CHEAC Summary. BCC Emergency Cannabis Regulations
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1 CHEAC Summary BCC Emergency Cannabis Regulatins Distributin, Transprtatin, Dispensaries, and Labratries The Bureau f Cannabis Cntrl (BCC), frmerly named the Bureau f Medical Cannabis Regulatin (BMCR), has released emergency regulatins fcused n the applicatin, licensing, and perating requirements fr the distributin, transprtatin, retail, and testing f cannabis (bth medicinal and adult use) thrughut Califrnia. We encurage members t read the entire emergency regulatins dcument released by the BCC; hwever, a summary f the mst relevant aspects is prvided belw. Key Changes Made in Regulatins Requires emplyees invlved in distributin, transprtatin, dispensaries and labratries are at least 21 years f age. Creates a temprary license applicatin t be valid fr 120 days. N lnger requires applicants t prvide cntact infrmatin fr the lcal jurisdictin, but instead slely requires a valid license, permit, r ther authrizatin issued by a lcal jurisdictin, requires the bureau t cntact the jurisdictin and allws the lcal jurisdictin 10 days t respnd. Creates an A-license fr adult use and M-license fr medicinal. N lnger allws law enfrcement fficers t hld licenses in different cunties. Requires licensees t cmply with CEQA requirements. Prescribes applicatin and licensing fees. Grants pririty licensing fr applicants perating prir t September 1, 2016, instead f January 1, Includes new requirements arund excessive cncentratin f licensees in a cunty. Allws a licensee t have the same licensed premises fr tw separate cmmercial cannabis licensees. Allws premises t be lcated within a 600-ft radius if already permitted r licensed by the lcal jurisdictin. Allws licensees t request relief frm licensing requirements in the event f a disaster. Creates cannabis event licensees fr and cannabis event rganizer licensees. Creates micrbusiness licenses fr a licensee engaging in at least three cmmercial cannabis activities (cultivatin, manufacturing, distributin and retail sale).
2 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Requires recnciliatin f inventries at least every 14 days nw instead f every 7 days. N lnger allws medicinal cannabis patients access t retailer premises with a parent r guardian. Changed retailer hurs f peratins and delivery hurs f peratins frm 6:00 am t 9:00 pm t 6:00 am t 10:00 pm. Allws free cannabis gds t medicinal cannabis patients wh have difficulty accessing medicinal cannabis gds. Operatinal Definitins (pages 1-2) Cannabis gds cannabis, including dried flwer, and prducts cntaining cannabis. Medical cannabis patient includes a qualified patient as defined in Health and Safety Cde sectin and a persn in pssessin f a valid identificatin card issued under Health and Safety Cde sectin Temprary License Applicatin Requirements (pages 2-4) Applicants must prvide a cpy f a valid license, permit r ther authrizatin issued by a lcal jurisdictin. The BCC will cntact the lcal jurisdictin t validate the authrizatin. The lcal jurisdictin will have 10 calendar days t respnd, therwise the authrizatin s cnsidered valid. A temprary license is valid fr 120 days frm the effective date. N temprary license is valid prir t January 1, Temprary licenses may be extended by the Bureau fr an additinal 90-day perid if a cmpleted applicatin fr an annual license has been submitted prir t the temprary license expiring. Annual License Applicatin Requirements (pages 4-9) Applicatin must be cmpleted by an wner. Applicatins must indicate the type f license, including A-license fr adult use and M- license fr medical cannabis. Applicatins must include the business federal emplyer identificatin number. Applicants must prvide a detailed descriptin f any suspensin r revcatin f a cmmercial cannabis license r sanctins fr unlicensed cmmercial cannabis activity Applicants must prvide a diagram f the premises. Applicants must prvide a cpy f a valid license, permit r ther authrizatin issued by a lcal jurisdictin. The BCC will cntact the lcal jurisdictin t validate the Page 2 f 12
