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1BUREAU OF CANNABIS CONTROL
2PROPOSED TEXT OF REGULATIONS
3CALIFORNIA CODE OF REGULATIONS
4TITLE 16
5DIVISION 42. BUREAU OF CANNABIS CONTROL
6
7All of the proposed text sections and documents incorporated by reference are proposed to be
8added to the California Code of Regulations under Division 42 of Title 16:
9Chapter 1. ALL BUREAU LICENSEES
10Article 1. Division Definitions
11§ 5000. Definitions
12For the purposes of this division, the definitions in this section shall govern the construction of
13this division unless otherwise indicated.
14(a) “Act” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act.
15(b) “Bureau” means the Bureau of Cannabis Control, previously named the Bureau of Marijuana
16Control, Bureau of Medical Cannabis Regulation, and Bureau of Medical Marijuana Regulation.
17(c) “Cannabis accessories” has the same meaning as in Health and Safety Code section 11018.2.
18(d) “Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
19(e) “Cannabis waste” means waste that is not hazardous waste, as defined in Public Resources
20Code section 40141, and is organic waste, as defined in Public Resources Code section 42649.8
21(c), that contains cannabis and that has been made unusable and unrecognizable in the manner
22prescribed in sections 5054 and 5055 of this division.
23(f) “Canopy” means the designated area(s) at a licensed premises that will contain mature plants
24at any point in time.
25(g) “Delivery employee” means an individual employed by a licensed retailer or licensed
26microbusiness who delivers cannabis goods from the licensed retailer or licensed microbusiness
27premises to a customer at a physical address.
28(h) “Free cannabis goods” means any amount of cannabis goods provided to any person without
29cost or payment or exchange of any other thing of value.
30(i) “Kief” means the resinous trichomes of cannabis that have been separated from the cannabis
31plant.
32(j) “Limited-access area” means an area in which cannabis goods are stored or held and is only
33accessible to a licensee and its employees and contractors.
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36(k) “Lot number” or “batch number” means a distinctive group of numbers, letters, or symbols or
37any combination of these that is unique to a group of cannabis goods.
38(l) “Medicinal cannabis patient” includes both a qualified patient as defined in Health and Safety
39Code section 11362.7 and, a person in possession of a valid identification card issued under
40Health and Safety Code section 11362.71.
41(m) “Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile
42solvent. For purposes of this division, a nonvolatile solvent includes carbon dioxide (CO2) used
43for extraction and ethanol used for extraction or post-extraction processing.
44(n) “Package” and “Packaging” means any container or wrapper that may be used for enclosing
45or containing any cannabis goods for final retail sale. “Package” and “packaging” does not
46include a shipping container or outer wrapping used solely for the transport of cannabis goods in
47bulk quantity to a licensee.
48(o) “Pre-roll” means any combination of the following rolled in paper: flower, shake, leaf, or kief
49that is obtained from accumulation in containers or sifted from loose, dry cannabis flower or leaf
50with a mesh screen or sieve.
51(p) “Publicly owned land” means any building or real property that is owned by a city, county,
52state, federal, or other government entity.
53(q) “Residential area” is an area that is within 600 feet of any single-family or multifamily
54residence, other than commercial hotels, motels, and similar establishments for temporary
55lodging.
56(r) “Retail area” means a building, room, or other area that is open to the public, upon the
57licensed retailer or licensed microbusiness premises in which cannabis goods are sold or
58displayed.
59(s) “Sublet” means to lease or rent all or part of a leased or rented property.
60(t) “Transport” means the physical movement of cannabis goods from one licensed premises to
61another licensed premises.
62(u) “Vehicle alarm system” is a device or series of devices installed to discourage theft of the
63vehicle or its contents and is intended to summon general attention or to summon law
64enforcement as a result of an indication of an attempted breach of the vehicle.
65Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business
66and Professions Code.
67Article 2. Applications
68§ 5001. Temporary License Application Requirements
69(a) Temporary license applications may be completed and submitted online at www.bcc.ca.gov
70or completed in hard copy and submitted by delivering a printed copy to the Bureau’s office(s).
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74(b) Applicants who submit their applications online shall first register for a user account. To
75register for a user account, the applicant shall do all of the following:
76(1) Create a user name, password, and security question and answer;
77(2) Provide an email address; and
78(3) Provide the owner’s first and last name, primary phone number, social security number or
79individual taxpayer identification number, date of birth, and mailing address.
80(c) An application must be completed by an owner as defined by section 5003 of this division.
81An application must be submitted to the Bureau for each temporary license applied for. An
82application for a temporary license includes:
83(1) The legal business name of the applicant.
84(2) The email address of the applicant’s business and the telephone number for the premises.
85(3) The business’ federal employer identification number.
86
87(4) A description of the business organizational structure of the applicant, such as partnership or
88corporation.
89(5) The commercial cannabis license that the applicant is applying for, and whether the applicant
90is requesting that the license be designated as medicinal, adult-use, or both. Testing laboratory
91applicants do not have to designate medicinal or adult-use, as testing laboratory licenses allow
92the holder to test both medicinal and adult-use cannabis.
93(6) The contact information for the applicant’s designated primary contact person including the
94name, title, phone number, and email address of the individual.
95(7) For each owner who meets the criteria of Business and Professions Code section 26001(al),
96the owner’s name, title, percentage of ownership, mailing address, telephone number, and email
97address if applicable.
98(8) The physical address of the premises to be licensed.
99(9) Evidence that the applicant has the legal right to occupy and use the proposed location that
100complies with section 5007 of this division.
101(10) A premises diagram pursuant to section 5006 of this division.
102(11) A copy of a valid license, permit, or other authorization issued by a local jurisdiction, that
103enables the applicant to conduct commercial cannabis activity at the location requested for the
104temporary license. For purposes of this section, “other authorization” shall include, at a
105minimum, a written statement or reference that clearly indicates the local jurisdiction intended to
106grant permission for the commercial cannabis activity or to the person to conduct commercial
107cannabis activity at the premises. Upon receipt of the application, the Bureau shall contact the
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111applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction
112does not respond within 10 calendar days, the Bureau shall consider the authorization valid.
113(12) Attestation to the following statement: Under penalty of perjury, I hereby declare that the
114information contained within and submitted with the application is complete, true, and accurate. I
115understand that a misrepresentation of fact is cause for rejection of this application, denial of the
116license, or revocation of a license issued.
117(d) A temporary license is a conditional license that authorizes the licensee to engage in
118commercial cannabis activity as would be permitted under the privileges of a non-temporary
119license of the same type. A temporary licensee shall follow all applicable rules and regulations as
120would be required if the licensee held a non-temporary license of the same type.
121(e) A temporary license does not obligate the Bureau to issue a non-temporary license nor does
122the temporary license create a vested right in the holder to either an extension of the temporary
123license or to the granting of a subsequent non-temporary license.
124(f) A temporary license issued under this section shall be valid for 120 days from the effective
125date. No temporary license shall be effective prior to January 1, 2018.
126(g) A temporary license may be extended by the Bureau for additional 90-day periods if a
127complete application for an annual license has been submitted to the Bureau pursuant to section
1285002 of this division prior to the initial expiration date of the temporary license.
129(h) The Bureau shall not issue any temporary licenses or extensions after December 31, 2018.
130Any temporary license issued or extended with an expiration date after December 31, 2018 will
131be valid until it expires, but shall not be extended beyond the expiration date.
132Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and
13326050.1, Business and Professions Code.
134§ 5002. Annual License Application Requirements
135(a) Applications may be completed and submitted online at www.bcc.ca.gov or completed in hard
136copy and submitted by delivering a printed copy to the Bureau’s office(s).
137(b) Applicants who submit their applications online shall first register for a user account. To
138register for a user account, the applicant shall do all of the following:
139(1) Create a user name, password, and security question and answer;
140(2) Provide an email address; and
141(3) Provide the owner’s first and last name, primary phone number, social security number or
142individual taxpayer identification number, date of birth, and mailing address.
143(c) An application must be completed by an owner as defined by section 5003 of this division.
144An application must be submitted to the Bureau for each location and each license type. An
145application for an annual cannabis license includes the following:
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148(1) The name of the applicant. For applicants who are individuals, the applicant shall provide
149both the first and last name of the individual. For applicants who are business entities, the
150applicant shall provide the legal business name of the applicant.
151(2) If applicable, the business trade name (“DBA”) of the applicant.
152(3) The commercial cannabis license that the applicant is applying for, and whether the applicant
153is requesting that the license be designated as medicinal, adult-use, or both. Testing laboratory
154applicants do not have to designate medicinal or adult-use, as testing laboratory licenses allow
155the holder to test both medicinal and adult-use cannabis.
156(4) Payment of an application fee pursuant to section 5014 of this division.
157(5) Whether the owner is serving or has previously served in the military. Disclosure of military
158service is voluntary. An applicant who has served as an active duty member of the Armed Forces
159of the United States and was honorably discharged and who can provide evidence of such
160honorable discharge shall have his or her application expedited pursuant to Business and
161Professions Code section 115.4.
162(6) A list of the license types and the license numbers issued from the Bureau and all other state
163cannabis licensing authorities that the applicant holds, including the date the license was issued
164and the licensing authority that issued the license.
165(7) Whether the applicant has been denied a license or has had a license suspended or revoked by
166the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of
167license applied for, the name of the licensing authority that denied the application, and the date
168of denial.
169(8) The physical address of the premises. If the Bureau is unable to confirm that the address
170provided is valid, then the applicant shall provide a document that confirms the physical address
171of the premises. Such a document may include a utility bill, printed information from the county
172assessor, deed, or title.
173(9) The mailing address for the applicant, if different from the premises address.
174(10) The telephone number for the premises.
175(11) The website address and email address of the applicant’s business.
176(12) The business’ federal employer identification number.
177(13) Contact information for the applicant’s designated primary contact person including the
178name, title, phone number, and email address of the individual.
179(14) A description of the business organizational structure of the applicant, such as partnership or
180corporation.
181(15) The business-formation documents, which may include, but are not limited to, articles of
182incorporation, operating agreements, partnership agreements, and fictitious business name
183statements. The applicant shall also provide all documents filed with the California Secretary of
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186State, which may include, but are not limited to, articles of incorporation, certificates of stock,
187articles of organization, certificates of limited partnership, and statements of partnership
188authority. If the commercial cannabis business is held in trust, the applicant shall provide a copy
189of the trust.
190(16) A list of every fictitious business name the applicant is operating under including the
191address where the business is located.
192(17) A commercial cannabis business that is a foreign corporation shall include in its application
193the certificate of qualification issued by the Secretary of State of California.
194(18) The applicant shall supply the following financial information:
195(A) A list of funds belonging to the applicant held in savings, checking, or other accounts
196maintained by a financial institution. The applicant shall provide, for each account, the financial
197institution’s name, the financial institution’s address, account type, account number, and the
198amount of money in the account.
199(B) A list of loans made to the applicant. For each loan, the applicant shall provide the amount of
200the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name,
201address, and phone number of the lender.
202(C) A list of investments made into the applicant’s commercial cannabis business. For each
203investment, the applicant shall provide the amount of the investment, the date of the investment,
204term(s) of the investment, and the name, address, and phone number of the investor.
205(D) A list of all gifts of any kind given to the applicant for its use in conducting commercial
206cannabis activity. For each gift, the applicant shall provide the value of the gift or description of
207the gift, and the name, address, and phone number of the provider of the gift.
208(19) A complete list of every individual who has a financial interest in the commercial cannabis
209business as defined in section 5004 of this division, who is not an owner as defined in section
2105003(b) of this division.
211(20) A complete list of every owner of the applicant as defined in section 5003(b) of this
212division. Each individual named on this list shall submit the following information:
213(A) The full name of the owner.
214(B) The owner’s title within the applicant entity.
215(C) The owner’s date of birth and place of birth.
216(D) The owner’s social security number or individual taxpayer identification number.
217(E) The owner’s mailing address.
218(F) The owner’s telephone number. This may include a number for the owner’s home, business,
219or mobile telephone.
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223(G) The owner’s email address.
224(H) The owner’s current employer.
225(I) The percentage of the ownership interest held in the applicant entity by the owner.
