes the following information in a type size no smaller than 6 point and
proportional to the size of the primary panel and container:
(1) The identity of the product;
(2) The net weight of cannabis in the package, listed in both metric and U.S. customary
units; and
(3) The universal symbol described in section 17410.
(b) The label for a package of nonmanufactured cannabis goods shall include an
informational label that includes the following information in a type size no smaller than 6
point and proportional to the size of the informational panel and container:
(1) The UID;
(2) The name of the licensed cultivator or licensee packaging the product (either the legal
business name or the listed on the license certificate) and that licensee's contact number
or website address;
(3) The date of packaging for retail sale; and
(4) The following statement in bold print: “GOVERNMENT WARNING: THIS PACKAGE
CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF
REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR
CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON
IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR
BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS
YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME
CAUTION.”
(c) Nothing in this section prohibits the inclusion of additional information on the primary
panel, provided that the label does not violate the requirements of section 17408.
(d) The cannabinoid content for a package of nonmanufactured cannabis goods shall be
labeled as specified in section 17407.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17404. Primary Panel Labeling Requirements: Manufactured Cannabis Products.
(a) The label for a manufactured cannabis product shall include a primary panel that
includes the following information in a type size no smaller than 6 point and proportional
to the size of the primary panel and container:
(1) The identity of the product in a text size reasonably proportional to the most
prominent printed matter on the panel;
(2) The universal symbol as described in section 17410; and
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 206 of 229
(3) The net weight or volume of the contents of the package, listed in both metric and
U.S. customary units.
(b) Nothing in this section prohibits the inclusion of additional information on the primary
panel, provided that the label does not violate the requirements of section 17408.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17405. Additional Primary Panel Labeling Requirements: Edible Products.
(a) In addition to the requirements of section 17404, the primary panel of an edible
cannabis product shall include the words “cannabis-infused” or “cannabis infused”
immediately above the identity of the product in bold type and a text size larger than the
text size used for the identity of the product.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17406. Informational Panel Labeling Requirements.
(a) The label for a manufactured cannabis product shall include an informational panel
that includes the following:
(1) The name of the licensed manufacturer (either the legal business name or the name
listed on the license certificate) that manufactured the cannabis product and the
manufacturer’s contact number or website address;
(2) The date the cannabis product was packaged for retail sale;
(3) The following statement in bold print: “GOVERNMENT WARNING: THIS PRODUCT
CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF
REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE
POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER
UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS
OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS
USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION
OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE
MACHINERY. PLEASE USE EXTREME CAUTION;”
(4) The statement: “FOR MEDICAL USE ONLY” if the package contains an amount of
THC that exceeds the level allowed for adult-use cannabis goods, as specified in section
17304;
(5) A list of all product ingredients in descending order of predominance by weight or
volume. If any product ingredient contains subingredients, the list shall either:
(A) Include the common name of the ingredient followed by a parenthetical listing of all
ingredients in descending order by weight or volume; or
(B) List all subingredients as individual ingredients in descending order of predominance;
however,
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 207 of 229
(C) This subsection shall not apply to flavoring, which shall instead comply with title 21,
Code of Federal Regulations, Part 101.22 (Rev. Jan. 2009), hereby incorporated by
reference;
(6) For cannabis products containing an ingredient, flavoring, coloring, or an incidental
additive that bears or contains a major food allergen, the word “contains,” followed by a
list of the applicable major food allergens. The list shall conform with the requirements for
food allergen labeling set forth in 21 U.S.C. §343(w), paragraph (1)(A) or (1)(B);
(7) The names of any artificial colorings contained in the product;
(8) For edible cannabis products, the amount, in grams or milligrams, of sodium, sugar,
carbohydrates, and total fat per serving;
(9) Instructions for use, such as the method of consumption or application, and any
preparation necessary prior to use;
(10) The UID;
(11) The batch or lot number; and
(12) The statement: “KEEP REFRIGERATED” or “REFRIGERATE AFTER OPENING,”
as applicable, if the cannabis product is perishable or perishable after opening.
(b) The informational panel text shall be in a type size no smaller than 6 point and
proportional to the size of the primary panel and container.
(c) Except for the information required by subsections (a)(1), (a)(10) and (a)(11), the
requirements of subsection (a) may be fulfilled through the use of supplemental labeling,
which may include, but is not limited to, a package insert, fold-out or booklet label, or a
hanging tag.
(d) Cannabinoid content may be included on the informational panel. Cannabinoid
content for manufactured cannabis products shall be labeled as specified in section
17407.
(e) Nothing in this section prohibits the inclusion of additional information on the
informational panel provided that the label does not violate the requirements of section
17408.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
§17407. Cannabinoid Content Labeling.
(a) Each package for retail sale of cannabis goods shall be labeled with the cannabinoid
content on either the primary panel or an informational panel. For manufactured
products, cannabinoid content may be included on the label prior to release to a
distributor or it may be added to the label at the distribution premises after issuance of a
regulatory compliance testing Certificate of Analysis for the batch as described in
subsection (d).
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 208 of 229
(b) Cannabinoid content labeling shall include the following:
(1) For an edible product or a cannabis concentrate for which the manufacturer has
established serving designations, THC and CBD content expressed in milligrams per
serving and milligrams per package.
(2) For a topical cannabis product or a cannabis concentrate without serving
designations, THC and CBD content expressed in milligrams per package.
(3) For nonmanufactured cannabis goods, Total THC content expressed as a
percentage.
(4) Packages of infused pre-rolls shall be labeled with either:
(A) The cannabinoid content in milligrams; or
(B) The cannabinoid content of the dried flower expressed as a percentage and the
added cannabinoid content in milligrams.
(c) Cannabis goods labeled prior to testing must include the items specified in subsection
(b), as appropriate to the product. For THC or CBD concentration that is less than two (2)
milligrams per serving or per package, the THC or CBD concentration may be stated as
“<2 mg per serving” or “<2 mg per package.”
