The Bureau of Cannabis Control (BCC) has released the new cannabis regulations that will regulate the State of California. The new rules will enter into effect on the January 1st, BCC has been holding stakeholder meetings and also gathering public feedback on many of the proposed rules since the last update in the regulations.
These new cannabis regulations will help ensure that all cannabis products that come into the market are properly tested and don’t get into the hands of children. Below are the key highlights of the regulations.
Farm Size Limitations
- The new cannabis regulations don’t mention any restriction to the sizes of marijuana farms and nurseries.
Taxes For Cultivators
A cultivation tax is imposed on all harvested cannabis that enters the commercial market. Cannabis cultivators are required to pay the cultivation tax. The rate of the cultivation tax is:
- $9.25 per dry-weight ounce of cannabis flowers that enter the commercial market, and
- $2.75 per dry-weight ounce of cannabis leaves that enter the commercial market.
- A licensed testing lab needs to analyze a sample of cannabis or cannabis product to determine whether residual pesticides are present.
- A sample will 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 below in Category I are not detected, and
- (2) The presence of any residual pesticide listed below in Category II does not exceed the indicated action levels.
- You can check the Category I and II lists on this link
New Limits for THC Products
- Products such as tinctures, capsules, and topicals may contain up to 1000 mg of THC per package for recreational use and 2000 mg for medicinal use.
- Edibles may contain up to 10mg of THC per serving and 100mg per package.
- The CDPH will issue temporary licenses allowing businesses to commence commercial cannabis activity. These licenses will be valid for 120 days after the date of the issue, with an option of extending the period up to 90 days if the business has successfully completed a complete annual license application, available on the official website.
- No fee would be charged for a temporary license. Although fees for obtaining these licenses depend upon the license type and would range from $1,205 to $77,905
In order to be compliant with the new cannabis regulations, all applicants for a commercial cannabis license shall have at least one individual who meets the definition of “owner” under Business and Professions Code section 26001(al) and is required to submit the information required of owners under section 5002. (b)
The Term “Owner” Includes any of the following:
- Any person with an aggregate ownership interest of 20 % or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, encumbrance.
- Chief executive officer of a nonprofit or other entity.
- A member of the board of directors of a nonprofit.
- Any individual who would participate in the direction, control, or management of the person applying for a license.
Who is Required to Have a License?
- No individual can manufacture cannabis without a proper license
- Every individual that manufactures cannabis should obtain and maintain a valid manufacturer license for every facility where cannabis products are to be manufactured
- The M license is required for manufacturers that produce products for the medicinal market
- The A license is required for manufacturers that produce products for the recreative market
Who is Not Qualified For a License?
- According to the new cannabis regulations any individual “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 goods
New Requirements For Labeling & Packaging
- Cannabis packaging should not look attractive to children
- The use of cartoons or the term “Candy” in the branding of the products is prohibited.
- Cannabis products should be packaged differently than other food packages while edible packaging should be stored in opaque containers.
- In cases where the cannabis products include multiple servings, it should be re-sealable and child resistant.
- Cannabis operations cannot operate within 600 feet of any school or youth center. In addition to this, these operations must shut down by 10 p.m. and require 24-hour video surveillance.
- Shopkeepers are allowed to give free cannabis products to only medical patients or their caregivers.
- A special license is required to organize a cannabis event.
- Businesses can advertise their goods, but only in those outlets where at least 71.6 percent of the audience is ”reasonably expected to be 21 years of age or older.”
- Businesses are prohibited from mixing cannabis with alcohol, nicotine, caffeine and even seafood.
- Gifts and products giveaways are not allowed for recreational marijuana users. Medical users are exempt from this restriction under certain circumstances.
- Cannabis Regulations prohibit manufacturers from producing cannabis products that include perishable items that could pose a health risk, such as dairy, seafood, or fresh meat.
Adults 21 And Older Can:
- Possess up to an ounce of cannabis flowers, eight grams of extract, or infused food and drink
- Grow up to six plants (subject to local restrictions)
- Transport personal amounts of cannabis
- Gift personal amounts to adults 21 and older
Considerations For Medical Cannabis Users
- Medical card holders will be able to get twice as much the THC limit prescribed for edibles.
- The medicinal user will also be eligible to carry cannabis products with them on a plane.
- Bureau of Cannabis Control (BCC) is the lead agency and is responsible for licensing retailers, distributors, testing labs and micro-businesses.
- Manufactured Cannabis Safety Branch, a division of the California Department of Public Health (CDPH), is responsible for regulating the manufacturers of cannabis-infused edibles for both medical and nonmedical use.
- CalCannabis Cultivation Licensing, a division of the California Department of Food and Agriculture (CDFA), is developing regulations to license cultivators and implementing a track-and-trace system to record the movement of cannabis from seed to sale.
These are only some of the important new rules that will go into effect on January 1st, to check all of them, please click links below:
- Bureau of Cannabis Control regulations (PDF)
- CA Department of Food and Agriculture regulations (PDF)
- CA Department of Public Health regulations (PDF)
BAS Research can help Cannabis Brands with labeling and packaging compliance and ensure their products entering the market are safe for consumers, including high-quality oils and proper licensing to sell in California, contact us for more information at firstname.lastname@example.org