226(J) Whether the owner has an ownership or a financial interest as defined in sections 5003 and
2275004, respectively, of this division in any other commercial cannabis business licensed under the
228Act.
229(K) A copy of the owner’s government-issued identification. Acceptable forms of identification
230are a document issued by a federal, state, county, or municipal government that includes the
231name, date of birth, height, gender, and picture of the person, such as a driver license.
232(L) A detailed description of the owner’s convictions. A conviction within the meaning of this
233section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
234Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must
235be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent
236non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300
237that did not involve alcohol, dangerous drugs, or controlled substances do not need to be
238included. For each conviction, the owner shall provide the following:
239(i) The date of conviction.
240(ii) Dates of incarceration, if applicable.
241(iii) Dates of probation, if applicable.
242(iv) Dates of parole, if applicable.
243(v) A detailed description of the offense for which the owner was convicted.
244(vi) A statement of rehabilitation for each conviction. The statement of rehabilitation is to be
245written by the owner and may contain evidence that the owner would like the Bureau to consider
246that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the
247statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation
248under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or
249professional counselors that contain valid contact information for the individual providing the
250reference.
251(M) If applicable, a detailed description of any administrative orders or civil judgements for
252violations of labor standards, any suspension of a commercial cannabis license, revocation of a
253commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a
254licensing authority, local agency, or state agency against the applicant or a business entity in
255which the applicant was an owner or officer within the three years immediately preceding the
256date of the application.
257(N) Attestation to the following statement: Under penalty of perjury, I hereby declare that the
258information contained within and submitted with the application is complete, true, and accurate. I
259
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262understand that a misrepresentation of fact is cause for rejection of this application, denial of the
263license, or revocation of a license issued.
264(21) Evidence that the applicant has the legal right to occupy and use the proposed location that
265complies with section 5007 of this division.
266(22) Evidence that the proposed premises is in compliance with Business and Professions Code
267section 26054(b) and section 5026 of this division.
268(23) For an applicant with 20 or more employees, the applicant shall attest that the applicant has
269entered into a labor peace agreement and will abide by the terms of the agreement. The applicant
270shall submit a copy of the page of the labor peace agreement that contains the signatures of the
271union representative and the applicant. For applicants who have not yet entered into a labor
272peace agreement, the applicant shall provide a notarized statement indicating that the applicant
273will enter into and abide by the terms of a labor peace agreement as soon as reasonably
274practicable after licensure.
275(24) The applicant shall provide a valid seller’s permit number issued by the California
276Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a
277seller’s permit, the applicant shall attest that the applicant is currently applying for a seller’s
278permit.
279(25) A diagram of the premises as required by section 5006 of this division.
280(26) Proof of a bond as required by section 5008 of this division.
281(27) For testing laboratory applications, the certificate(s) of accreditation as required by section
2825702 of this division, or the information required for a provisional license as required by section
2835703 of this division.
284(28) When an applicant provides a license, permit, or other authorization from the local
285jurisdiction where the licensed premises will be or is located, the Bureau will notify the
286applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction
287does not respond within 10 calendar days, the Bureau shall consider the authorization valid.
288(29) All licensee applications shall include a detailed description of the applicant’s operating
289procedures. Applicants shall use and submit to the Bureau the following forms which are
290incorporated by reference:
291(A) Transportation Procedures, Form BCC-LIC-015 (New 7/18)
292(B) Inventory Procedures, Form BCC-LIC-016 (New 7/18)
293(C) Non-Laboratory Quality Control Procedures, Form BCC-LIC-017 (New 7/18)
294(D) Security Procedures, Form BCC-LIC-018 (New 7/18)
295(E) Cannabis Waste Management Procedures, Form BCC-LIC-019 (New 7/18)
296(F) Delivery Procedures, Form BCC-LIC-020 (New 7/18)
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299(30) For applicants applying for a microbusiness license, the application shall include a detailed
300description of the applicant’s operating procedures required by this section for each cannabis
301activity the applicant intends to engage in.
302(31) For applicants applying for a testing laboratory license, in addition to the operating
303procedures required under subsection (c)(29) of this section, the standard application shall
304include the operating procedures required by chapter 6 of this division.
305(32) The limited waiver of sovereign immunity required by section 5009 of this division, if
306applicable.
307(33) Evidence of exemption from, or compliance with, the California Environmental Quality Act
308as required by section 5010 of this division.
309Authority: Sections 115.4 and 26013, Business and Professions Code. Reference: Sections 115.4,
310144, 26012, 26050, 26051.5, and 26055, Business and Professions Code.
311§ 5003. Designation of Owner
312(a) All applicants for a commercial cannabis license shall have at a minimum one individual who
313meets the definition of “owner” under Business and Professions Code section 26001(al) and who
314will submit the information required of owners under section 5002.
315(b) “Owner” means any of the following:
316(1) A person with an aggregate ownership interest of 20 percent or more in the person applying
317for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
318(2) The chief executive officer of a nonprofit or other entity.
319(3) A member of the board of directors of a nonprofit.
320(4) The trustee(s) and all persons that have control of the trust and/or the commercial cannabis
321business that is held in trust.
322(5) An individual who will be participating in the direction, control, or management of the
323person applying for a license. Such an individual includes any of the following:
324(A) A general partner of a commercial cannabis business that is organized as a partnership.
325(B) A non-member manager or managing member of a commercial cannabis business that is
326organized as a limited liability company.
327(C) An officer or director of a commercial cannabis business that is organized as a corporation.
328(D) Any individual who assumes responsibility for the license.
329(c) When an entity has an aggregate ownership interest of 20 percent or more in the commercial
330cannabis business, then the chief executive officer and/or members of the board of directors of
331the entity shall be considered owners.
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335Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, and
33626012, Business and Professions Code.
337§ 5004. Financial Interest in a Commercial Cannabis Business
338(a) A financial interest means an agreement to receive a portion of the profits of a commercial
339cannabis business, an investment into a commercial cannabis business, a loan provided to a
340commercial cannabis business, or any other equity interest in a commercial cannabis business
341except as provided in subsection (c). For the purpose of this section, an interest in a diversified
342mutual fund, blind trust, or similar instrument is not a financial interest.
343(b) The license application shall include the name, birthdate, and government-issued
344identification type and number for all individuals who have a financial interest in a commercial
345cannabis business but are not owners as defined in section 5003(b) of this division. These
346individuals shall not be required to submit the information required of owners under section
3475002(c)(20) of this division.
348(c) Notwithstanding subsection (b), the following persons are not required to be listed on an
349application for licensure under section 5002(c)(19) of this division:
350(1) A bank or financial institution whose interest constitutes a loan;
351(2) Persons whose only financial interest in the commercial cannabis business is through an
352interest in a diversified mutual fund, blind trust, or similar instrument;
353(3) Persons whose only financial interest is a security interest, lien, or encumbrance on property
354that will be used by the commercial cannabis business; and
355(4) Persons who hold a share of stock that is less than 5 percent of the total shares in a publicly
356traded company.
357Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
35826051.5, Business and Professions Code.
359§ 5005. Personnel Prohibited from Holding Licenses
360(a) A license authorized by the Act and issued by the Bureau may not be held by, or issued to,
361any person holding office in, or employed by, any agency of the State of California or any of its
362political subdivisions when the duties of such person have to do with the enforcement of the Act
363or any other penal provisions of law of this State prohibiting or regulating the sale, use,
364possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis goods.
365(b) This section applies to, but is not limited to, any person employed in the State of California
366Department of Justice as a peace officer, in any district attorney's office, in any city attorney’s
367office, in any sheriff's office, or in any local police department.
368(c) No person listed in subsection (a) or (b) of this section may have any ownership interest,
369directly or indirectly, in any business to be operated or conducted under a cannabis license.
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373(d) This section does not apply to any person who holds a license in the capacity of executor,
374administrator, or guardian.
375Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business
376and Professions Code.
377§ 5006. Premises Diagram
378(a) An applicant shall submit to the Bureau, with the application, a complete and detailed
379diagram of the proposed premises. The diagram shall be used by the Bureau to determine
380whether the premises meets the requirements under this division and the Act. The Bureau shall
381deny an application if the premises does not qualify for licensure pursuant to Business and
382Professions Code section 26057.
383(b) The diagram shall show the boundaries of the property and the proposed premises to be
384licensed, showing all boundaries, dimensions, entrances and exits, interior partitions, walls,
385rooms, windows, and doorways, and shall include a brief statement or description of the
386principal activity to be conducted therein.
387(c) The diagram shall show and identify commercial cannabis activities that will take place in
388each area of the premises, and identify limited-access areas. Commercial cannabis activities that
389shall be identified on the diagram include the following, if applicable to the business operations:
390storage, batch sampling, loading or unloading of shipments, packaging and labeling, customer
391sales, loading for deliveries, extraction, cultivation, and processing.
392(d) The diagram shall show where all cameras are located and assign a number to each camera
393for identification purposes.
394(e) The diagram shall be to scale.
395(f) The diagram shall not contain any highlighting and the markings on the diagram shall be in
396black-and-white print.
397(g) If the proposed premises consists of only a portion of a property, the diagram must be labeled
398indicating which part of the property is the proposed premises and what the remaining property
399is used for.
400(h) If the proposed premises consists of only a portion of a property that will contain two or more
401licensed premises, the diagram shall clearly show the designated entrances and walls under the
402exclusive control of the applicant for the premises, as well as the designated entrances and walls
403for each additional premises. The diagram shall also show all proposed common or shared areas
404of the property. Such areas may include lobbies, bathrooms, hallways, and breakrooms.
405(i) If the proposed premises will be a microbusiness that includes cultivation activities, in
406addition to the requirements of subsections (b) through (g) of this section, the premises diagram
407shall also include all the required information for a premises diagram under section 5501(d) of
408this division.
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412(j) If a proposed premises is located on only a portion of a property that also includes a
413residence, the diagram shall clearly show the designated buildings for the premises and the
414residence.
415Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and
41626051.5, Business and Professions Code.
417§ 5007. Landowner Approval
418(a) If the applicant is not the landowner of the real property upon which the premises is located,
419the applicant shall provide to the Bureau a document from the landowner or the landowner’s
420agent that states that the applicant has the right to occupy the property and acknowledges that the
421applicant may use the property for the commercial cannabis activity for which the applicant is
422applying for licensure. An applicant shall also provide a copy of the rental agreement, as
423applicable.
424(b) If the applicant is the landowner of the real property upon which the premises is located, the
425applicant shall provide to the Bureau a copy of the title or deed to the property.
426(c) If the landowner is a trust, the landowner approval shall come from the person that holds
427equitable title in the real property.
428Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business
429and Professions Code.
430§ 5007.1. Electronic Signature
431The Bureau will accept an electronic signature that complies with Civil Code section 1633.2(h)
432on any documents required to be submitted to the Bureau and that are submitted electronically,
433except documents that are required to be notarized.
434Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business
435and Professions Code.
436§ 5008. Bond
437An applicant shall provide proof of having obtained a surety bond of at least $5,000 payable to
438the State of California to ensure payment of the cost incurred for the destruction of cannabis
439goods necessitated by a violation of the Act or the regulations adopted thereunder. All bonds
440required under this regulation must be issued by a corporate surety licensed to transact surety
441business in the State of California and shall be issued on the Commercial Cannabis Licensee
442Bond form under Title 11, California Code of Regulations, Article 56, section 118.1.
443Authority: Section 26013, Business and Professions Code. Reference: Section 26051.5, Business
444and Professions Code.