(d) Cannabis goods labeled at the distribution premises after issuance of the Certificate
of Analysis shall comply with the following:
(1) Each package of cannabis goods shall be labeled with the cannabinoid content as
specified in subsection (b) that is indicated on the Certificate of Analysis, as well as any
other cannabinoid that is five (5) percent or greater of the total cannabinoid content;
(2) Labeled cannabinoid content shall reflect the amount indicated on the Certificate of
Analysis. The amount may be rounded to the nearest whole number, except that
packages shall not be labeled with an amount greater than the allowable THC limits. If
the THC or CBD content of a manufactured cannabis product is indicated on the
Certificate of Analysis as “Not Detected” or “<LOQ,” the cannabinoid content shall be
labeled as “0 mg” or “<2 mg;”
(3) The cannabinoid content label shall be affixed to the outermost packaging of the
cannabis goods and shall not obscure any other label information.
(e) Nothing in this section precludes the labeling of terpenes or additional cannabinoid
content on the cannabis goods, provided that the information is verified by the Certificate
of Analysis.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Section 26120, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 209 of 229
§17408. Labeling Restrictions.
(a) Cannabis goods labeling shall not contain any of the following:
(1) The name of a California city, county, or city and county, including any similar name
that is likely to mislead consumers as to the origin of the cannabis contained therein,
unless one hundred percent of the cannabis contained therein was produced in that city,
county, or city and county. For purposes of this subsection, a cannabis plant is
considered to have been produced within a city, county, or city and county if it was
cultivated within that boundary starting from the time the plant was no taller or wider than
18 inches.
(2) Content that is, or is designed to be, attractive to individuals under the age of 21, as
specified in section 15040(a)(2) and (3).
(3) Any health-related statement that is untrue or misleading. Any health-related
statement must be supported by the totality of publicly available scientific evidence
(including evidence from well-designed studies conducted in a manner which is
consistent with generally recognized scientific procedures and principles), and for which
there is significant scientific agreement among experts qualified by scientific training and
experience to evaluate such claims.
(4) If the product is an edible cannabis product, a picture of the product contained
therein.
(5) Any information that is false or misleading. For purposes of this section, false and
misleading information includes, but is not limited to:
(A) Any statement or indication that the cannabis or cannabis product is organic, unless
the National Organic Program (section 6517 of the federal Organic Foods Production Act
of 1990 (7 U.S.C. section 6501 et seq.)) authorizes organic designation and certification
for cannabis and the cannabis or cannabis product meets the requirements for that
designation and certification. This includes use of the word “organic” or variants in
spelling such as “organix” on the labeling, except for use of the term “organic” in the
ingredient statement on the informational panel of a cannabis product in compliance with
the requirements of the programs established pursuant to Business and Professions
Code section 26062.
(B) Any statement or indication that the cannabis or cannabis product is “OCal,” “OCal
certified,” or made with “OCal cannabis,” if the cannabis or cannabis product has not
been cultivated, handled, processed, or manufactured in compliance with the
requirements of the programs established pursuant to Business and Professions Code
section 26062.
(6) Any statement or indication of an appellation of origin if the cannabis or cannabis
product does not meet the requirements of the program established pursuant to Business
and Professions Code section 26063.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26062.5, 26063, 26120, 26121 and 26154, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 210 of 229
§17409. Statement of Characteristic Anticipated Effects.
(a) A cannabis good may include information on the characteristic anticipated effects of
the cannabis good if the licensee has substantiation that the information is truthful and
not misleading. Such information may be located on the informational panel of the label
or the supplemental labeling with the package. For purposes of this section,
“characteristic anticipated effect” includes any physiological effect (a temporary effect on
the body related to the consumption of cannabis goods) that is common to or expected
from the particular cannabis strain, but excludes any claim of health benefits (i.e., claims
of therapeutic action as a result of the consumption of cannabis goods).
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120 and 26130, Business and Professions Code.
§17410. Universal Symbol.
(a) The symbol established pursuant to Business and Professions Code section 26130
shall replicate the following in form:
(b) The symbol shall be black or white in color. The symbol shall be made conspicuous
by printing the symbol on a contrasting color.
(c) The symbol shall be no smaller in height than one-half (0.5) inch except as allowed
under subsection (d).
(d) A cannabis vape cartridge or integrated cannabis vaporizer shall bear a universal
symbol in a size no smaller than one-quarter (0.25) inch wide by one-quarter (0.25) inch
high that is engraved, printed, or affixed with a sticker.
(e) The symbol shall not be altered or cropped in any way other than to adjust the sizing
for placement on the primary panel.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120, 26121 and 26130, Business and Professions Code.
Article 4. Packaging
§17411. Packaging.
(a) A package used to contain a cannabis good shall comply with the following
requirements:
(1) The package shall protect the cannabis good from contamination and shall not
expose the good to any toxic or harmful substance.
(2) The package shall be tamper-evident, which means that the packaging is sealed so
that the contents cannot be accessed without obvious destruction of the seal upon initial
opening.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 211 of 229
(3) If the cannabis good has more than one serving, the package shall be resealable.
(4) The package shall not imitate any package used for products typically marketed to
children.
(5) If the cannabis good is an edible product, the package shall be opaque.
(6) Notwithstanding subsection (a)(5), cannabis beverages may be packaged in glass
containers that are clear or any color.
(7) The package shall be child-resistant, as described in section 17412.
Authority: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26120 and 26121, Business and Professions Code.
§17412. Child-Resistant Packaging Requirements.
(a) A package containing cannabis or cannabis products transferred to a distributor for
retail sale shall be child-resistant, as follows:
(1) The package for an edible product, an orally consumed concentrate, or a suppository
shall be child-resistant for the life of the product. A package that contains more than a
single serving is not required to be child-resistant if each individual serving is packaged
in child-resistant packaging.
(2) Cannabis or a cannabis product intended to be inhaled or a cannabis product that is
applied topically may utilize packaging that is child-resistant only until first opened, if the
package is labeled with the statement: “This package is not child-resistant after opening.”
(b) The following packages are considered child-resistant for purposes of this article:
(1) Any package that has been certified as child-resistant under the requirements of the
Poison Prevention Packaging Act of 1970 Regulations (16 C.F.R. § 1700.15(b)(1)) (Rev.