3 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 authrizatin. The lcal jurisdictin will have 10 calendar days t respnd, therwise the authrizatin is cnsidered valid. Applicants must prvide a detailed descriptin f the applicants perating prcedures fr transprtatin, inventry, nn-labratry quality cntrl, and security, as applicable. Limited Waiver f Svereign Immunity (pages 12-13) Any applicants that fall within the scpe f a svereign immunity must perate in full cmpliance with the state laws and regulatins, including state r lcal administrative r judicial enfrcement prvisins. The Bureau shall nt apprve an applicatin fr a state license if apprval f the license wuld vilate the prvisins f any lcal rdinance r regulatin issued by the cunty r city. Cmpliance with the Califrnia Envirnmental Quality Act (page 13) Applicants shall prvide evidence f the exemptin frm, r cmpliance with the Califrnia Envirnmental Quality Act. Licensing Fees (pages 15-17) Applicatins fr annual licenses, cannabis event rganizer license, and a temprary cannabis has a fee f $1,000 per applicatin. Applicatins t mdify the physical premises is a fee f $500. License fees range between $500 t $125,000 depending n the license and the estimated maximum dllar value. Pririty Licensing (page 17) Available fr annual licenses nly and desn t apply t temprary r cannabis event rganizer. T be eligible, an applicant must demnstrate previusly perating befre September 1, 2016 in cmpliance with the Cmpassinate Use Act. Excessive Cncentratin (pages 19-20) In determining whether t grant, deny, r renew a retail r micrbusiness license, the Bureau must cnsider if excessive cncentratin exists in an area where the licensee will perate. Excessive cncentratin is measured based n the ppulatin within the census tract. Excessive cncentratin is nt cnsidered when granting temprary licenses. Premises Lcatin (page 24) Subject t the Bureau, a licensee may have the same licensed premises fr tw separate cannabis licenses. Page 3 f 12
4 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 A premise cannt be lcated within a 600-ft radius f a K-12 schl, daycare center, r yuth center. If a lcal jurisdictin issued a license r permit within the 600-ft radius, the Bureau may apprve the premises under certain cnditins. Transitin t Regulated Cmmercial Cannabis (pages 25-26) Beginning January 1, 2018, licensees cannt sell r transprt any edible cannabis prduct that exceeds 10 milligrams f tetrahydrcannabinl (THC) per serving. Between January 1, 2018, and July 1, 2018, licensees can: Cnduct business with ther licensees irrespective f the M r A designatin. Sell cannabis gds that are nt in child resistant packaging if placed int it by the retailer at the time f sale. Sell and transprt nn-edible cannabis prducts that d nt meet the THC limits per package specified by CDPH. Sell cannabis gds that d nt meet the labeling requirements if sld with a sticker warning. Sell cannabis gds that have nt been labratry tested with a label n the package. Sell cannabis gds that d nt meet the ingredient requirements r appearance requirements. Dried flwer can be packed by the retailer fr individual sale. Emplyee Age Restrictin (page 26) Licensees cannt emply r retain persns under the age f 21. Cmmercial Cannabis Activity between Licensees (page 26) Beginning July 1, 2018, A-licensees can nly cnduct business with A-licensees and M- licensees with M-licensees. Significant Discrepancies in Inventry (page 27) A significant discrepancy in inventry means a difference in actual inventry and recrds f at least $5,000 r 2 percent f the average mnthly sales. Ntificatin f Law Enfrcement (page 28) A licensee shall ntify the Bureau f lcal law enfrcement within 24 hurs f discvering a significant discvery, becming aware f r has reasn t suspect diversin, theft, lss r unauthrized alteratin f recrds, r breach f security. Page 4 f 12
5 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Disaster Relief (pages 29-30) A licensee may request relief frm specific licensing requirements if unable t cmply due t a disaster. Disaster is defined as a fire, fld, strm, tidal wave, earthquake, r similar public calamity, whether r nt resulting frm natural cause. License Psting Requirement (page 29) Licenses must be psted n the premises where it can be viewed by state and lcal agencies and the public. Advertising Placement (page 30) Any advertising r marketing must nly be displayed r cmmunicated where at least 71.6 percent f the audience is reasnably expected t be 21 years ld. Age Cnfirmatin in Advertising (page 30) Prir t advertising r marketing invlving direct, individualized cmmunicatin r dialgue, including electrnic r physical mail and telephne, the licensee must use age affirmatin t verify the recipient is 21 years r lder. Access t Limited-Access Areas (page 31) Any persn n the licensed premises must be escrted by an emplyee f the licensees. Emplyees and cntractrs are exempted. Licensee Emplyee Badge Requirements (page 31) Must be wrn at all times while engaging in cmmercial cannabis activity. Vide Surveillance System (pages 31-32) Licensed premises must have digital vide surveillance, which can be accessed thrugh the internet. Cameras must be munted in a fixed lcatin, and must clearly recrd images under surveillance. Surveillance recrdings must be kept fr 90 days and are subject t inspectin by the Bureau. Security Persnnel; Lcks; Alarm System (page 33) Retail licensee r micrbusiness licensee engaged in retail sale must have hired r cntracted security persnnel. Cmmercial-grade nnresidential dr lcks n all pints f entry and exit t the licensed premises must be used. Licensee must maintain an alarm system and all infrmatin related t the mnitring must be made available t the Bureau. Page 5 f 12