445§ 5009. Limited Waiver of Sovereign Immunity
446(a) Any applicant or licensee that may fall within the scope of sovereign immunity that may be
447asserted by a federally recognized tribe or other sovereign entity must waive any sovereign
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450immunity defense that the applicant or licensee may have, may be asserted on its behalf, or may
451otherwise be asserted in any state administrative or judicial enforcement actions against the
452applicant or licensee, regardless of the form of relief sought, whether monetary or otherwise,
453under the state laws and regulations governing commercial cannabis activity. The applicant or
454licensee must submit a written waiver of sovereign immunity to the Bureau with any license
455application or renewal, which is valid for the period of the license. The written waiver shall
456include that the applicant or licensee has the lawful authority to enter into the waiver required by
457this section, the applicant or licensee hereby waives sovereign immunity, and the applicant or
458licensee agrees to do all of the following:
459(1) Provide documentation to the Bureau that establishes that the applicant or licensee has the
460lawful authority to enter into the waiver required by this section;
461(2) Conduct all commercial cannabis activity in full compliance with the state laws and
462regulations governing commercial cannabis activity, including submission to all enforcement
463provisions thereof;
464(3) Allow access as required by state statute or regulation by persons or entities charged with
465duties under the state laws and regulations governing commercial cannabis activity to any
466licensed premises or property at which the applicant conducts any commercial cannabis activity,
467including licensed premises or property where records of commercial cannabis activity are
468maintained by or for the applicant or licensee;
469(4) Provide any and all records, reports, and other documents as may be required under the state
470laws and regulations governing commercial cannabis activity;
471(5) Conduct commercial cannabis activity with other state commercial cannabis licensees only,
472unless otherwise specified by state law;
473(6) Meet all of the requirements for licensure under the state laws and regulations governing the
474conduct of commercial cannabis activity, and provide truthful and accurate documentation and
475other information of the applicant’s qualifications and suitability for licensure as may be
476requested; and
477(7) Submit to the personal and subject matter jurisdiction of the California courts to address any
478matter related to the waiver or the commercial cannabis application, license, or activity, and that
479all such matters and proceedings shall be governed, construed and enforced in accordance with
480California substantive and procedural law, including but not limited to the Medicinal and AdultUse Regulation and Safety Act and the Administrative Procedure Act.
481(b) The Bureau shall not approve an application for a state license if approval of the license
482would violate the provisions of any local ordinance or regulation adopted in accordance with
483Business and Professions Code section 26200 that is issued by the county or, if within a city, the
484city, within which the licensed premises is to be located.
485(c) Any applicant or licensee must immediately notify the Bureau of any changes that may
486materially affect the applicant or licensee’s compliance with subsection (a) of this section.
487
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489
490(d) Any failure by an applicant or licensee to comply with the requirements of subsections (b) or
491(c) of this section shall be a basis for denial of an application or renewal or discipline of a
492licensee.
493Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050
494and 26051.5, Business and Professions Code.
495§ 5010. Compliance with the California Environmental Quality Act (CEQA)
496(a) For purposes of complying with the California Environmental Quality Act (CEQA):
497(1) “Project” means the commercial cannabis activity or activities for which an annual license
498application is submitted to the Bureau and which requires the Bureau to engage in discretionary
499review.
500(2) “CEQA Guidelines” means the Guidelines for Implementation of the California
501Environmental Quality Act codified at Title 14, California Code of Regulations, sections 15000
502et seq.
503(3) “Environmental document” has the same meaning as section 15361 of the CEQA Guidelines.
504Environmental documents are prepared by the applicant or the local jurisdiction that analyze the
505commercial cannabis activity or activities and which assess whether the project has the potential
506to generate significant adverse environmental impacts.
507(b) An applicant may provide evidence of compliance with CEQA by submitting a copy of an
508environmental document previously certified or adopted by the local jurisdiction that evaluated
509the project.
510(c) If a previously certified or adopted environmental document is not available or does not exist,
511and if the Bureau does not determine that the project is exempt from CEQA as provided in
512section 5010.2 of this division, the applicant shall provide information to enable the Bureau to
513determine what type of environmental document should be prepared. Such information shall
514include at least the following:
515(1) The project location and surrounding land use, which shall:
516(A) Describe the project location including street address, city, county, Assessor’s Parcel
517Number, major cross streets, general plan designation, zoning designation, and any other
518physical description that clearly indicates the project site location;
519(B) Describe the surrounding land uses and zoning designations within one-half mile radius of
520the project and list of all abutting land uses.
521(C) Include a vicinity map and aerial image to show the project location;
522(D) Include photographs, not larger than 8 ½ by 11 inches, of the of existing visual conditions as
523observed from the publicly accessible vantage point(s);
524(2) A project description, which shall:
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526
527(A) Describe the activities included in the project application and identify any other commercial
528cannabis activity or activities occurring at the proposed premises;
529(B) Quantify the project size (total floor area of the project) in square feet and the lot size on
530which the project is located, in square feet;
531(C) List and describe any other related public agency permits and approvals, including any
532entitlements, required for this project, including those required by a planning commission, local
533air district, or regional water board;
534(D) Identify whether the applicant is licensed by, or has applied for licensure from, the California
535Department of Food and Agriculture or the State Department of Public Health to engage in
536commercial cannabis activity at the proposed premises;
537(E) Estimate the number of anticipated employees onsite, occupancy during operating hours,
538frequency of deliveries or shipments originating from and/or arriving to the project site, describe
539the anticipated transportation activity at the project site including the effects of the project related
540to public transit, bicycle, or pedestrian facilities;
541(F) Identify the location, type, and quantity of hazardous materials, as defined by Health and
542Safety Code section 25260, that are stored, used, or disposed of at the project site and a copy of
543the Hazardous Material Business Plan (HMBP) prepared for the proposed premises, if any;
544(G) Discuss whether the project will increase the quantity and type of solid waste, as defined by
545Public Resources Code section 40191, or hazardous waste, as defined by Health and Safety Code
546section 25117, that is generated or stored onsite.
547(H) Describe the project’s anticipated operational energy needs, identify the source of energy
548supplied for the project and the anticipated amount of energy per day, and explain whether the
549project will require an increase in energy demand and the need for additional energy resources.
550(3) The Bureau shall consider, for purposes of evaluating compliance with the CEQA, both the
551individual and cumulative impacts of all commercial cannabis activities occurring at the
552proposed premises.
553Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business
554and Professions Code.
555§ 5010.1. Review of Previously Prepared Environmental Documents Pursuant to CEQA
556(a) When the project has been evaluated in a previously certified or adopted environmental
557document, the Bureau will evaluate the project as a responsible agency as provided in section
55815096 of the CEQA Guidelines.
559(b) The Bureau may require subsequent environmental review if one or more of the events
560outlined in Public Resources Code section 21166 or section 15162 of the CEQA Guidelines
561occurs.
562Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business
563and Professions Code; Section 21166, Public Resources Code.
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565
566§5010.2 CEQA Exempt Projects.
567(a) An applicant may submit documentation to the Bureau demonstrating that the project is
568exempt from further environmental review pursuant to CEQA because the project falls within a
569class of projects determined not to have significant effect on the environment.
570(b) Documentation submitted to the Bureau in support of a determination that the project is
571exempt from further environmental review under CEQA shall, at minimum, include the
572following information:
573(1) Project location and surrounding land use, as required in section 5010 of this division;
574(2) Project description as required in section 5010 of this division; and
575(3) A written justification to support a determination that the project is categorically exempt. The
576written justification shall list the category and class the exemption falls under and shall explain
577how the project fits the specified exemption. The justification shall also demonstrate that none
578of the exceptions to categorical exemptions described in section 15300.2 of the CEQA
579Guidelines apply to the project.
580(c) Upon review, if the Bureau determines that the project is exempt from further CEQA review,
581and approves an application for annual licensure, the Bureau will file a Notice of Exemption with
582the State Clearinghouse within five working days after approval of the project as required by
583section 15062(c) of the CEQA Guidelines.
584Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business
585and Professions Code.
586§5010.3 Preparation of CEQA Environmental Documents by Applicant
587If the Bureau determines that a project does not qualify for an exemption, or that the
588circumstances described in Public Resources Code section 21166 and 15162 of the CEQA
589Guidelines require subsequent environmental review, the Bureau may charge the applicant for
590the costs of preparation for any supplemental environmental document as well as the Bureau’s
591costs for procedures to comply with CEQA, unless the Bureau specifies otherwise.
592Authority: Section 26013, Business and Professions Code. Reference: Section 26055, Business
593and Professions Code.
594§ 5011. Additional Information
595The Bureau may request additional information and documents from the applicant. The Bureau
596will provide the applicant a deadline for submittal of additional information. The Bureau will
597consider the complexity of the information requested and the ease with which the information
598can be obtained and transmitted to the Bureau by the applicant in determining the deadline.
599Authority: Section 26013, Business and Professions Code. Reference: Sections 26031, 26050
600and 26051.5, Business and Professions Code.
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602
603§ 5012. Incomplete Applications
604(a) If the Bureau determines that the application is incomplete, the Bureau may provide notice to
605the applicant in accordance with Business and Professions Code section 124.
606(b) If the Bureau issues a notice pursuant to Business and Professions Code section 124, an
607applicant has one year from the date of the notice in subsection (a) of this section to correct all
608deficiencies. If the applicant fails to correct the deficiencies within the one-year period and has
609not responded to the Bureau’s attempts to contact the applicant, the application shall be
610considered abandoned under Business and Professions Code section 142.
611(c) An applicant may reapply at any time following an abandoned application.
612(d) The Bureau will not refund application fees for an incomplete or abandoned application.
613Authority: Section 26013, Business and Professions Code. Reference: Sections 124, 142, 26050
614and 26051.5, Business and Professions Code.
615§ 5013. Withdrawal of Application
616(a) An applicant may withdraw an application at any time prior to the Bureau’s issuance of a
617license or denial of a license.
618(b) Requests to withdraw an application must be submitted to the Bureau in writing, dated, and
619signed by the applicant.
620(c) In accordance with Business and Professions Code section 118, withdrawal of an application
621shall not, unless the Bureau has consented in writing to such withdrawal, deprive the Bureau of
622its authority to institute or continue a proceeding against the applicant for the denial of the
623license upon any ground provided by law or to enter an order denying the license upon any such
624ground.
625(d) The Bureau will not refund application fees for a withdrawn application.
626(e) An applicant may reapply at any time following the withdrawal of an application and will be
627required to submit a new application and fee.
628Authority: Section 26013, Business and Professions Code. Reference: Sections 118 and 26050,
629Business and Professions Code.
630Article 3. Licensing
631§ 5014. Fees
632(a) The application fee for an annual license under section 5002 of this division, a cannabis event
633organizer license under section 5600 of this division, a temporary cannabis event license under
634section 5601 of this division for each event, and physical modification of the premises under
635section 5027 of this division shall be paid by an applicant or licensee as provided by this
636division. Applicants and licensees shall pay the appropriate fee as outlined in this section.
637
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639
640Application Fee Schedule
641License Type
642
643Fee Per
644Application
645$ 1,000
646
647All Annual Licenses
648Cannabis Event Organizer License
649
650$ 1,000
651
652Temporary Cannabis Event License
653
654$ 1,000
655
656Physical Modification of Premises
657
658$ 500
659
660(b) The annual licensing fee for each license shall be paid by an applicant or licensee. After the
661Bureau has approved the application. The Bureau shall not issue the license until the annual
662licensing fee has been paid.
663(c) In determining the appropriate license fee to be charged, each applicant or licensee shall
664estimate the maximum dollar value of its planned operation in terms of the value of the product
665expected to be tested, distributed, transported, retailed, cultivated and/or manufactured as
666determined in assessing the 15% excise tax pursuant to Revenue and Taxation Code section
66734011. The applicant or licensee will use the maximum dollar value of its planned operation to
668determine the appropriate fee as outlined in the following fee schedule.
669Annual License Fee Schedule
670License Type
671Testing Laboratory
672
673Distributor
674
675Distributor Transport Only
676Self-Distribution
677
678Distributor Transport Only
679
680Operations
681($ Max. Per License)
682up to 50 million
683
684Fee Per
685License
686$ 12,500
687
688greater than 50 million to 400 million
689
690$ 45,000
691
692greater than 400 million
693
694$ 90,000
695
696up to 3 million
697
698$ 1,200
699
700greater than 3 million to 12 million
701
702$ 10,000
703
704greater than 12 million to 60 million
705
706$ 50,000
707
708greater than 60 million to 120 million
709
710$100,000
711
712greater than 120 million
713
714$200,000
715
716up to 3 million
717
718$500
719
720greater than 3 million to 12 million
721
722$1,500
723
724greater than 12 million
725
726$4,000
727
728up to 3 million
729
730$1,000
731
732greater than 3 million to 12 million
733
734$2,800
735
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737
738License Type
739
740Operations
741($ Max. Per License)
742greater than 12 million
743
744Fee Per
745License
746$6,000
747
748Retailer
749
750up to 0.75 million
751
752$ 4,000
753
754greater than 0.75 million to 2.5 million
755
756$ 20,000
757
758greater than 2.5 million to 7.5 million
759
760$ 64,000
761
762greater than 7.5 million
763
764$ 120,000
765
766up to 0.75 million
767
768$ 10,000
769
770greater than 0.75 million to 2.5 million
771
772$ 30,000
773
774greater than 2.5 million to 7.5 million
775
776$ 100,000
777
778greater than 7.5 million
779
780$ 180,000
781
782Microbusiness
783
784(d) Notwithstanding the fees identified above, cannabis event organizers shall pay the
785appropriate fee as outlined in this section.