July 1995), which is hereby incorporated by reference.
(2) A bottle sealed with a pry-off, metal crown, cork-style bottle cap, provided that the
bottle contains only a single serving.
(3) Plastic packaging that is at least four (4) mils thick and heat-sealed without an easy-
open tab, dimple, corner, or flap, provided that the package contains a cannabis product
described in subsection (a)(2) or a cannabis product that is only a single serving.
Authority cited: Sections 26013 and 26130, Business and Professions Code. Reference:
Sections 26011.5, 26120 and 26121, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 212 of 229
Chapter 12. Enforcement
Article 1. Authority
§17800. Right of Access.
(a) The Department and its authorized representatives, for purposes of inspection,
investigation, review, or audit, shall have full and immediate access to:
(1) Enter any premises licensed by the Department.
(2) Inspect and test any vehicle or equipment possessed by, in control of, or used by a
licensee or their agents and employees for the purpose of conducting commercial
cannabis activity.
(3) Test any cannabis goods or cannabis-related materials or products possessed by, in
control of, or used by a licensee or their agents and employees for the purpose of
conducting commercial cannabis activity.
(4) Copy any materials, books, or records of any licensee or their agents and employees.
(b) Failure to cooperate with and participate in any Department investigation pending
against the licensee may result in a licensing violation subject to discipline. This
subsection shall not be construed to deprive a licensee of any privilege guaranteed by
the Fifth Amendment to the Constitution of the United States, or any other constitutional
or statutory privileges. This subsection shall not be construed to require a licensee to
cooperate with a request that would require the licensee to waive any constitutional or
statutory privilege or to comply with a request for information or other matters within an
unreasonable period of time in light of the time constraints of the licensee’s business.
Any constitutional or statutory privilege exercised by the licensee shall not be used
against the licensee in a regulatory or disciplinary proceeding against the licensee.
(c) Prior notice of an inspection, investigation, review, or audit is not required.
(d) Any inspection, investigation, review, or audit of a licensed premises shall be
conducted anytime the licensee is exercising privileges under the license, or as
otherwise agreed to by the Department and the licensee or its agents, employees, or
representatives.
(e) If the licensed premises is not accessible because access is only available by going
through another licensed premises and the licensee occupying the other licensed
premises denies the Department access, the licensees shall both be held responsible
and subject to discipline.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26013,
26015 and 26160, Business and Professions Code; and Section 11181, Government
Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 213 of 229
Article 2. Compliance and Enforcement Actions
§17801. Notice to Comply.
(a) The Department may issue a Notice to Comply to a licensee for violation(s) of the Act
or this division discovered during an investigation or audit or observed during an
inspection.
(b) The Notice to Comply shall be in writing and describe the nature and facts of each
violation, including a reference to the statute or regulation violated, and may indicate the
manner in which the licensee must correct the violation(s) to achieve compliance.
(c) The Department may serve the Notice to Comply personally, by email, or by mail to
the licensee or an employee, agent, or person delegated by the licensee to accept
notice.
(d) The licensee shall sign and return the Notice to Comply and describe how compliance
was achieved within 30 calendar days after the date of personal service or the date of
emailing or mailing of the notice or a different date specified by the Department. The
Department may also require the licensee to provide a plan for review and approval by
the Department on a case-by-case basis.
(e) Failure to correct the violation(s) in the Notice to Comply may result in disciplinary
action.
Authority: Section 26013, Business and Professions Code; Reference: Sections 26012
and 26018, Business and Professions Code.
§17801.1. Notice of Violation.
(a) Until October 1, 2021, the Department may issue a Notice of Violation to a licensee
for violation(s) of the Act or this division that shall inform the licensee of:
(1) The violation(s) alleged;
(2) The proposed fine amount; and
(3) The licensee's right to request a hearing pursuant to subsection (b).
(b) Within 30 calendar days after issuance by the Department, a licensee may appeal a
Notice of Violation by submitting a written request for an informal hearing by mail to the
Department of Cannabis Control, Legal Affairs Division, 2920 Kilgore Road, Rancho
Cordova, CA 95670, or by email to appeals@cannabis.ca.gov. The request shall include
the following:
(1) The licensee's name, mailing address, and daytime phone number;
(2) The license number issued by the Department;
(3) A copy of the Notice of Violation; and
(4) A clear and concise statement of the basis of the appeal.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 214 of 229
(c) If the licensee fails to submit a timely request for hearing pursuant to subsection (b),
the Notice of Violation is not appealable and the Department may proceed upon the
noticed violation(s) without a hearing.
(d) A hearing requested to appeal a Notice of Violation will be scheduled and conducted
in accordance with chapter 5 (commencing with section 11500) of part 1 of division 3 of
the Government Code.
(e) For all written requests for a hearing submitted by licensees and received by the
Department prior to October 1, 2021, with hearings scheduled to take place on or after
October 1, 2021, the following will occur:
(1) Informal hearing proceedings noticed prior to October 1, 2021, shall be converted to
adjudicative proceedings under chapter 5 (commencing with section 11500) of part 1 of
division 3 of the Government Code.
(2) Any scheduled informal hearings will be vacated, and a new hearing date, location
and time will be noticed by the Department.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26031 and 26031.5, Business and Professions Code.
§17801.5. Embargo of Cannabis or Cannabis Products.
(a) The Department may embargo cannabis or cannabis products to prevent their sale,
disposal, or removal from the location when the Department has probable cause to
believe the cannabis or cannabis products are adulterated or misbranded or the sale
would otherwise be in violation of the Act or this division.
(b) To embargo cannabis or cannabis products, the Department shall:
(1) Provide initial notice to the licensee or product owner that the cannabis or cannabis
products are subject to embargo and the reason for the embargo. Initial notice may be
oral or written and may be provided in person or by telephone, mail, facsimile
transmission, email, or other electronic means;
(2) Affix a tag or marking to the cannabis or cannabis products, or component thereof,
subject to embargo; and
(3) Provide an inventory of the embargoed items to the licensee or product owner.