6 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Track and Trace Requirements (pages 33-37) Licensees must create and maintain an active fundatinal accunt within the track and trace system prir t engaging in any cmmercial cannabis activity. Accunt managers must attend a cmplete all required system training. Destructin and dispsal, labratry testing and results and any ther activity must be entered int the track and trace system. All transactins must be entered by 11:59 pm n the date the transactin ccurred. If access int the system is lst, the licensee must dcument and ntify the Bureau immediately and must prepare and maintain cmprehensive recrds detailing all cmmercial cannabis activities. N transprt, transfer r delivery f cannabis gds can be made until access is restred and recrded int the system. Physical inventry must be recnciled t the recrds at least nce every 14 days. Temprary licenses are nt required t recrd cmmercial cannabis activity int the track and trace system. Returns and Destructin (pages 37-39) A licensee cannt return cannabis gds purchased frm anther licensee. N cannabis gd can be dispsed f as cannabis waste unless the gds have been remved frm their packaging and rendered as unrecgnizable and unusable. Cannabis waste may nt be sld. Licensees must cmply with applicable waste management laws. Distributrs (pages 39-47) Distributrs may nt stre r distribute nn-cannabis gds n the premises licensed fr distributin. Distributrs must ensure that cannabis gds batches are stred separately and distinctly frm ther cannabis gds batches n the distributr s premises. Transprtatin can nly be cnducted by persns hlding a distributr license r emplyees under the licensed premises. Distributrs may package, re-package, label, and re-label cannabis fr retail sale. Distributrs may nt package, re-package, label and re-label manufactured cannabis prducts unless the distributr als hlds a manufacturing license. Cannabis gds can nly be transprted inside f a vehicle r trailer and cannt be visible r identifiable frm utside f the vehicle r trailer. Page 6 f 12
7 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 When the vehicle is unattended, the vehicle and trailers shall be lcked and secured and must nt be unattended in a residential area r parked vernight in a residential area. The distributr must have a vehicle alarm system n all transprt vehicles and trailers. Distributrs with bth an A-license and M-license can transprt bth medicinal and adultuse cannabis gds, but they must be secured and separated frm each ther in the vehicle. Nn-cannabis gds may nt be transprted with cannabis gds. Vehicles are subject t inspectin. Persns under the age f 21 may nt transprt cannabis gds. Prir t transprting cannabis gds, a distributr must generate a shipping manifest in the track and trace system. A distributr transprt nly license is authrized t engage in the transprt f cannabis gds between licensees. Retailers (pages 47-57) Access t the licensed premises f an A-retailer is limited t thse 21 and lder. Access t the licensed premises f a M-retailer is limited t individuals 18 and lder with a valid physician s recmmendatin. Any retailer limited-access area is limited t thse 21 years r lder. A retailer can sell and deliver cannabis gds between 6:00 am and 10:00 pm Pacific Time. Cannabis gds fr inspectin and sale can nly be displayed in the retail area and must nt be visible frm utside the licensed premises. Cannabis gds can be remved frm packaging fr custmer inspectin, but may nt be readily available withut assistance f the retailer persnnel. Cannabis gds remved frm their packaging may nt be sld r cnsumed and must be destryed when n lnger used fr display. A retailer may sale nn-cannabis prducts n a licensed premise if the licensee remains in cmpliance with lcal and state regulatins t thse prducts. Alchl and tbacc prducts cannt be sld n the retailer s premises. Live plants can be sld nly if the plant is immature and meets key requirements. Retailers shall nt sell mre than 28.5 grams f nn-cncentrated cannabis in a single day t a single custmer. Page 7 f 12