786
787Annual License Fee Schedule for Cannabis Event Organizers
788License Type
789
790Planned Operations
791(Number of Operations)
792
793Fee Per
794License
795
796Event Organizer
797
7981-10 events annually
799
800$ 5,000
801
802greater than 10 events annually
803
804$ 15,000
805
806(e) All fees are nonrefundable.
807Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5
808and 26180, Business and Professions Code.
809§ 5015. Payment of Fees
810(a) Any fee specified in this division shall be made to the Bureau of Cannabis Control by cash,
811check, money order, debit card, or credit card. Check and money order payments may be made
812out to the Bureau of Cannabis Control or the Department of Consumer Affairs.
813(b) If the fee is paid by debit or credit card:
814(1) The payment shall be made through the Bureau’s online licensing system; and
815(2) The applicant or licensee may be required to pay any associated processing or convenience
816fees to the third-party vendor processing the payment on behalf of the Bureau.
817
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819
820(c) Failure to pay the appropriate licensing fee is grounds for discipline. If the Bureau determines
821that the licensee paid an amount less than the appropriate licensing fee under section 5014 of this
822division, the licensee will be required to pay the balance of the appropriate fee and a penalty fee
823of 50 percent of the appropriate licensing fee. The Bureau in its discretion may waive the penalty
824fee.
825Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5
826and 26180, Business and Professions Code
827§ 5016. Priority Licensing
828(a) Priority licensing is available for annual licenses only, and is not applicable to any temporary
829or cannabis event organizer license.
830(b) To be eligible for priority licensing, an applicant must be able to demonstrate that the
831applicant operated in compliance with the Compassionate Use Act of 1996 and its implementing
832laws before September 1, 2016. Eligibility for priority licensing shall be established by one of
833the following methods:
834(1) The applicant is included on the list provided to the Bureau by the local jurisdiction in
835response to the Bureau’s request required by Business and Professions Code section 26054.2.
836(2) If the local jurisdiction does not provide a list to the Bureau or the applicant’s name does not
837appear on the list provided to the Bureau, the applicant shall provide to the Bureau evidence of
838operation in compliance with the Compassionate Use Act of 1996. Such evidence shall be in the
839form of a document issued or signed by the applicant’s local jurisdiction that contains the
840following:
841(A) Name of the applicant;
842(B) Address of the premises to be licensed;
843(C) License type(s) that the applicant is applying to the Bureau for;
844(D) Name of the local jurisdiction;
845(E) Name of the local jurisdiction office that is responsible for enforcing compliance with the
846Compassionate Use Act of 1996;
847(F) Name and contact information for the person authorized by the local jurisdiction to sign on
848its behalf;
849(G) Signature of the person authorized to sign on behalf of the local jurisdiction; and
850(H) A statement to the effect of: “The above–named party is currently conducting commercial
851cannabis activity in this jurisdiction and has been operating in compliance with the
852Compassionate Use Act of 1996 since before September 1, 2016.”
853(c) The Bureau shall not provide priority licensing pursuant to this section after December 31,
8542019.
855
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857
858Authority: Section 26013, Business and Professions Code. Reference: Section 26012, 26054.2,
859Business and Professions Code.
860§ 5017. Substantially Related Offenses and Criteria for Rehabilitation
861(a) For the purpose of license denial, convictions that are substantially related to the
862qualifications, functions, or duties of the business for which the application is made include:
863(1) A violent felony conviction, as specified in Penal Code section 667.5(c).
864(2) A serious felony conviction, as specified in Penal Code section 1192.7(c).
865(3) A felony conviction involving fraud, deceit, or embezzlement.
866(4) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling,
867giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling,
868offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance
869to a minor.
870(5) A felony conviction for drug trafficking with enhancements pursuant to Health and Safety
871Code section 11370.4 or 11379.8.
872(b) Except as provided in subsections (a)(4) and (a)(5) of this section and notwithstanding
873Chapter 2 (commencing with Section 480) of Division 1.5 of the Business and Professions Code,
874a prior conviction, where the sentence, including any term of probation, incarceration, or
875supervised release, is completed, for possession of, possession for sale, sale, manufacture,
876transportation, or cultivation of a controlled substance is not considered substantially related, and
877shall not be the sole ground for denial of a license. Conviction for any controlled substance
878felony subsequent to licensure shall be grounds for revocation of a license or denial of the
879renewal of a license.
880(c) When evaluating whether an applicant who has been convicted of a criminal offense that is
881substantially related to the qualifications, functions, or duties of the business for which the
882application is made should be issued a license, the Bureau shall consider the following criteria of
883rehabilitation:
884(1) The nature and severity of the act or offense;
885(2) Whether the person has a felony conviction based on possession or use of cannabis or
886cannabis products that would not be a felony if the person was convicted of the offense on the
887date of the person’s application;
888(3) The applicant’s criminal record as a whole;
889(4) Evidence of any act committed subsequent to the act or offense under consideration that
890could be considered grounds for denial, suspension, or revocation of a commercial cannabis
891activity license;
892(5) The time that has elapsed since commission of the act or offense;
893
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895
896(6) The extent to which the applicant has complied with any terms of parole, probation,
897restitution, or any other sanctions lawfully imposed against the applicant;
898(7) If applicable, evidence of dismissal under Penal Code sections 1203.4, 1203.4a, 1203.41 or
899another state’s similar law;
900(8) If applicable, a certificate of rehabilitation obtained under Penal Code section 4852.01 or
901another state’s similar law; and
902(9) Other evidence of rehabilitation submitted by the applicant.
903(d) If an applicant has been denied a license based on a conviction, the applicant may request a
904hearing pursuant to Business and Professions Code section 26058 to determine if the applicant
905should be issued a license.
906Authority: Section 26013, Business and Professions Code. Reference: Sections 482, 26012, and
90726057, Business and Professions Code.
908§ 5018. Additional Grounds for Denial of a License
909In addition to the reasons for denial in Business and Professions Code section 26057, a license
910may be denied for the following reasons:
911(a) The applicant’s proposed premises does not fully comply with standards set in regulation.
912(b) The applicant’s proposed or licensed premises is substantially different from the diagram of
913the proposed premises submitted by the applicant, in that the size, layout, location of common
914entryways, doorways, or passage ways, means of public entry or exit, or identification of limitedaccess areas within the licensed premises is not the same.
915(c) The applicant denied the Bureau access to the licensed premises.
916(d) The applicant made a material misrepresentation on the application.
917(e) The applicant did not correct the deficiencies within the application in accordance with
918sections 5002 and 5012 of this division.
919(f) The applicant has been denied a license, permit, or other authorization to engage in
920commercial cannabis activity by a state or local licensing authority.
921(g) The applicant’s proposed premises is not in compliance with Division 13 (commencing with
922Section 21000) of the Public Resources Code.
923(h) The applicant has failed to remit taxes as required under the Revenue and Taxation Code.
924(i) The applicant may be denied a license for any violations of law related to the operations of the
925commercial cannabis business or for any violations of law related to licensure.
926Authority: Section 26013, Business and Professions Code. Reference: Sections 480, 490, 26012,
92726030 and 26050, Business and Professions Code.
928
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930
931§ 5019. Excessive Concentration
932(a) In determining whether to grant, deny, or renew a license for a retail license or microbusiness
933license, the Bureau shall consider if an excessive concentration exists in the area where the
934licensee will operate. For the purposes of this section “excessive concentration” applies when
935either of the following conditions exist:
936(1) The ratio of licensees to population within the census tract or census division in which the
937applicant premises is located exceeds the ratio of licensees to population in the county in which
938the applicant premises is located, unless denial of the application would unduly limit the
939development of the legal market so as to perpetuate the illegal market for cannabis goods.
940(2) The ratio of retail licenses or microbusiness licenses to the population within the census tract,
941census division, or jurisdiction exceeds that allowable by local ordinance adopted under Business
942and Professions Code section 26200.
943(b) “Population Within the Census Tract or Census Division” as used in this section means the
944population as determined by the most recent United States decennial or special census. Such
945population determination shall not operate to prevent an applicant from establishing that an
946increase of resident population has occurred within the census tract or census division.
947(c) “Population in the County” as used in this section shall be determined by the most recent
948annual population estimate for California counties published by the Demographic Research Unit,
949State Department of Finance.
950(d) Beginning July 1, 2018, the Bureau shall calculate the ratios described in subsection (a) of
951this section once every six months using the most current available data. The Bureau’s
952consideration of whether to grant, deny, or renew a license shall be based upon the most recent
953ratio calculated by the Bureau on the date of the Bureau’s decision.
954(e) The existence of an excessive concentration shall not be considered in determining whether to
955grant, deny, or extend a temporary license under Business and Professions Code section 26050.1.
956(f) The applicant may provide reliable evidence establishing, to the satisfaction of the Bureau,
957that a denial of a license would unduly limit the development of the legal market so as to
958perpetuate the illegal market for cannabis goods.
959Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26051,
960Business and Professions Code
961§ 5020. Renewal of License
962(a) To timely renew a license, a completed license renewal form and annual license fee pursuant
963to section 5014 of this division shall be received by the Bureau from the licensee no earlier than
96460 calendar days before the expiration of the license and no later than 5:00 p.m. Pacific Time on
965the last business day before the expiration of the license if the renewal form is submitted to the
966Bureau at its office(s), or no later than 11:59 p.m. on the last business day before the expiration
967of the license if the renewal form is submitted to the Bureau through its electronic licensing
968
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970
971system. Failure to receive a notice for license renewal does not relieve a licensee of the
972obligation to renew all licenses as required.
973(b) In the event the license is not submitted for renewal prior to the expiration date, the licensee
974must not sell, transfer, transport, manufacture, test, or distribute any commercial cannabis goods
975until the license is renewed.
976(c) A licensee may submit a license renewal form up to 30 calendar days after the license
977expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable
978licensing fee required by subsection (a) of this section.
979(d) The license renewal form shall contain the following:
980(1) The name of the licensee. For licensees who are individuals, the applicant shall provide both
981the first and last name of the individual. For licensees who are business entities, the licensee shall
982provide the legal business name of the applicant.
983(2) The license number and expiration date.
984(3) The licensee’s address of record and licensed premises address.
985(4) Documentation demonstrating the maximum dollar value of the licensee’s operation for the
986current licensed period, such as a copy of the licensee’s state tax return filed with the California
987Department of Tax and Fee Administration.
988(5) An attestation that all information provided to the Bureau in the original application under
989section 5002 of this division or subsequent notification under sections 5023 and 5024 of this
990division is accurate and current.
991(6) A limited waiver of sovereign immunity pursuant to section 5009 of this division.
992Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26050,
993Business and Professions Code.
994§ 5021. Denial of License
995(a) The Bureau may deny an application for a new license or a renewal of a license for any
996reason specified in Business and Professions Code section 26057 and on any additional grounds
997including grounds for denial under section 5018 of this division, and grounds for discipline under
998the Act or this division.
999(b) Upon denial of an application for a license or renewal of a license, the Bureau shall notify the
1000applicant in writing of the reasons for denial, and the right to a hearing to contest the denial.
1001(c) The applicant may request a hearing to contest the denial by submitting a written request to
1002the Bureau.
1003(1) The written request for a hearing must be postmarked within 30 calendar days of service of
1004the notification of denial.