(c) The Department shall provide a supplemental written notice to the licensee or product
owner of the embargoed items that includes the following:
(1) The factual and legal bases for the embargo;
(2) A description of the cannabis or cannabis products under embargo;
(3) A request for a written plan to address the items under embargo and the issues(s)
that resulted in the embargo;
(4) A summary of the proceedings for condemnation in accordance with chapter 5
(commencing with section 11500) of part 1 of division 3 of title 2 of the Government
Code;
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 215 of 229
(5) Notification that the embargoed items cannot be removed from embargo, sold, or
disposed of without authorization of the Department or a court; and
(6) The penalty for violation of the embargo.
(d) The licensee or product owner may submit a written plan to the Department that
describes how the licensee or product owner will address the items under embargo and
the issue(s) that resulted in the embargo.
(1) If the Department determines that the plan will resolve the issue(s) that resulted in the
embargo, and that all of the provisions of the Act and this division can be complied with,
the Department will approve the plan and supervise the completion of the plan.
(2) If the Department cannot approve the plan, or the Department does not receive a
response from the licensee within seven (7) calendar days after providing the notice
described in subsection (c), the Department may initiate condemnation proceedings in
accordance with Business and Professions Code section 26039.3(f).
(e) A licensee or product owner or their authorized representative may agree in writing to
the voluntary condemnation and destruction of the cannabis and cannabis products
subject to embargo. Destruction and disposal of the cannabis or cannabis products shall
be at the licensee or product owner’s expense and shall be conducted with the approval
of and under the supervision of the Department.
(f) A licensee or product owner shall not remove the tag or marking from cannabis or
cannabis products under embargo. A licensee or product owner shall not undertake
corrective action or destruction of the items under embargo unless the Department has
provided written approval and removed the embargo tag.
(g) A licensee or product owner shall not remove from embargo, sell, or dispose of any
cannabis or cannabis products under embargo without written permission of the
Department or a court. Each item removed, sold, or disposed of without written
permission of the Department or a court constitutes a separate violation of the Act.
(h) A licensed cultivator or a microbusiness authorized to engage in cultivation may
request permission to continue cultivation or harvesting of cannabis under embargo. The
request shall be made to the Department in writing at compliance@cannabis.ca.gov and
shall specify the cultivation or harvesting activities in which the licensee requests to
engage. The Department may, in its sole discretion, authorize and impose conditions on
the continued cultivation or harvesting of the cannabis under embargo.
(i) Cannabis and cannabis products found, cultivated, processed, produced, or
manufactured at an unlicensed location, or derived from an unlicensed source, cannot be
corrected and shall be destroyed.
Authority: Section 26013, Business and Professions Code. Reference: Section 26039.3,
Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 216 of 229
§17802. Citations; Orders of Abatement; Administrative Fines.
(a) The Department may issue citations containing orders of abatement and fines against
a licensee, or an unlicensed person, for any acts or omissions that are in violation of any
provision of the Act or this division, or any another California laws applicable to cannabis
licensees including, but not limited to, state labor law.
(b) The Department may issue a citation under this section to a licensee for a violation of
a term or condition contained in a decision placing that licensee on probation.
(c) Each citation may contain either order(s) of abatement, monetary fine(s), or both, and
shall:
(1) Be in writing and describe with particularity the nature of the violation, including a
reference to the statute or regulation determined to have been violated;
(2) Fix a reasonable time for abatement of the violation if the citation contains an order of
abatement;
(3) Assess an administrative fine of up to $5,000 per violation, per day, by a licensee and
up to $30,000 per violation, per day, by an unlicensed person if the citation contains a
fine;
(4) Be served personally or by certified mail; and
(5) Inform the licensee or person that they may request an informal conference, or
contest the citation, or both, pursuant to section 17803.
(d) Fines issued with a citation must be paid within 30 calendar days after service of the
citation, unless the fine is contested. If a citation is not appealed and the fine is not paid,
the full amount of the assessed fine shall be added to the fee for renewal of the license.
A license shall not be renewed without payment of the renewal fee and fine.
(e) The amount of any fine assessed by the Department under this section shall take into
consideration the factors listed in Business and Professions Code section 26031.5(a)(1)-
(3).
(f) Nothing in this section shall be deemed to prevent the Department from filing an
accusation to suspend or revoke a license where grounds for such suspension or
revocation exist.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26030 and 26031.5, Business and Professions Code.
§17803. Contesting Citations.
(a) A cited licensee or person may, within 30 calendar days after service of the citation,
contest the citation by submitting to the Department a written request for a hearing,
conducted in accordance with chapter 5 (commencing with section 11500) of part 1 of
division 3 of the Government Code. If a hearing is not requested, it is waived and
payment of a fine will not constitute an admission of the violation charged.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 217 of 229
(b) In addition to requesting a hearing provided for in subsection (a), the cited licensee or
person may, within 15 calendar days after service of the citation, submit a written request
for an informal conference with the Department regarding the acts or omissions charged
in the citation.
(c) The Department shall, within 15 calendar days after receipt of the written request,
hold an informal conference with the cited licensee or person and/or their legal counsel
or authorized representative.
(d) At the conclusion of the informal conference, the Department may affirm, modify, or
dismiss the citation, including any fines levied or orders of abatement issued. A written
decision stating the reasons for the decision shall be mailed to the cited licensee or
person and their legal counsel, if any, within 15 calendar days after the date of the
informal conference. This decision shall be deemed to be a final order with regard to the
citation issued, including the levied fine and the order of abatement, if any.
(e) If the citation is dismissed, any request for a hearing shall be deemed withdrawn. If
the citation is affirmed or modified, the cited licensee or person may either withdraw the
request for a hearing or proceed with the administrative hearing process.
(f) If the citation, including any fines levied or orders of abatement issued, is modified, the
citation originally issued shall be considered withdrawn and new citation issued. If a
hearing is requested for the subsequent citation, it shall be requested within 30 calendar
days after issuance of the citation.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26016 and 26031.5, Business and Professions Code.
§17804. Citation Compliance.
