On November 16, 2017, California’s three state licensing cannabis authorities publicly noticed proposed emergency regulations for commercial medicinal and adult-use cannabis.

Today, we will cover some of the highlights for manufacturers in this industry.

The California Department of Public Health (CDPH) will issue temporary business licenses that allow a business to engage in commercial cannabis activity.  The licenses are valid for 120 days and may be extended for an additional 90 if the business submit a complete annual license application.

Applications for annual licenses will be accepted online beginning in December, 2017.  Those applying for an annual license must disclose owners and financial interest holders, typical business information, a description of their procedure for waste disposal, transportation and security, as well as other requirements.  Businesses that are currently operating under the September 1, 2016, Compassionate Use Act will receive priority review.  The annual fees are $1,000 per license for the application and $2,000 to $75,000 for licensing depending on the gross annual revenue of the licensed premises. Applicants must have a valid local permit.

Licenses that are issued will have one category and one type.  A-licenses will be issued for adult-use, and M licenses will be used for medical use.  In addition, a Type 7 license will be issued for those extracting volatile solvents.  A Type 6 license will be issued for those extracting non-volatile solvents.  A Type N license will be issued for infusion products.  A Type P license will be issued for packaging and labeling only.

Products cannot be infused with nicotine or alcohol or have caffeine added.  Edible products are limited to 10 mg of THC per serving and 100 mg of THC per package.

Cannabis products should not have packaging that is attractive to children or is transparent.  Packaging should be re-sealable and child-resistant.

One important point to note is that a transition period will be in effect from January 1 to July 1, 2018, for state licensing authorities.  During this period, products can move between A and M licensees.  There will be some transition allowed for packaging, but packaging must still be child resistant and comply with certain other requirements such as the THC limits and product restrictions outlined in the emergency regulations.

Additional laws and changes are likely to occur.  And this video only covers some of the highlights of the emergency regulations but is by no means a complete summary.

In addition, please remember that cannabis is still a Schedule I drug under the Federal Controlled Substances Act and wholly illegal, even for medical use.  Anyone interested in this industry should make sure they are fully informed of the Federal laws related to cannabis.

Disclaimer: The tips and materials provided on this page are for informational purposes only, offered as public service. No information on this website should be considered legal advice or used as a substitute for legal advice. For legal advice, you should contact an attorney directly.

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