1005
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1007
1008(2) If the written request for a hearing is not received within the required timeframe, the
1009applicant’s right to a hearing is waived.
1010(3) Upon timely receipt of the written request for hearing, the Bureau shall set a date for hearing
1011to be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of
1012Division 3 of Title 2 of the Government Code.
1013Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and 26057
1014and 26058, Business and Professions Code.
1015§ 5022. Cancellation of License
1016(a) Every licensee who abandons, quits or who closes the licensed premises for a period
1017exceeding 30 consecutive calendar days, shall request in writing that the Bureau cancel the
1018license, within 10 business days after closing, quitting, or abandoning the licensed premises. The
1019Bureau may revoke the license of a licensee who fails to comply with the provisions of this
1020section. Upon cancellation or revocation of the license, the licensee shall not display and shall
1021destroy the license certificate.
1022(b) The Bureau may cancel a license at any time upon request by the licensee if there are no
1023outstanding fines or fees due to the Bureau and no disciplinary action is pending.
1024(c) If a licensee must close the licensed premises for a period exceeding 30 consecutive calendar
1025days to make renovations or repairs, the Bureau may allow the licensee to retain the license if the
1026licensee complies with section 5027 of this division.
1027(d) A person whose license has been cancelled or revoked pursuant to subsection (a) of this
1028section may submit to the Bureau a written request for the license to be reinstated. Any request
1029shall be submitted to the Bureau prior to the expiration date listed on the cancelled or revoked
1030license. The written request shall specify the reason the licensee failed to comply with subsection
1031(a) of this section and why the license should be reinstated returned. The Bureau in its discretion
1032may reinstate the license.
1033Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26050,
1034Business and Professions Code.
1035§ 5023. Business Modifications
1036Business modifications for any item contained in the application shall be made in accordance
1037with the following:
1038(a) Changes to standard operating procedures may be made without providing notification to the
1039Bureau. Licensees shall maintain a copy of all current and prior operating procedures as required
1040by section 5037 of this division.
1041(b) If at the time of licensure, a licensee employed less than 20 employees and later employs 20
1042or more employees, the licensee shall provide to the Bureau a document attesting that the
1043licensee has entered into a labor peace agreement and will abide by the terms of the agreement,
1044as soon as reasonably practicable once employing 20 or more employees. Once the licensee has
1045entered into the labor peace agreement, the licensee shall provide the Bureau with a copy of the
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1047
1048page of the labor peace agreement that contains the signatures of the union representative and the
1049applicant.
1050(c) Licenses are not transferrable. Changes in ownership shall be made in accordance with the
1051following:
1052(1) If one or more of the owners of a license change, a new license application and fee shall be
1053submitted to the Bureau within 10 business days of the effective date of the ownership change.
1054The business may continue to operate under the active license while the Bureau reviews the
1055application if at least one owner is not transferring his or her ownership interest and will remain
1056as an owner under the new license and ownership structure. If all owners will be transferring
1057their ownership interest, the business shall not operate under the new ownership structure until
1058the new license application has been approved by the Bureau.
1059(A) A change in ownership occurs when a new person meets the definition of owner in section
10605003 of this division.
1061(B) A change in ownership does not occur when one or more owners leave the business by
1062transferring their ownership interest to the other existing owner(s).
1063(2) In cases where one or more owners leave the business by transferring their ownership interest
1064to the other existing owner(s), the owner or owners that are transferring their interest shall
1065provide a signed statement to the Bureau confirming that they have transferred their interest.
1066(d) When there is a change in persons with financial interest(s) in the commercial cannabis
1067business that do not meet the requirements for a new license application under this section, the
1068licensee shall submit the information required by sections 5002(c)(19) and 5004 of this division
1069to the Bureau within 10 business days of the change.
1070(e) Licensees may request to add an A-designation or M-designation to their license by sending a
1071notification to the Bureau signed by at least one owner as defined in section 5003 of this
1072division. A licensee shall not operate under the requested designation until they have received
1073approval from the Bureau.
1074(f) Microbusiness licensees may add a commercial cannabis activity to their license or remove a
1075commercial cannabis activity from their license if doing so is consistent with the requirement set
1076forth in section 5500(a) of this division that licensees engage in at least three (3) commercial
1077cannabis activities. Licensees shall request the modification by completing a request to modify
1078the licensed premises pursuant to section 5027 of this division. A licensee shall not engage in a
1079new commercial cannabis activity until they have paid for the modification and received
1080approval from the Bureau.
1081(g) Licenses may not be transferred from one premises to another. Licensees shall not operate out
1082of a new premises until they have been issued a new license.
1083Authority: Section 26013, Business and Professions Code. Reference: Sections 136 and 26012,
1084Business and Professions Code.
1085
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1087
1088§ 5024. Death, Incapacity, or Insolvency of a Licensee
1089(a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or
1090other event rendering one or more owners’ incapable of performing the duties associated with the
1091license, the owner or owners’ successor in interest (e.g., appointed guardian, executor,
1092administrator, receiver, trustee, or assignee) shall notify the Bureau in writing, within 10
1093business days.
1094(b) To continue operations or cancel the existing license, the successor in interest shall submit to
1095the Bureau the following:
1096(1) The name of the successor in interest.
1097(2) The name of the owner(s) for which the successor in interest is succeeding and the license
1098number;
1099(3) The phone number, mailing address, and email address of the successor in interest; and
1100(4) Documentation demonstrating that the owner(s) is incapable of performing the duties
1101associated with the license such as a death certificate,- or a court order, and documentation
1102demonstrating that the person making the request is the owner or owners’ successor in interest
1103such as a court order appointing guardianship, receivership, or a will or trust agreement.
1104(c) The Bureau may give the successor in interest written approval to continue operations on the
1105licensed business premises for a period of time specified by the Bureau:
1106(1) If the successor in interest or another person has applied for a license from the Bureau for the
1107licensed premises and that application is under review;
1108(2) If the successor in interest needs additional time to destroy or sell cannabis goods; or
1109(3) At the discretion of the Bureau.
1110(d) The successor in interest is held subject to all terms and conditions under which a state
1111cannabis license is held pursuant to the Act.
1112(e) The approval creates no vested right to the issuance of a state cannabis license.
1113Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business
1114and Professions Code.
1115§ 5025. Premises
1116(a) Each license shall have a designated licensed premises, with a distinct street address and suite
1117number if applicable, for the licensee’s commercial cannabis activity. Each licensed premises
1118shall be subject to inspection by the Bureau.
1119(b) The Bureau may allow a licensee to conduct both adult-use and medicinal commercial
1120cannabis activity on the same licensed premises if all of the following criteria are met:
1121
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1123
1124(1) The licensee holds both an A-designation and an M-designation on the license for the
1125identical type of commercial cannabis activity; and
1126(2) The licensee only conducts one type of commercial cannabis activity on the licensed
1127premises.
1128(c) Licensed retailers and licensed microbusinesses shall only serve customers who are within
1129the licensed premises, or at a delivery address that meets the requirements of this division.
1130(1) The sale and delivery of cannabis goods shall not occur through a pass-out window or a slideout tray to the exterior of the licensed premises.
1131(2) Licensed retailers or licensed microbusinesses shall not operate as or with a drive-in or drivethrough at which cannabis goods are sold to persons within or about a motor vehicle.
1132(3) No cannabis goods shall be sold and/or delivered by any means or method to any person
1133within a motor vehicle.
1134(d) Alcoholic beverages as defined in Business and Professions Code section 23004 shall not be
1135stored or consumed on a licensed premises.
1136(e) Any licensed premises that is adjacent to another premises engaging in manufacturing or
1137cultivation shall be separated from those premises by walls, and any doors leading to the
1138cultivation or manufacturing premises shall remain closed.
1139(f) Cannabis shall not be dispersed in the air throughout the premises or throughout a portion of
1140the premises by an oil diffuser or any other vaporizing device that is intended to disperse the
1141vapor throughout the premises or throughout a portion of the premises. This section shall not be
1142interpreted to prohibit cannabis consumption on the premises of a retailer or microbusiness that
1143is conducted in accordance with Business and Professions Code section 26200(g).
1144(g) Notwithstanding subsection (c) of this section, an applicant or licensee may have a drive-in or
1145drive-through window only if, prior to June 1, 2018:
1146(1) The licensee or applicant received a license or permit from the local jurisdiction for a
1147premises including a drive-in or drive-through window which was disclosed on the local
1148application; or
1149(2) The licensee or applicant has submitted an application to the local jurisdiction for a license or
1150permit which, at the time of submission of the application, included information that a drive-in or
1151drive-through window was already part of, or proposed to be part of, the premises, and after June
11521, 2018, the local jurisdiction approves the premises with a drive-in or drive-through window.
1153Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26012,
1154and 26053, Business and Professions Code.
1155
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1157
1158§ 5026. Premises Location
1159(a) A premises licensed under this division shall not be located within a 600-foot radius of a
1160school providing instruction in kindergarten or any grades 1 through 12, day care center, or
1161youth center that is in existence at the time the license is issued.
1162(b) Notwithstanding subsection (a) of this section, if a local jurisdiction has issued a license or
1163permit to conduct commercial cannabis activity at a premises that is located within a 600-foot
1164radius of a school providing instruction in kindergarten or any grades 1 through 12, day care
1165center, or youth center, the Bureau may approve the premises for licensure if the following
1166conditions are met:
1167(1) The applicant submits a copy of a valid license or permit from the local jurisdiction with the
1168application for licensure; and
1169(2) The local jurisdiction notifies the Bureau that the applicant is in compliance with all
1170applicable local ordinances and regulations pursuant to Business and Professions Code section
117126055(g)(2)(C).
1172(c) A licensed premises shall not be in a location that requires persons to pass through a business
1173that sells alcohol or tobacco or a private residence to access the licensed premises, or that
1174requires persons to pass through the licensed premises to access a business that sells alcohol or
1175tobacco or a private residence.
1176(d) A licensed premises shall not be located within a private residence.
1177(e) Licensees shall ensure that the Bureau has immediate access to their licensed premises. If the
1178Bureau is denied access to a licensee’s premises for any reason, the licensee shall be held
1179responsible and subject to discipline. If the Bureau is denied access to one licensee’s premises
1180because of another licensee’s refusal to grant access when the only access to one licensed
1181premises is through another licensed premises, all licensees shall be held responsible and subject
1182to discipline.
1183Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26051.5,
118426054 and 26055, Business and Professions Code.
1185§ 5027. Physical Modification of Premises
1186(a) A licensee shall not, without the prior written approval of the Bureau, make a physical
1187change, alteration, or modification of the licensed premises that materially or substantially alters
1188the licensed premises or the use of the licensed premises from the premises diagram originally
1189filed with the license application. A licensee whose licensed premises is to be materially or
1190substantially changed, modified, or altered is responsible for filing a request for premises
1191modification with the Bureau.
1192(b) Material or substantial changes, alterations, or modifications requiring approval include, but
1193are not limited to:
1194
1195Bureau of Cannabis Control Regular Regulations Text Page 29 of 136
1196
1197(1) The removal, creation, or relocation of a common entryway, doorway, passage, or a means of
1198public entry or exit, when such common entryway, doorway, or passage alters or changes
1199limited-access areas within the licensed premises;
1200(2) The removal, creation, or relocation of a wall or barrier; or
1201(3) Changing the activities conducted in or the use of an area identified in the last premises
1202diagram provided to the Bureau.
1203(c) A licensee shall request approval of a physical change, alteration, or modification in writing,
1204and the request shall include:
1205(1) A new premises diagram that conforms to requirements in section 5006 of this division; and
1206(2) A fee pursuant to section 5014 of this division.
1207(d) A licensee shall provide additional documentation requested by the Bureau to evaluate the
1208licensee’s request to modify the licensed premises.
1209Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
121026055, Business and Professions Code
1211§ 5028. Subletting of Premises
1212A licensee shall not sublet any area designated as the licensed premises for the licensee’s
1213commercial cannabis activity.