(a) If a citation with an order of abatement is issued, the time to abate or correct a
violation as provided for in the order of abatement may be extended for good cause. If a
cited licensee or person who has been issued an order of abatement is unable to
complete the correction within the time set forth in the citation because of conditions
beyond their control after the exercise of reasonable diligence, the cited licensee or
person may request an extension of time from the Department in which to complete the
correction. The request must be in writing and made within the time set forth for
abatement.
(b) When a citation is not contested, or if it is contested and the cited licensee or person
does not prevail, failure to abate the violation within the time allowed or pay a fine that
was imposed shall constitute a separate violation.
(c) Failure to timely comply with an order of abatement or pay a fine that was imposed
may result in further action being taken by the Department, including, but not limited to,
suspension or revocation of a license, or further administrative or civil proceedings.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012 and 26031.5, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 218 of 229
§17805. Minor Decoys.
(a) Peace officers may use a person under 21 years of age to attempt to purchase
cannabis goods, for the purposes of enforcing the Act and to apprehend licensees,
employees, or agents of licensees who sell cannabis goods to minors. For purposes of
this section, a “minor” is a person under 21 years of age.
(b) The following minimum standards shall apply to the use of a minor decoy:
(1) At the time of the operation, the decoy shall be less than 20 years of age.
(2) A decoy shall either carry identification showing the decoy's correct date of birth or
carry no identification. A decoy who carries identification shall present it upon request to
any seller of cannabis goods.
(3) A decoy shall truthfully answer any questions about their age.
(4) Following any completed sale, but not later than the time a citation, if any, is issued,
the peace officer directing the decoy shall make a reasonable attempt to enter the
licensed premises or respond to the location where the licensee is located and have the
minor decoy who purchased cannabis goods identify the alleged seller of the cannabis
goods.
Authority cited: Sections 26013 and 26140, Business and Professions Code. Reference:
Section 26140, Business and Professions Code.
§17806. Attire and Conduct.
(a) No licensee shall allow the following:
(b) Employment or use of any person in the sale or service of cannabis goods in or upon
the licensed premises while such person is unclothed or in such attire, costume, or
clothing as to expose to view any portion of the breast below the top of the areola or of
any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals.
(c) Employment or use of the services of any host or other person to mingle with the
patrons while such host or other person is unclothed or in such attire, costume, or
clothing as described in subsection (a).
(d) Encouraging or permitting any person on the licensed premises to touch, caress, or
fondle the breasts, buttocks, anus, or genitals of any other person.
(e) Permitting any employee or person to wear or use any device or covering, exposed to
view, which simulates the breast, genitals, anus, pubic hair, or any portion thereof.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26011.5, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 219 of 229
§17807. Entertainers and Conduct.
(a) Live entertainment is permitted on a licensed premises, except that no licensee shall
permit any person to perform acts of or acts that simulate:
(1) Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or
any sexual acts that are prohibited by law.
(2) Touching, caressing, or fondling of the breast, buttocks, anus, or genitals.
(3) Displaying of the buttocks, breasts, pubic hair, anus, vulva, or genitals.
(b) No licensee shall permit any person to use artificial devices or inanimate objects to
depict any of the prohibited activities described in this section.
(c) No licensee shall permit any person to remain in or upon the licensed premises who
exposes to public view any portion of their breast, buttocks, genitals, or anus.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26011.5, Business and Professions Code.
Article 3. Disciplinary Actions
§17808. Additional Grounds for Discipline.
The following include, but are not limited to, additional grounds that constitute a basis for
disciplinary action:
(a) Failure to pay a fine imposed by the Department or agreed to by the licensee.
(b) Failure to take reasonable steps to correct objectionable conditions on the licensed
premises, including the immediately adjacent area that is owned, leased, or rented by the
licensee, that constitute a nuisance, within a reasonable time after receipt of notice to
make those corrections, under Penal Code section 373a.
(c) Failure to take reasonable steps to correct objectionable conditions that occur during
operating hours on any public sidewalk abutting a licensed premises and constitute a
nuisance, within a reasonable time after receipt of notice to correct those conditions from
the Department. This subsection shall apply to a licensee only upon written notice to the
licensee from the Department. The Department shall issue this written notice upon its
own determination, or upon a request from the local law enforcement agency in whose
jurisdiction the licensed premises is located, that is supported by substantial evidence
that persistent objectionable conditions are occurring on the public sidewalk abutting the
licensed premises. For purposes of this subsection:
(1) “Any public sidewalk abutting a licensed premises” means the publicly owned,
pedestrian-traveled way, not more than 20 feet from the licensed premises, that is
located between a licensed premises, including any immediately adjacent area that is
owned, leased, or rented by the licensee, and a public street.
(2) “Objectionable conditions that constitute a nuisance” means disturbance of the peace,
public intoxication, drinking alcoholic beverages in public, smoking or ingesting cannabis
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 220 of 229
or cannabis products in public, harassment of passersby, gambling, prostitution, loitering,
public urination, lewd conduct, drug trafficking, or excessive loud noise.
(3) “Reasonable steps” means all of the following:
(A) Calling the local law enforcement agency. Timely calls to the local law enforcement
agency that are placed by the licensee or their agents or employees shall not be
construed by the Department as evidence of objectionable conditions that constitute a
nuisance.
(B) Requesting that those persons engaging in activities causing objectionable conditions
to cease those activities, unless the licensee or their agents or employees feel that their
personal safety would be threatened in making that request.
(C) Making good faith efforts to remove items that facilitate loitering, such as furniture,
except those structures approved or permitted by the local jurisdiction. The licensee shall
not be liable for the removal of those items that facilitate loitering.
(4) When determining what constitutes “reasonable steps,” the Department shall consider
site configuration constraints related to the unique circumstances of the nature of the
business.
(5) Even after correcting the objectionable conditions that constitute a nuisance, the
licensee has a continuing obligation to meet the requirements of subsections (b) and (c),
and failure to do so shall constitute grounds for disciplinary action.
(d) Knowingly permitting the illegal sale, or negotiations for the illegal sale, of controlled
substances or dangerous drugs upon the licensed premises. Successive sales, or
negotiations for sales, over any continuous period of time shall be deemed evidence of
permission. As used in this section, “controlled substances” has the same meaning as in
Health and Safety Code section 11007, and “dangerous drugs” has the same meaning
as in Business and Professions Code section 4022.
