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Emergency regulations for cannabis cultivators

CalCannabis Cultivation Licensing has released regulations ahead of the January 1, 2018 target date for adult-use cannabis legalization in California. Here, we go over some of the important points in these brand-new rules that are specifically meant for cultivators. 

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Cultivation licensing regulations

CalCannabis, a division of the California Department of Food & Agriculture (CDFH), will charge a one-time fee to review annual cultivation license applications. These fees vary and are based on average annual production, and range from $135 to $8,655. Additionally, there will be an annual license fee, which again will range in price based on average annual production. These yearly fees will run from $1,205 to $77,905. 

A business may apply for a temporary license, which will allow for cultivation before an annual license is issued, and these new regulations added an additional license type — for processors. Processors are those that trim, dry, cure, grade or package cannabis, and they may not cultivate cannabis under this license.

Track-and-Trace regulations

Cannabis products must adhere to strict track-and-trace regulations, which will allow the product to be traced through the state's supply chain from cultivation to sale. Businesses must establish track-and-trace procedures and provide training for registration, plant tagging and inventory tracking. Once CDFA approves the license application, applicants must complete a training session within 10 days of notice of receipt.

Other regulations

There are plenty of other regulations that cultivators must comply with. They must heed current state waste-management laws and include requirements for on-site composting, using a waste hauler, or self hauling.

Starting in 2022, licensees must provide details regarding energy use and sources, and in 2023, licensees must meet the average electricity greenhouse-gas-emissions intensity required of their local utility provider. 

There are also specifics regarding generator types and how they're used. One example given by the CDFA is a 50 hp generator (or greater) must demonstrate compliance with the California Airborne Toxic Control Measures. Generators rated below 50 hp should meet compliance by 2023.

IF THESE REGULATIONS ARE OVERWHELMING (AND REMEMBER, THIS LIST IS NOT INCLUSIVE — THERE ARE HUNDREDS OF NEW REGULATIONS THAT MUST BE ADHERED TO), CONTACT CCA, WHO CAN HELP SORT THESE RULES OUT AND GET YOUR CANNABIS CULTIVATION BUSINESS COMPLIANT. 

Monica Beyer