1214Authority: Section 26013, Business and Professions Code. Reference: Sections ---26013 26012 and
121526070, Business and Professions Code
1216§ 5029. [reserved]
1217§ 5030. Licensee’s Responsibility for Acts of Employees and Agents
1218In construing and enforcing the provisions of the Act and the regulations in this division, the act,
1219omission, or failure of an agent, officer, representative, or other person acting for or employed by
1220a licensee, within the scope of his or her employment or office, shall in every case be deemed the
1221act, omission, or failure of the licensee.
1222Authority: Section 26013, Business and Professions Code. Reference: Sections 26031 and
122326110, Business and Professions Code.
1224§ 5031. Age Restriction
1225Employees or persons retained by a licensee to work within or on a licensed premises or to
1226handle cannabis goods shall be at least 21 years of age.
1227Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business
1228and Professions Code.
1229
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1231
1232§ 5032. Designated M and A Commercial Cannabis Activity
1233(a) All commercial cannabis activity shall be conducted between licensees. Retail licensees may
1234conduct commercial cannabis activity with customers in accordance with chapter 3 of this
1235division.
1236(b) Licensees may conduct business with other licensees irrespective of the M-designation or Adesignation on their licenses.
1237(c) Licensed distributors or licensed microbusinesses shall only transport and sell cannabis goods
1238designated as “For Medical Use Only,” pursuant to the requirements prescribed by the State
1239Department of Public Health in regulation, to M-designated retailers or M-designated
1240microbusinesses;
1241(d) Products designated as “For Medical Use Only,” pursuant to requirements prescribed by the
1242State Department of Public Health in regulation, shall only be sold to medicinal customers by Mdesignated retailers or M-designated microbusinesses.
1243Authority: Section 26013, Business and Professions Code. Reference: Sections 26001, 26013,
1244and 26053, Business and Professions Code.
1245§ 5033. Storage of Inventory
1246(a) All inventory stored on the licensed premises shall be secured in a limited-access area.
1247(b) A licensee shall not store cannabis goods outdoors.
1248(c) Employee break rooms, changing facilities, and bathrooms shall be separated from all storage
1249areas.
1250(d) Each location where cannabis goods are stored must be separately licensed.
1251Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
125226070, Business and Professions Code.
1253§ 5034. Significant Discrepancy in Inventory
1254(a) A significant discrepancy in inventory means a difference in actual inventory compared to
1255records pertaining to inventory of at least $5,000 or 2 percent of the average monthly sales of the
1256licensee, whichever is less.
1257(b) For the purposes of this section, average monthly sales shall be calculated by taking a per
1258month average of the total sales for the previous 6 months. If the licensee has not been in
1259operation for at least 6 months, only the months in which the licensee was operating shall be
1260used in determining average monthly sales.
1261(c) For the purposes of this section, the licensee’s acquisition price shall be used to determine the
1262value of cannabis goods in a licensee’s inventory.
1263Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1264and Professions Code.
1265Bureau of Cannabis Control Regular Regulations Text Page 31 of 136
1266
1267§ 5035. Notification of Criminal Acts, Civil Judgments, Violations of Labor Standards, and
1268Revocation of a Local License, Permit, or Other Authorization After Licensure
1269(a) A licensee shall ensure that the Bureau is notified in writing of a criminal conviction of any
1270owner, either by mail or electronic mail, within 48 hours of the conviction. The written
1271notification to the Bureau shall include the date of conviction, the court docket number, the name
1272of the court in which the licensee was convicted, and the specific offense(s) for which the
1273licensee was convicted.
1274(b) A licensee shall ensure that the Bureau is notified in writing of a civil penalty or judgment
1275rendered against the licensee or any owner in their individual capacity, either by mail or
1276electronic mail, within 48 hours of delivery of the verdict or entry of judgment, whichever is
1277sooner. The written notification shall include the date of verdict or entry of judgment, the court
1278docket number, the name of the court in which the matter was adjudicated, and a description of
1279the civil penalty or judgment rendered against the licensee.
1280(c) A licensee shall ensure that the Bureau is notified in writing of an administrative order or
1281civil judgement for violations of labor standards against the licensee or any owner in their
1282individual capacity, either by mail or electronic mail, within 48 hours of delivery of the order.
1283The written notification shall include the date of the order, the name of the agency issuing the
1284order, and a description of the administrative penalty or judgement rendered against the licensee.
1285(d) A licensee shall ensure that the Bureau is notified in writing of the revocation of a local
1286license, permit, or other authorization, either by mail or electronic mail within 48 hours of
1287receiving notice of the revocation. The written notification shall include the name of the local
1288agency involved, a written explanation of the proceeding or enforcement action, and the specific
1289violation(s) that led to revocation.
1290Authority: Section 26013, Business and Professions Code. Reference: Sections 26030 and
129126031, Business and Professions Code.
1292§ 5036. Notification of Theft, Loss, and Criminal Activity
1293(a) A licensee shall notify the Bureau and local law enforcement within 24 hours of discovery of
1294any of the following situations:
1295(1) The licensee discovers a significant discrepancy, as defined in section 5034 of this division,
1296in its inventory.
1297(2) The licensee discovers diversion, theft, loss, or any other criminal activity pertaining to the
1298operations of the licensee.
1299(3) The licensee discovers diversion, theft, loss, or any other criminal activity by an agent or
1300employee of the licensee pertaining to the operations of the licensee.
1301(4) The licensee discovers loss or unauthorized alteration of records related to cannabis goods,
1302customers, or the licensee’s employees or agents.
1303(5) The licensee discovers any other breach of security.
1304Bureau of Cannabis Control Regular Regulations Text Page 32 of 136
1305
1306(b) The notification to the Bureau pursuant to subsection (a) of this section shall be in writing
1307and include the date and time of occurrence of the theft, loss, or criminal activity, the name of
1308the local law enforcement agency that was notified, and a description of the incident including,
1309where applicable, the item(s) that were taken or lost.
1310Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1311and Professions Code.
1312§ 5037. Record Retention
1313(a) Each licensee shall keep and maintain the following records related to commercial cannabis
1314activity for at least seven years:
1315(1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax
1316records, and all records required by the California Department of Tax and Fee Administration
1317(formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698
1318and 4901.
1319(2) Personnel records, including each employee’s full name, social security or individual tax
1320payer identification number, date employment begins, and date of termination of employment if
1321applicable.
1322(3) Training records including, but not limited to, the content of the training provided and the
1323names of the employees that received the training.
1324(4) Contracts with other licensees regarding commercial cannabis activity.
1325(5) Permits, licenses, and other local authorizations to conduct the licensee’s commercial
1326cannabis activity.
1327(6) Security records, except for surveillance recordings required pursuant to section 5044 of this
1328division.
1329(7) Records relating to the composting or destruction of cannabis goods.
1330(8) Documentation for data or information entered into the track and trace system.
1331(9) All other documents prepared or executed by an owner or their employees or assignees in
1332connection with the licensed commercial cannabis business.
1333(b) All required records shall be prepared and retained in accordance with the following
1334conditions:
1335(1) Records shall be legible; and
1336(2) Records shall be stored in a secured area where the records are protected from debris;
1337moisture; contamination; hazardous waste; fire; and theft.
1338(c) The Bureau may make any examination of the books and records of any licensee as it deems
1339necessary to perform its duties under the Act.
1340
1341Bureau of Cannabis Control Regular Regulations Text Page 33 of 136
1342
1343(d) All records are subject to review by the Bureau anytime the licensee is exercising the
1344privileges of the license or at any other time as mutually agreed to by the Bureau and the
1345licensee. Prior notice by the Bureau to review records is not necessary. The Bureau may review
1346records outside of the licensee’s standard daily business hours.
1347(e) Records shall be kept in a manner that allows records to be produced for the Bureau
1348immediately upon request at the licensed premises in either hard copy or electronic form,
1349whichever the Bureau requests.
1350Authority: Section 26013, Business and Professions Code. Reference: Sections 26160 and
135126161, Business and Professions Code.
1352§ 5038. Disaster Relief
1353(a) If a licensee is unable to comply with any licensing requirements due to a disaster, the
1354licensee may notify the Bureau of this inability to comply and request relief from the specific
1355licensing requirement.
1356(b) The Bureau may exercise its discretion to provide temporary relief from specific regulatory
1357requirements in this division and from other licensing requirements when allowed by law.
1358(c) Temporary relief from specific licensing requirements shall be issued for a reasonable
1359amount of time in order to allow the licensee to recover from the disaster.
1360(d) The Bureau may require that certain conditions be followed in order for a licensee to receive
1361temporary relief from specific licensing requirements.
1362(e) A licensee shall not be subject to an enforcement action for a violation of a licensing
1363requirement in which the licensee has received temporary relief.
1364(f) For the purposes of this section, “disaster “means condition of extreme peril to the safety of
1365persons and property within the state or a county, city and county, or city caused by such
1366conditions as air pollution, fire, flood, storm, tidal wave, epidemic, riot, drought, terrorism,
1367sudden and severe energy shortage, plant or animal infestation or disease, Governor’s warning of
1368an earthquake or volcanic prediction, or an earthquake, or similar public calamity, other than
1369conditions resulting from a labor controversy, for which the Governor has proclaimed a state of
1370emergency in accordance with Government Code sections 8558 and 8625, or for which a local
1371governing body has proclaimed a local emergency in accordance with Government Code
1372sections 8558 and 8630.
1373(g) A licensed premises that has been vacated by a licensee due to a disaster shall not be deemed
1374to have been, abandoned, or quit under section 5022 of this division.
1375(h) Notwithstanding subsection (a) of this section, if a licensee needs to move cannabis goods
1376stored on the licensed premises to another location immediately to prevent loss, theft, or
1377degradation of the cannabis goods from the disaster, the licensee may move the cannabis goods
1378without obtaining prior approval from the Bureau if the following conditions are met:
1379(1) The cannabis goods are moved to a secure location where access to the cannabis goods can
1380be restricted to the licensee, its employees, and contractors;
1381Bureau of Cannabis Control Regular Regulations Text Page 34 of 136
1382
1383(2) The licensee notifies the Bureau in writing that the cannabis goods have been moved and that
1384the licensee is requesting relief from complying with specific licensing requirements pursuant to
1385subsection (a) of this section within 24 hours of moving the cannabis goods;
1386(3) The licensee agrees to grant the Bureau access to the location where the cannabis goods have
1387been moved to for inspection; and
1388(4) The licensee submits in writing to the Bureau within 10 business days of moving the cannabis
1389goods a request for temporary relief that clearly indicates what statutory and regulatory sections
1390relief is requested from, the time period for which the relief is requested, and the reasons relief is
1391needed for the specified amount of time.
1392Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business
1393and Professions Code.
1394Article 4. Posting and Advertising
1395§ 5039. License Posting Requirement
1396Upon issuance of any license, the licensee shall prominently display the license on the licensed
1397premises where it can be viewed by state and local agencies. If the licensed premises is open to
1398the public, the license shall be displayed in an area that is within plain sight of the public.
1399Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business
1400and Professions Code.
1401§ 5040. Advertising Placement
1402(a) Any advertising or marketing, as defined in Business and Professions Code section 26150,
1403that is placed in broadcast, cable, radio, print, and digital communications:
1404(1) Shall only be displayed after a licensee has obtained reliable up-to-date audience composition
1405data demonstrating that at least 71.6 percent of the audience viewing the advertising or
1406marketing is reasonably expected to be 21 years of age or older;
1407(2) Shall not use any depictions or images of minors under 18 years of age.
1408(3) Shall not contain the use of objects, such as toys, inflatables, movie characters, cartoon
1409characters, or include any other display, depiction, or image designed in any manner likely to be
1410appealing to minors under 18 years of age; and
1411(4) Shall not advertise free cannabis goods or giveaways of any type of products. This includes
1412promotions such as:
1413(A) Buy one product get one free;
1414(B) Free product with any donation; and
1415(C) Contests, sweepstakes, or raffles.
1416
1417Bureau of Cannabis Control Regular Regulations Text Page 35 of 136
1418
1419(b) In addition to the requirements for advertising and marketing in subsection (a) of this section,
1420all outdoor signs, including billboards, must be affixed to a building or permanent structure. All
1421outdoor advertising must be in compliance with the Outdoor Advertising Act, commencing with
1422section 5200 of the Business and Professions Code.