(e) If the licensee has employed or permitted any person to solicit or encourage others,
directly or indirectly, to buy that person's cannabis goods in the licensed premises under
any commission, percentage, salary, or other profit-sharing plan, scheme, or conspiracy.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26011.5, 26012, 26030 and 26031, Business and Professions Code.
§17809. Disciplinary Actions.
(a) When an accusation recommending disciplinary action against a licensee has been
filed pursuant to Business and Professions Code section 26031, the accusation shall be
served on the licensee in accordance with Government Code section 11505.
(b) A hearing shall be conducted in accordance with the provisions of chapter 5
(commencing with section 11500) of part 1 of division 3 of title 2 of the Government Code
to determine if cause exists to take action against the licensee. At the hearing, the
Department shall have all of the powers granted by the statutes cited above and by the
Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 221 of 229
(c) If a hearing on an accusation against a licensee results in a finding that the licensee
has committed any of the acts or omissions constituting grounds for disciplinary action,
the Department may order the license revoked, suspended outright for a specified period
of time, or suspended on probationary restriction for a specified period of time, including
terms and conditions of probation the Department considers appropriate on the basis of
its findings, impose a fine, or any combination thereof. The Department may also issue
other lawful orders it considers appropriate on the basis of its findings.
(d) An accusation may be terminated by written stipulation at any time prior to the
conclusion of the hearing on the accusation. If a licensee submits a proposed stipulation
to the Department for its consideration and the Department subsequently declines to
accept the proposed stipulation, the Department shall not thereafter be disqualified from
hearing evidence on the accusation and taking action thereon as authorized in this
section.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012, 26031 and 26034, Business and Professions Code.
§17810. Interim Suspension.
(a) Pursuant to Business and Professions Code section 494, the Department may
petition for an interim order to suspend any license or impose licensing restrictions upon
any licensee if:
(1) The licensee has engaged in acts or omissions constituting a violation of the
Business and Professions Code or this division, or been convicted of a crime
substantially related to the licensed activity, and
(2) Permitting the licensee to continue to engage in the licensed activity would endanger
the public health, safety, or welfare.
(b) An interim order for suspension or restrictions may be issued with notice, as follows:
(1) The Department shall provide the licensee with at least 15 days’ notice of the hearing
on the petition for an interim order.
(2) The notice shall include all documents submitted in support of the petition.
(c) An interim order for suspension or restrictions may be issued without notice to the
licensee if it appears from the Department’s petition and supporting documents that
serious injury would result to the public before the matter could be heard on notice.
(1) The licensee shall be entitled to a hearing on the petition within 20 days after
issuance of the initial interim order.
(2) Notice of the hearing shall be provided to the licensee by the Department within two
days after issuance of the initial interim order.
(3) The licensee shall receive all documents in support of the petition.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 222 of 229
(d) The Department shall file an accusation, pursuant to chapter 5 (commencing with
section 11500) of part 1 of division 3 of title 2 of the Government Code, within 15
calendar days after issuance of the interim order.
Authority: Section 26013, Business and Professions Code; Reference: Sections 494,
26011.5, 26012 and 26031, Business and Professions Code.
§17813. Enforcement Costs.
(a) In any order in resolution of a disciplinary proceeding for suspension or revocation of
a license, the Department may request the administrative law judge to direct a licensee
found to have committed a violation or violations of the Act or this division to pay a sum
not to exceed the reasonable costs of the investigation and enforcement of the case.
(b) A certified copy of the actual costs, or a good faith estimate of costs where actual
costs are not available, signed by the Department's designated representative shall be
prima facie evidence of reasonable costs of investigation and prosecution of the case.
The costs shall include the amount of investigative and enforcement costs up to the date
of the hearing, including, but not limited to, charges imposed by the Attorney General.
(c) The administrative law judge shall make a proposed finding of the amount of
reasonable costs of investigation and prosecution of the case when requested pursuant
to subsection (a). The Department may reduce or eliminate the cost award, or remand to
the administrative law judge where the proposed decision fails to make a finding on costs
requested pursuant to subsection (a).
(d) Where an order for recovery of costs is made and timely payment is not made as
directed in the decision, the Department may enforce the order for repayment in any
appropriate court. This right of enforcement shall be in addition to any other rights the
Department may have to recover costs.
(e) In any action for recovery of costs, proof of the decision shall be conclusive proof of
the validity of the order of payment and the terms for payment.
(f) Except as provided in subsection (g), the Department shall not renew or reinstate any
license of a licensee who has failed to pay all of the costs ordered under this division.
(g) Notwithstanding subsection (f), the Department may, in its discretion, conditionally
renew or reinstate for a maximum of one year the license of any licensee who
demonstrates financial hardship and enters into a formal agreement with the Department
for reimbursement within that one-year period for the unpaid costs.
(h) Nothing in this section shall preclude the Department from including recovery of the
costs of investigation and enforcement of a case in any stipulated settlement.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
125.3, 26012 and 26031, Business and Professions Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 223 of 229
§17814. Disciplinary Guidelines.
In reaching a decision on a disciplinary action under the Act and the Administrative
Procedure Act (Govt. Code section 11400 et seq.), the Department shall consider the
disciplinary guidelines entitled “Department of Cannabis Control Disciplinary Guidelines
for All Commercial Cannabis Licenses Amended July 2022,” which are hereby
incorporated by reference. Deviation from these guidelines and orders, including the
standard terms of probation, is appropriate where the Department in its sole discretion
determines that the facts of the particular case warrant such a deviation (e.g., the
presence of mitigating factors, the age of the case, or evidentiary problems).
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26012 and 26031, Business and Professions Code.
Article 4. Emergency Decision and Orders
§17815. Emergency Decision and Order.
(a) The Department may issue an emergency decision and order for temporary, interim
relief to prevent or avoid immediate danger to the public health, safety, or welfare. Such
circumstances include, but are not limited to, the following:
(1) The Department has information that cannabis goods at a licensee's premises have a
reasonable probability of causing serious adverse health consequences or death.