8 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 A retailer cannt sell mre than 8 grams f cncentrated cannabis t a single persn in a single day. A retailer cannt sell mre than 8 unces f medicinal cannabis in a single da t a single medicinal cannabis custmer. Retailers cannt resell cannabis gds that have been returned r abandned and must destry them. A retailer must nt prvide free cannabis gds t any persn, unless ding s by a Type 10-Retailer M-license, a Type 9-Retialer Nn-strefrnt-M license, r a micrbusiness M-license, in rder t prvide access t medicinal cannabis patients wh have difficulty accessing medicinal cannabis gds. A retailer shall nt accept, pssess, r sell cannabis gds that are nt packaged as they will be sld at final sale. Retailers cannt package r label cannabis gds. Purchased cannabis gds must leave the retailers premises in paque exit packaging. Type 9-Nn-Strefrnt retailers may nt be pened t the public. Deliveries must be perfrmed by a delivery emplyee f a retailer that is at least 21 years r lder. Delivery begins when the emplyee leaves the retailer s premises with cannabis gds fr delivery and returns t the retailers licensed premises. A retailer may nly deliver cannabis gds t a physical address in Califrnia and may nt leave the state while in pssessin f cannabis gds. A retailer s delivery emplyee must travel nly in an enclsed mtr vehicle. Gds must nt be visible t the public. The retailer s delivery vehicle must nt be unattended unless lcked an equipped with an alarm. The vehicle must be utfitted with a GPS device. A retailer s delivery emplyee must nt carry cannabis gds in excess f $3,000 at any time. A retailer s delivery emplyee must nt cnsume cannabis gds during delivery. A retailer must prepare a delivery request receipt fr each delivery f cannabis gds. Retailers must nly receive shipments f cannabis gds between 6:00 am 10:00 pm Pacific Time. Retailers must perfrm a recnciliatin f its inventry at least nce every 14 days and must ntify the Bureau and law enfrcement f a significant discrepancy upn discvery. Page 8 f 12
9 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Micrbusinesses (pages 57-66) T hld a micrbusiness license, a licensee must engage in at least three f the fllwing cmmercial cannabis activities: cultivatin, manufacturing, distributin and retail sale. Micrbusinesses engaging in cultivatin must: Prvide evidence with the applicable Reginal Water Quality Cntrl Bard r State Water Resurces Cntrl Bard fr water quality prtectin prgrams r written verificatin frm the apprpriate bard that enrllment is nt necessary. Prvide an attestatin that the lcal fire department has been ntified f the cultivatin site if the applicant entity is an indr license type. Prvide a cultivatin plan. Prvide infrmatin regarding water surces. Micrbusiness applicatins fr manufacturing activities must include the type f manufacturing activity t be cnducted (extractin, infusin, packaging, and/r labeling), a list f prducts t be manufactured and an acknwledgement that the applicant understands that the infrmatin prvided may be shared with CDPH and that CDPH may cnduct inspectins. Cannabis Events (pages 66-72) Cannabis events can be held at a cunty fair r district agricultural assciatin with apprval frm the lcal jurisdictin. Cannabis event rganizer licensees are nt authrized r licensed t cultivate, distribute, manufacture, r retail cannabis r cannabis prducts unless it btains apprpriate licenses r authrizatins t engage in cmmercial activities. Temprary cannabis event licenses are nly issued t a persn wh hlds a cannabis event rganizer license issued by the Bureau. N temprary cannabis event license will be issued fr mre than 4 days. Applicatins fr temprary cannabis event license must: Be submitted n less than 60 days befre the first day f the cannabis event. A diagram f the physical layut f the event must be submitted, listing all cannabis cnsumptin areas and areas where cannabis will be sld. A list f all licensees that will be prviding nsite sales f cannabis gds at the event, with a final list being prvided t the Bureau n less than 5 days befre the event. Temprary cannabis event sales must be limited t persns 21 r lder. Page 9 f 12
10 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Sales at cannabis events must be perfrmed by a retailer r micrbusiness authrized t sell cannabis t retail custmers. Cnsumptin f alchl r tbacc shall nt be allwed n the cannabis event premises. Cannabis sld nsite must be transprted by a distributr. All cannabis gds at the event must adhere t all track and trace requirements. All cannabis gds sld must be placed in an exit package. All cannabis gds sld must cmply with all requirements fr labratry testing and labeling within this divisin. Access t cannabis cnsumptin areas must be restricted t persns 21 and lder and must nt be visible frm any public place r nn-age restricted area. The cannabis event rganizer must hire r cntract fr security t be present during the event. Testing Labratries (page ) Must maintain ISO/IEC accreditatin fr the testing f cannabinids, heavy metals, micrbial