1423(c) For the purposes of this section, “reliable up-to-date audience composition data” means data
1424regarding the age and location demographics of the audience viewing a particular advertising or
1425marketing medium. “Reliable up-to-date audience composition data” does not include data from
1426the most recent United States decennial or special census, or the annual population estimate for
1427California counties published by the Demographic Research Unit, State Department of Finance.
1428(d) Immediately upon request, a licensee shall provide to the Bureau audience composition data
1429as required in subsection (a) of this section for advertising or marketing placed by the licensee.
1430(e) If the Bureau determines that audience composition data for advertising or marketing
1431provided by a licensee does not comply with the requirements of subsection (a) of this section, or
1432the licensee fails to provide audience composition data to the Bureau upon request, the licensee
1433shall remove the advertising or marketing placement in question.
1434(f) In construing and enforcing the advertising provisions of the Act and this division, any action,
1435omission, or failure of an advertising agent, representative, or contractor retained by the licensee,
1436shall in every case be deemed the act, omission, or failure of the licensee.
1437Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and
143826152, Business and Professions Code.
1439§ 5041. Age Confirmation in Advertising
1440(a) Prior to any advertising or marketing from the licensee involving direct, individualized
1441communication or dialogue, the licensee shall use age affirmation to verify that the recipient is
144221 years of age or older.
1443(b) For the purposes of this section, direct, individualized communication or dialogue may occur
1444through any form of communication, including in-person, telephone, physical mail, or electronic.
1445(c) A method of age verification is not necessary for a communication if the licensee can verify
1446that the licensee has previously had the intended recipient undergo a method of age affirmation
1447and the licensee is reasonably certain that the communication will only be received by the
1448intended recipient.
1449(d) A licensee shall use a method of age affirmation before having a potential customer added to
1450a mailing list, subscribe, or otherwise consent to receiving direct, individualized communication
1451or dialogue controlled by a licensee.
1452Authority: Section 26013, Business and Professions Code. Reference: Sections 26151 and
145326152, Business and Professions Code.
1454
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1456
1457Article 5. Security Measures
1458§ 5042. Limited-Access Areas
1459(a) Licensees shall ensure that only employees of the licensee and other authorized individuals
1460access the limited-access areas of the licensed premises.
1461(b) For the purpose of this section, authorized individuals include individuals employed by the
1462licensee as well as any outside vendors, contractors, or other individuals conducting business that
1463requires access to the limited-access areas.
1464(c) An individual who enters the limited-access area that is not employed by the licensee shall be
1465escorted by an employee of the licensee at all times while within the limited-access area.
1466(d) A licensee shall maintain a record of all authorized individuals that are not employees of the
1467licensee who enter the limited-access areas. The record shall include the name of the individual,
1468the company the individual works for, the reason the individual entered the limited-access area,
1469the date, and the times the individual entered and exited the limited-access area. These records
1470shall be made available to the Bureau immediately upon request.
1471(e) A licensee shall not receive consideration or compensation for permitting an individual to
1472enter the limited-access areas.
1473(f) Entrances to all limited-access areas shall have a solid door and a lock meeting the
1474requirements of section 5046 of this division. The door shall remain closed when not in use
1475during regular business hours.
1476Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1477and Professions Code.
1478§ 5043. Licensee Employee Badge Requirement
1479All agents, officers, or other persons acting for or employed by a licensee shall display a
1480laminated or plastic-coated identification badge issued by the licensee at all times while
1481engaging in commercial cannabis activity. The identification badge shall, at a minimum, include
1482the licensee’s “doing business as” name and license number, the employee’s first name, an
1483employee number exclusively assigned to that employee for identification purposes, and a color
1484photograph of the employee that clearly shows the full front of the employee’s face and that is at
1485least 1 inch in width and 1.5 inches in height.
1486Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1487and Professions Code.
1488§ 5044. Video Surveillance System
1489(a) Each licensed premises shall have a digital video surveillance system with a minimum
1490camera resolution of 1280 × 720 pixels.
1491(b) The surveillance-system storage device or the cameras shall be transmission control protocol
1492(TCP) capable of being accessed through the internet.
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1495(c) The video surveillance system shall at all times be able to effectively and clearly record
1496images of the area under surveillance.
1497(d) Each camera shall be permanently mounted and in a fixed location. Each camera shall be
1498placed in a location that allows the camera to clearly record activity occurring within 20 feet of
1499all points of entry and exit on the licensed premises, and allows for the clear and certain
1500identification of any person and activities in all areas required to be filmed under subsection (e)
1501of this section.
1502(e) Areas that shall be recorded on the video surveillance system include the following:
1503(1) Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded for
1504transportation, prepared, or moved within the licensed premises;
1505(2) Limited-access areas;
1506(3) Security rooms;
1507(4) Areas storing a surveillance-system storage device with at least one camera recording the
1508access points to the secured surveillance recording area; and
1509(5) Entrances and exits to the licensed premises, which shall be recorded from both indoor and
1510outdoor vantage points.
1511(f) Licensed retailers and licensed microbusiness shall also record point-of-sale areas and areas
1512where cannabis goods are displayed for sale on the video surveillance system. At each point-ofsale location, camera placement must allow for the recording of the facial features of any person
1513purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to
1514determine identity.
1515(g) Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per
1516second (FPS).
1517(h) The physical media or storage device on which surveillance recordings are stored shall be
1518secured in a manner to protect the recording from tampering or theft.
1519(i) Surveillance recordings shall be kept for a minimum of 90 days.
1520(j) Surveillance recordings are subject to inspection by the Bureau, and shall be kept in a manner
1521that allows the Bureau to view and obtain copies of the recordings at the licensed premises
1522immediately upon request. The licensee shall also send or otherwise provide copies of the
1523recordings to the Bureau upon request within the time specified by the Bureau.
1524(k) Recorded images shall clearly and accurately display the time and date. Time is to be
1525measured in accordance with the United States National Institute Standards and Technology
1526standards.
1527(l) The video surveillance system shall be equipped with a failure notification system that
1528provides notification to the licensee of any interruption or failure of the video surveillance
1529system or video surveillance-system storage device.
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1532(m) If multiple licensed premises are contained within the same building, a single video
1533surveillance system covering the entire building may be used by all of the licensees under the
1534following conditions:
1535(1) Each applicant or licensee shall disclose on their premises diagram where the surveillance
1536recordings are stored.
1537(2) Each applicant or licensee shall include in their security operating procedures, submitted with
1538the application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the
1539video surveillance system will be shared, including who is responsible for monitoring the video
1540footage and storing any video recordings.
1541(3) All licensees shall have immediate access to the surveillance recordings to produce them
1542pursuant to subsection (j) of this section.
1543(4) All licensees shall be held responsible and subject to discipline for any violations of the video
1544surveillance requirements.
1545Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1546and Professions Code.
1547§ 5045. Security Personnel
1548(a) A retail licensee or microbusiness licensee who is engaged in retail sale shall hire or contract
1549for security personnel who are at least 21 years of age to provide security services for the
1550licensed retail premises. All security personnel hired or contracted for by the licensee shall be
1551licensed by the Bureau of Security and Investigative Services and shall comply with Chapters
155211.4 and 11.5 of Division 3 of the Business and Professions Code.
1553(b) Notwithstanding subsection (a) of this section, a licensed non-storefront retailer or licensed
1554microbusiness who is not engaged in storefront retail sale is not required to hire or contract for
1555security personnel.
1556(c) If multiple licensed premises are contained within the same building, security personnel may
1557be shared by all of the licensees to cover the entire building under the following conditions:
1558(1) Each licensee shall include in their security operating procedures, submitted with the
1559application pursuant to section 5002(c)(29)(D) of this division, an explanation of how security
1560personnel will be shared, including who is responsible for employing or contracting the security
1561personnel.
1562(2) All licensees shall be held responsible and subject to discipline for any violations of the
1563security personnel requirements.
1564Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1565and Professions Code.
1566
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1569§ 5046. Locks
1570A licensee shall ensure that the limited-access areas described in section 5042 of this division
1571can be securely locked using commercial-grade, nonresidential door locks. A licensee shall also
1572use commercial-grade, nonresidential door locks on all points of entry and exit to the licensed
1573premises.
1574Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1575and Professions Code.
1576§ 5047. Alarm System
1577(a) A licensee shall maintain an alarm system as defined in Business and Professions Code
1578section 7590.1(n) at the licensed premises.
1579(b) A licensee shall ensure a licensed alarm company operator or one or more of its registered
1580alarm agents installs, maintains, monitors, and responds to the alarm system.
1581(c) Upon request, a licensee shall make available to the Bureau all information related to the
1582alarm system, monitoring, and alarm activity.
1583(d) If multiple licensed premises are contained within the same building, a single alarm system
1584covering the entire building may be used by all of the licensees under the following conditions:
1585(1) Each licensee shall include in their security operating procedures, submitted with the
1586application pursuant to section 5002(c)(29)(D) of this division, an explanation of how the alarm
1587system will be shared, including who is responsible for contracting with the alarm company.
1588(2) All licensees shall have access to and be able to provide the information under subsection (c)
1589of this section.
1590(3) All licensees shall be held responsible and subject to discipline for any violations of the alarm
1591system requirements.
1592Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1593and Professions Code.
1594Article 6. Track and Trace Requirements
1595§ 5048. Track and Trace System
1596(a) A licensee shall create and maintain an active and functional account within the track and
1597trace system prior to engaging in any commercial cannabis activity, including the purchase, sale,
1598test, packaging, transfer, transport, return, destruction, or disposal, of any cannabis goods.
1599(b) A licensee shall designate one individual owner as the track and trace system account
1600manager. The account manager may authorize additional owners or employees as track and trace
1601system users and shall ensure that each user is trained on the track and trace system prior to its
1602access or use.
1603
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1606(1) The account manager shall attend and successfully complete all required track and trace
1607system training, including any orientation and continuing education.
1608(2) If the account manager did not complete the required track and trace system training prior to
1609receiving their annual license, the account manager shall sign up for and complete state
1610mandated training, as prescribed by the Bureau, within five business days of license issuance.
1611(c) The account manager and each user shall be assigned a unique log-on, consisting of a
1612username and password. The account manager or each user accessing the track and trace system
1613shall only do so under his or her assigned log-on, and shall not use or access a log-on of any
1614other individual. No account manager or user shall share or transfer his or her log-on, username,
1615or password, to be used by any other individual for any reason.
1616(d) The account manager shall maintain a complete, accurate, and up-to-date list of all track and
1617trace system users, consisting of their full names and usernames.
1618(e) A licensee shall monitor all compliance notifications from the track and trace system, and
1619timely resolve the issues detailed in the compliance notification.
1620(1) A licensee shall keep a record, independent of the track and trace system, of all compliance
1621notifications received from the track and trace system, and how and when compliance was
1622achieved.
1623(2) If a licensee is unable to resolve a compliance notification within three business days of
1624receiving the notification, the licensee shall notify the Bureau immediately.
1625(f) A licensee is accountable for all actions its owners or employees take while logged into or
1626using the track and trace system, or otherwise while conducting track and trace activities.
1627Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070,
162826160 and 26161, Business and Professions Code.
1629§ 5049. Track and Trace Reporting
1630(a) A licensee shall record in the track and trace system all commercial cannabis activity,
1631including:
1632(1) Packaging of cannabis goods.
1633(2) Sale and transfer of cannabis goods.
1634(3) Transportation of cannabis goods to a licensee.
1635(4) Receipt of cannabis goods.
1636(5) Return of cannabis goods.
1637(6) Destruction and disposal of cannabis goods.
1638(7) Laboratory testing and results.
1639
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1642(8) Any other activity as required pursuant to this division, or by any other licensing authority.
1643(b) The following information shall be recorded for each activity entered in the track and trace
1644system:
1645(1) Name and type of the cannabis goods.
1646(2) Unique identifier of the cannabis goods.
1647(3) Amount of the cannabis goods, by weight or count, and total sale price of the cannabis goods,
1648as applicable.
1649(4) Date and time of the activity or transaction.
1650(5) Name and license number of other licensees involved in the activity or transaction.
1651(6) If the cannabis goods are being transported:
1652(A) The licensee shall transport pursuant to a shipping manifest generated through the track and
1653trace system, that includes items (1) through (5) of this subsection, as well as:
1654(i) The name, license number, and premises address of the originating licensee.