(2) To prevent the sale, transfer, or transport of contaminated or illegal cannabis goods in
possession of a licensee.
(3) The Department observes or has information that conditions at a licensee's premises
exist that present an immediate risk to worker or public health and safety.
(4) To prevent illegal diversion of cannabis goods, or other criminal activity at a licensee's
premises.
(5) To prevent the destruction of evidence related to illegal activity or violations of the
Act.
(6) To prevent misrepresentation to the public, such as selling untested cannabis goods,
providing inaccurate information about the cannabis goods or cannabis goods that have
been obtained from an unlicensed person.
(b) Temporary, interim relief may include a suspension or administrative hold by one or
more of the following:
(1) An order temporarily suspending a license.
(2) An order to segregate or isolate specific cannabis goods.
(3) An order prohibiting the movement of cannabis goods to or from the premises.
(4) An order prohibiting the sale of specific cannabis goods.
(5) An order prohibiting the destruction of specific cannabis goods.
(c) The emergency decision and order issued by the Department shall include a brief
explanation of the factual and legal bases of the emergency decision that justify the
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 224 of 229
Department's determination that emergency action is necessary, and the specific actions
ordered. The emergency decision and order shall be effective when issued or as
otherwise provided by the decision and order.
(d) To issue an administrative hold that prohibits activity related to specified cannabis
goods, the Department shall comply with the following:
(1) Provide notice of the administrative hold that includes a description of the cannabis
goods subject to the administrative hold.
(2) Following notice, the Department shall identify the cannabis goods subject to the
administrative hold in the track and trace system.
(e) A licensee subject to an administrative hold shall comply with the following:
(1) Within 24 hours after receipt of notice of the administrative hold, physically segregate
all designated cannabis goods in a limited-access area of the licensed premises. The
licensee shall ensure that all cannabis goods subject to the administrative hold are
safeguarded and preserved in a manner that prevents tampering, degradation, or
contamination.
(2) While the administrative hold is in effect, the licensee shall not sell, donate, transfer,
transport, gift, or destroy the cannabis goods subject to the hold.
(3) A microbusiness licensee subject to an administrative hold may continue to cultivate
any cannabis subject to an administrative hold. If the cannabis subject to the hold must
be harvested, the licensee shall place the harvested cannabis into separate batches.
(4) A licensee may voluntarily surrender cannabis goods that are subject to an
administrative hold. The licensee shall identify the cannabis goods being voluntarily
surrendered in the track and trace system. Voluntary surrender shall not be construed to
waive the right to a hearing or any associated rights.
(f) To issue a temporary suspension, the Department shall specify in the order that the
licensee shall immediately cease conducting all commercial cannabis activities under its
license, unless otherwise specified in the order.
(g) A microbusiness licensee subject to a temporary suspension may continue to
cultivate cannabis at the licensed premises only as prescribed by the Department in the
order. If the order permits the cannabis to be harvested, the licensee shall place the
harvested cannabis into separate batches.
(h) The emergency decision and order for temporary, interim relief shall be issued in
accordance with the following procedures:
(1) The Department shall give notice of the emergency decision and order and an
opportunity to be heard to the licensee prior to the issuance, or effective date, of the
emergency decision and order, if practicable.
(2) Notice and hearing under this section may be oral or written and may be provided by
telephone, personal service, mail, facsimile transmission, electronic mail, or other
electronic means, as the circumstances permit.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 225 of 229
(3) Notice may be given to the licensee, any person meeting the definition of owner for
the license, or to a manager or other personnel at the licensed premises.
(4) Upon receipt of the notice, the licensee may request a hearing within three (3)
business days by submitting a written request for hearing to the Department through
electronic mail, facsimile transmission, or other means. The hearing shall commence
within five (5) business days after receipt of the written request for hearing, unless a later
time is agreed upon by the Department and the licensee.
(5) The hearing may be conducted in the same manner as an informal conference under
section 17803; however, the timeframes provided in section 17803 shall not apply to a
hearing under this section. Pre-hearing discovery or cross-examination of witnesses is
not required under this section.
(6) The emergency decision and order shall be affirmed, modified, or set aside as
determined appropriate by the Department within five (5) business days after the hearing.
(i) Within ten (10) calendar days after the issuance or effective date of the emergency
decision and order for temporary, interim relief, the Department shall commence
adjudicative proceedings in accordance with chapter 5 (commencing with section 11500)
of part 1 of division 3 of title 2 of the Government Code to resolve the underlying issues
giving rise to the temporary, interim relief.
(j) After formal proceedings are held pursuant to subsection (i), a licensee aggrieved by a
final decision of the Department may appeal the decision to the Cannabis Control
Appeals Panel pursuant to section 26043 of the Act.
(k) Notwithstanding administrative proceedings commenced pursuant to subsection (i),
the licensee may obtain judicial review of the emergency decision and order pursuant to
section 1094.5 of the Code of Civil Procedure in the manner provided in section
11460.80 of the Government Code without exhaustion of administrative remedies.
(l) The Department's authority provided by this section may be used in addition to any
civil, criminal, or other administrative remedies available to the Department.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26012, Business and Professions Code; and Sections 11460.10, 11460.20, 11460.30,
11460.40, 11460.50, 11460.60, 11460.70 and 11460.80, Government Code.
Article 5. Posting Notices of Suspension and Revocation
§17816. Posting of Notice of Suspension.
(a) A licensee whose license has been suspended shall conspicuously and continuously
display a notice on the exterior of the licensee's premises for the duration of the
suspension.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 226 of 229
(b) The notice shall be 11 inches in length and 8.5 inches in width. The notice shall read:
NOTICE OF SUSPENSION
The Department of Cannabis Control License(s) Issued For This
Premises Has Been
Suspended For Violation of State Law
(c) Advertising or posting signs to the effect that the licensed premises has been closed
or that business has been suspended for any reason other than the reason provided in
the decision suspending the license, shall be deemed a violation of this section.
(d) Failure to display the notice as required in this section or removal of the notice prior to
the expiration of the suspension shall be a violation of this section and may result in
additional disciplinary action.