impurities, myctxins, residual pesticides, residual slvents and prcessing chemicals and terpenids and must make all recrds available t the bureau. A labratry may apply fr a prvisinal testing labratry license if the applicant has r intends t seek ISO/IEC accreditatin. The prvisinal license is valid fr 12 mnths. Labratries must develp and implement a sampling standard perating prcedure that details the labratry s methd fr btaining representative samples f cannabis and cannabis prducts. Labratries must develp and implement chain f custdy (COC) prtcls t ensure accurate dcumentatin f transprt, handling, strage and destructin f samples. The labratry must develp, implement and maintain written standard perating prcedures (SOP) fr particular labratry prcesses. The labratry shall develp, implement and validate test methds fr the analyses f samples. Cannabis and cannabis prducts cannt be sld, transferred t a retailer, r released fr retail sale, unless a representative sample f the cannabis r cannabis prduct has undergne and passed all testing. A labratry must analyze a sample f edible cannabis prduct that cntains mre than ne serving per unit t determine whether the prduct is f hmgenus THC cntent and shall be test fr hmgeneity every six mnths thereafter. Page 10 f 12
11 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 A sample f edible cannabis prduct is deemed t have passed if the standard deviatin f THC cncentratin between samples cllected des nt exceed plus r minus 10%. If it fails, it may nt be released fr retail sale. A labratry shall analyze a sample f cannabis r cannabis prduct t determine whether residual pesticides, micrbial impurities, myctxins, freign material, and/r heavy metals are present. A labratry shall analyze the cannabinid and terpenid prfile f the sample t see if it cnfrms t the labeled cntent. The labratry shall generate a certificate f analysis (COA) nly fr each primary sample that the labratry analyzes. The COA infrmatin must be entered int the track and trace system. Samples may be remediated and retested twice, after which the entire batch may nt be released fr retail sale. The labratry must develp a labratry quality assurance prgram t assure the reliability and validity f the analytical data prduced. A labratry must participate in a prficiency testing prgram prvided by an rganizatin that perates with the requirements f ISO/IEC at least nce every six mnths after receiving accreditatin. The labratry must cnduct an internal audit at least nce per year in accrdance with ISO/IEC accrediting bdy requirements. Labratries may nly emply persns wh are at least 21 r lder. The labratry must develp and implement an emplyee training prgram t ensure cmpetency f emplyees. Labratries must emply a supervisr r management emplyee and analyst. Enfrcement (pages ) The Bureau and its authrized representatives must have full access t inspect and enter licensed premises, test any vehicle r equipment, test any cannabis gds r related materials, and cpy bks and recrds. The Bureau may issue a ntice t cmply with minr vilatins. Licensees will have 15 calendar days t cmply. The Bureau may issue citatins cntaining rders f abatement and fines against a licensee, r unlicensed persn fr acts r missins in vilatin f any prvisin f the Act r any regulatins. Citatins may be cntested within 30 calendar days f service f the citatin by requesting a hearing in writing t the Bureau. Page 11 f 12
12 CHEAC Summary BCC Regulatins (Distributin, Transprtatin, Dispensaries, and Labratries) Nvember 21, 2017 Peace fficers may use a persn under the age f 21 t attempt t purchase cannabis gds fr purpses f enfrcing the Act and t apprehend licensees, emplyees, r agents f licensees, wh sell cannabis gds t minrs. Licensees may nt have unclthed persns n the licensed premises. Live entertainment may be n the premises s lng as n sexual acts r tuching r simulatins theref are n the premises. Licensees must als take reasnable steps t crrect bjectinable cnditins that ccur during perating hurs n public sidewalks abutting the license premises, such as calling lcal law enfrcement, making gd faith effrts t remve items that facilitate litering and requesting thse persns engaging in bjectinable activities cease. The Bureau may petitin fr an interim rder t suspend any license r impse licensing restrictins if the licensee wuld endanger the public health, safety r welfare. Ntices f suspensin and/r revcatin must be cnspicuusly displayed n the exterir f the licensee s premises. The Bureau may request an administrative law judge t direct a licensee fund t have cmmitted a vilatin r vilatins f the Act r any regulatin, t pay a reasnable fee fr the cst f investigatin and enfrcement. Page 12 f 12
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