(e) A licensee shall notify the Department by submitting the Licensee Notification and
Request Form, Notifications and Requests Regarding Regulatory Compliance, DCC-LIC-
028 (New 2/22), incorporated herein by reference, within 24 hours of discovering that the
notice under subsection (b) has been removed or damaged to an extent that makes the
notice illegible.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26011.5 and 26012, Business and Professions Code.
§17817. Posting of Notice of Revocation.
(a) A person whose license has been revoked shall conspicuously display a notice on the
exterior of the premises indicating that the license has been revoked. The notice shall
remain continuously on the premises for at least 15 calendar days.
(b) The notice shall be 11 inches in length and 8.5 inches in width. The notice shall read:
NOTICE OF REVOCATION
The Department of Cannabis Control License(s) Issued For This
Premises Has Been
Revoked For Violation of State Law
(c) Advertising or posting signs to the effect that the premises has been closed, or that
business has been suspended for any reason other than the reason provided in the
decision revoking the license, shall be deemed a violation of this section.
(d) If the Department revokes a license at a licensed premises that has one or more
licenses at the location that will remain active after the revocation, the revocation notice
shall remain posted for a period of at least 15 calendar days.
(e) Failure to display the notice for the time required in this section shall be a violation of
this section and may result in additional disciplinary action.
(f) A person whose license has been revoked shall notify the Department by submitting
the Licensee Notification and Request Form, Notifications and Requests Regarding
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 227 of 229
Regulatory Compliance, DCC-LIC-028 (New 2/22), incorporated herein by reference,
within 24 hours of discovering that the notice under subsection (b) has been removed or
damaged to an extent that makes the notice illegible.
Authority cited: Section 26013, Business and Professions Code. Reference: Sections
26011.5 and 26012, Business and Professions Code.
Chapter 13. Other Provisions
Article 1. Research Funding
§17900. Eligibility.
(a) Only public universities in California shall be eligible to be selected to receive funds
disbursed pursuant to Revenue and Taxation Code section 34019(b).
(b) Subject to available funding, the amounts to be disbursed to the university or
universities will not exceed the sum of ten million dollars ($10,000,000) for each fiscal
year, ending with the 2028-2029 fiscal year.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
34019, Revenue and Taxation Code.
§17901. Request for Proposals.
(a) A Request for Proposal (RFP) is the document issued by the Department to notify all
eligible fund recipients of the following, at a minimum:
(1) The funding available for research related to the Act or this division;
(2) Disbursement of funds to eligible applicants through a review and selection process,
including the criteria that will be used for review and selection;
(3) The specified timeframes for the proposal review and selection process, including the
deadline for submission of proposals;
(4) Proposal requirements, including necessary documentation;
(5) Any priorities or restrictions imposed upon the use of the funds;
(6) The governing statutes and regulations; and
(7) The name, address, and telephone number of a contact person within the Department
who can provide further information regarding the process for submission of proposals.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
34019, Revenue and Taxation Code.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 228 of 229
§17902. Selection Process and Criteria.
(a) The selection process shall involve eligible proposals timely received by the
Department, in response to an applicable RFP, or similar notice.
(b) The Department will consider only one proposal per applicant for a given research
project. Applicants may submit more than one proposal if the proposals are for separate
and distinct research projects or activities.
(c) The Department will make a selection for funding based on criteria including, but not
limited to:
(1) The extent to which the proposed project is designed to achieve objectives specified
in Revenue and Taxation Code section 34019(b).
(2) The extent to which the proposed project is designed to achieve measurable
outcomes, and the clarity of the measures for success, including, for research-based
objectives, the scientific and technical merit of the proposed project as evaluated by
relevant experts.
(3) The extent to which the proposed project is feasible, demonstrated by:
(A) A timeline for project completion, including readiness; and
(B) Budget detail.
(4) Qualifications of the staff who will be assigned to or working on the proposed project.
(5) Any other criteria to determine the proposed project's efficacy in evaluating the
implementation and effect of the Act.
(d) Applicants selected for funding will be notified of the selection and amount of funding
in writing.
(e) The Department's selection decision is final and not subject to appeal.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
34019, Revenue and Taxation Code.
§17903. Release of Funds.
(a) The Department shall not cause funds to be disbursed until the recipient has
executed a Grant Agreement and any other required documents.
(b) Selected recipients shall receive a single disbursement of funds for the duration of the
research project.
(c) Funds released to the recipient that will be used for the purchase of any equipment
related to the research project shall, at a minimum, meet the following conditions:
(1) Prior to the purchase of any equipment, the recipient shall obtain written approval
from the Department.
(2) Receipts or other documentation for the purchase of any equipment shall be provided
to the Department immediately upon purchase and request and retained pursuant to
section 17904.
Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 229 of 229
(d) Any funds that are not used prior to the completion of the research project shall be
forfeited.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
34019, Revenue and Taxation Code.
§17904. Reports to the Department.
(a) The recipient of funds shall provide regular performance reports to the Department in
the following manner, unless otherwise specified in the Grant Agreement:
(1) At monthly intervals for research projects with an estimated completion time not
exceeding one year.
(2) At quarterly intervals for research projects with an estimated completion time
exceeding one year.
(b) Performance reports shall include, at a minimum:
(1) A detailed, estimated time schedule of completion for the research project;
(2) A description of any measurable outcomes, results achieved, or other completed
objectives of the research project;
(3) A description of remaining work to be completed;
(4) A summary of expenditures of the funds and statement of whether the research
project is meeting the proposed budget. If not, the reasons for any discrepancies and a
list of actions that will be taken to ensure completion of the research project; and
(5) Any changes to the information provided in the proposal, including, but not limited to,
change in staff.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
34019, Revenue and Taxation Code.
§17905. Research Records.
Recipients shall retain all research and financial data necessary to substantiate the
purposes for which the funds were spent for the duration of the funding, and for a period
of seven years after completion of the research project. Recipients shall provide this
documentation to the Department upon request.
Authority cited: Section 26013, Business and Professions Code. Reference: Section
26160, Business and Professions Code; and Section 34019, Revenue and Taxation
Code.