1655(ii) The name, license number, and licensed premises address of the licensee transporting the
1656cannabis goods.
1657(iii) The name, license number, and licensed premises address of the destination licensee
1658receiving the cannabis goods into inventory or storage.
1659(iv) The date and time of departure from the licensed premises and approximate date and time of
1660departure from each subsequent licensed premises, if any.
1661(v) Arrival date and estimated time of arrival at each licensed premises.
1662(vi) Driver license number of the personnel transporting the cannabis goods, and the make,
1663model, and license plate number of the vehicle used for transport.
1664(B) Upon pick-up or receipt of cannabis goods for transport, storage, or inventory, a licensee
1665shall ensure that the cannabis goods received are as described in the shipping manifest, and shall
1666record acceptance and acknowledgment of the cannabis goods in the track and trace system.
1667(C) If there are any discrepancies between the type or quantity specified in the shipping manifest
1668and the type or quantity received by the licensee, the licensee shall record and document the
1669discrepancy in the track and trace system and in any relevant business record.
1670(7) If cannabis goods are being destroyed or disposed of, the licensee shall record in the track
1671and trace system the following additional information:
1672(A) The name of the employee performing the destruction or disposal.
1673(B) The reason for destruction or disposal.
1674
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1677(C) The name of the entity being used to collect and process cannabis waste, pursuant to section
16785055 of this division.
1679(8) Description for any adjustments made in the track and trace system, including, but not limited
1680to:
1681(A) Spoilage or fouling of the cannabis goods.
1682(B) Any event resulting in exposure or compromise of the cannabis goods.
1683(9) Any other information as required pursuant to this division, or by any other applicable
1684licensing authorities.
1685(c) Unless otherwise specified, all transactions must be entered into the track and trace system
1686within 24 hours of occurrence.
1687(d) Licensees shall only enter and record complete and accurate information into the track and
1688trace system, and shall correct any known errors entered into the track and trace system
1689immediately upon discovery.
1690Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070,
1691and 26160, Business and Professions Code.
1692§ 5050. Loss of Access
1693(a) If at any point a licensee loses access to the track and trace system for any reason, the
1694licensee shall prepare and maintain comprehensive records detailing all commercial cannabis
1695activities that were conducted during the loss of access.
1696(b) The licensee shall both document and notify the Bureau immediately:
1697(1) When access to the system is lost;
1698(2) When access to the system is restored; and
1699(3) The cause for the loss of access.
1700(c) Once access is restored, all commercial cannabis activity that occurred during the loss of
1701access shall be entered into the track and trace system within three business days of access being
1702restored.
1703(d) A licensee shall not transport, transfer, receive, or deliver any cannabis goods until such time
1704as access is restored and all information recorded in the track and trace system.
1705Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070,
1706and 26160, Business and Professions Code.
1707
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1710§ 5051. Track and Trace System Reconciliation
1711(a) In addition to other inventory reconciliation requirements under this division, a licensee shall
1712reconcile the physical inventory of cannabis goods at the licensed premises with the records in
1713the track and trace database at least once every 14 calendar days.
1714(b) If a licensee finds a discrepancy between its physical inventory and the track and trace system
1715database, the licensee shall conduct an audit, and notify the Bureau of any reportable activity
1716pursuant to section 5036 of this division.
1717Authority: Section 26013, Business and Professions Code. Reference: Sections 26067, 26070,
1718and 26160, Business and Professions Code.
1719§ 5052. Temporary Licenses; Licensees in Operation at Time of Licensure
1720(a) A licensee operating under a temporary license issued pursuant to section 5001 of this
1721division is not required to record commercial cannabis activity in the track and trace system as
1722otherwise required by this article.
1723(b) Temporary licensees shall track and record all cannabis commercial activities and
1724information required pursuant to this division and any other provision of law, at a minimum, on
1725paper receipts, invoices, or manifests.
1726(c) Any commercial cannabis activity conducted between annual license holders shall be
1727recorded in the track and trace system.
1728(d) Any licensee in operation at the time the annual license is issued shall enter all inventory into
1729the track and trace system no later than 30 calendar days after the track and trace system account
1730manager attends the training required pursuant to section 5048 of this division.
1731Authority: Section 26013, Business and Professions Code. Reference: Sections 26050.1, 26067,
173226070, and 26160, Business and Professions Code.
1733Article 7. Returns and Destruction
1734§ 5052.1. Acceptance of Shipments
1735(a) Licensees shall accept or reject in whole shipments of cannabis goods.
1736(b) Notwithstanding subsection (a) of this section, if a licensee receives a shipment containing
1737cannabis goods that differ from those listed on the sales invoice or receipt, the licensee shall
1738reject the portion of the shipment that is not accurately reflected on the sales invoice or receipt.
1739Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26070
1740and 26161, Business and Professions Code.
1741§ 5053. Returns Between Licensees
1742(a) If a licensee discovers that a manufactured cannabis good that was purchased from another
1743licensee is defective, the purchasing licensee may return the cannabis good to the selling licensee
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1746only in exchange for a non-defective version of the same type of cannabis good or in exchange
1747for a cannabis good of equal value.
1748(b) Except as provided in subsection (a) of this section, a licensee shall not return cannabis goods
1749purchased from another licensee.
1750Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
175126070, Business and Professions Code.
1752§ 5054. Destruction of Cannabis Products Prior to Disposal
1753(a) Licensees shall not dispose of cannabis goods, unless disposed of as cannabis waste, defined
1754under section 5000(e) of this division.
1755(b) In order to be disposed of as cannabis waste, cannabis goods must first be destroyed, which at
1756a minimum, includes removing the cannabis goods from any packaging and rendering it
1757unrecognizable and unusable.
1758Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
175926070, Business and Professions Code.
1760§ 5055. Cannabis Waste Management
1761
1762- unless in accordance
1763(a) A licensee may not sell, transfer, donate, or give away cannabis waste.,
1764with this section.
1765(b) Licensees shall comply with all applicable waste management laws including, but not limited
1766to, Division 30 of the Public Resources Code.
1767(c) For the purpose of this section, the following shall apply:
1768(1) A “third-party waste hauler” means any of the following:
1769(A) The local agency;
1770(B) A waste hauler franchised or contracted by the local agency; or
1771(C) A private waste hauler permitted by the local agency.
1772(2) A “solid waste facility” means any of the following:
1773(A) A manned, fully permitted solid waste landfill or transformation facility;
1774(B) A manned, fully permitted composting facility or manned composting operation;
1775(C) A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion
1776operation;
1777(D) A manned, fully permitted transfer processing facility or manned transfer/processing
1778operation; or
1779(E) A manned, fully permitted chip and grind facility or manned chip and grind operation.
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1782(3) “Secured waste receptacle” or “secured area” means a receptacle area where physical access
1783is restricted to the licensee, its employees, and third-party waste hauler, and public access, or any
1784other access, to the designated receptacle or area is prohibited.
1785(d) A licensee shall dispose of cannabis waste in a secured waste receptacle or in a secured area
1786on the licensed premises, until it can be collected by the licensee or a third-party waste hauler,
1787and processed at a solid waste facility.
1788(e) A licensee shall have a cannabis waste management plan in place that identifies one or more
1789of the following methods for managing cannabis waste:
1790(1) If licensee is composting cannabis waste on a licensed premises, a licensee shall do so in
1791compliance with title 14, California Code of Regulations, Chapter 3.1 (commencing with Section
179217850).
1793(2) If a licensee is self-hauling cannabis waste to a solid waste facility, a licensee shall do all of
1794the following:
1795(A) Obtain from the solid waste facility for each delivery of cannabis waste, a copy of a certified
1796weight ticket or receipt documenting delivery.
1797(B) Only the licensee or its employees may transport self-hauled cannabis waste.
1798(3) If the licensee is using a third-party waste hauler to collect and process cannabis waste, a
1799licensee shall do all the following:
1800(A) A licensee shall maintain the following information for any third-party waste hauler who will
1801collect and process the licensee’s cannabis waste and shall provide the information to the Bureau
1802immediately upon request:
1803(i) Name of local agency providing waste hauler services, if applicable;
1804(ii) Company name and business address, of the waste hauler franchised or contracted by the
1805local agency, or private waste hauler permitted by the local agency, if applicable; and
1806(iii) Name and phone number of the primary contact person at the company.
1807(B) Obtain documentation from the entity hauling the waste that indicates the date and time of
1808each collection of cannabis waste at the licensed premises; and
1809(C) Obtain a copy of the certified weight ticket or other documentation prepared by the entity
1810hauling the waste that confirms receipt of the cannabis waste at the solid waste facility.
1811Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1812and Professions Code.
1813
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1816Chapter 2. DISTRIBUTORS
1817§ 5300. Distribution Activities
1818A licensed distributor shall distribute only cannabis goods, cannabis accessories, and licensees’
1819branded merchandise or promotional materials.
1820Authority: Sections 26013, Business and Professions Code. Reference: Section 26070, Business
1821and Professions Code.
1822§ 5301. Storage Services
1823(a) A licensed distributor may provide storage services, including storage-only services that are
1824unrelated to the quality assurance and laboratory testing processes, to a licensed cultivator,
1825licensed manufacturer, licensed microbusiness, licensed retailer, or another licensed distributor.
1826(b) A licensed distributor may provide storage services to other licensees for only cannabis
1827goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.
1828(c) Notwithstanding subsection (b) of this section, a licensed distributor shall not store live plants
1829on the licensed premises.
1830Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
1831and Professions Code.
1832§ 5302. Storage of Batches for Testing
1833(a) A licensed distributor shall ensure that all cannabis goods batches are stored separately and
1834distinctly from other cannabis goods batches on the licensed distributor’s premises.
1835(b) A licensed distributor shall ensure a label with the following information is physically
1836attached to each container of each batch:
1837(1) The name and license number of the manufacturer or cultivator who provided the batch;
1838(2) The date of entry into the licensed distributor’s storage area;
1839(3) The unique identifiers and batch number associated with the batch;
1840(4) A description of the cannabis goods with enough detail to easily identify the batch;
1841(5) The weight of or quantity of units in the batch; and
1842(6) The best-by, sell-by, or expiration date of the batch, if any.
1843Authority: Section 26013, Business and Professions Code. Reference: Sections 26110 and
184426120, Business and Professions Code.
1845§ 5303. Packaging and Labeling
1846(a) A licensed distributor may package, re-package, label, and re-label cannabis, including prerolls, for retail sale.
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1849(b) A licensed distributor shall not package, re-package, label, or re-label manufactured cannabis
1850products except when the licensed distributor also holds a manufacturing license and is
1851packaging, re-packaging, labeling, or re-labeling its own manufactured cannabis products at its
1852licensed manufacturing premises.
1853(c) Notwithstanding subsection (b) of this section, licensed distributors may also re-label the
1854package with the accurate amount of cannabinoids and terpenoids if laboratory testing
1855determines that the manufactured product is labeled with incorrect amounts. Prior to re-labeling
1856the package, the licensed distributor shall send the Certificate of Analysis from the licensed
1857testing laboratory to the licensed manufacturer that manufactured the cannabis goods.
1858Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
185926120, Business and Professions Code
1860§5303.1. Net Weight of Dried Flower
1861For purposes of this division, the net weight on any package of dried flower shall not be
1862considered inaccurate if the actual weight is within plus or minus 2.5% of the labeled weight.
1863Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
186426120, Business and Professions Code
1865§ 5304. Testing Arrangements
1866After taking physical possession of a cannabis goods batch, the licensed distributor shall contact
1867a testing laboratory and arrange for a laboratory employee to come to the licensed distributor’s
1868licensed premises to select a representative sample for laboratory testing.
1869Authority: Section 26013, Business and Professions Code. Reference: Sections 26104, 26110,
1870Business and Professions Code.
1871§ 5305. Testing Sample
1872(a) The licensed distributor shall ensure that the batch size from which the sample is taken meets
1873the requirements of this division.
1874(b) A licensed distributor or an employee of the licensed distributor shall be physically present to
1875observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure
1876that the increments are taken from throughout the batch.
1877(c) The sampling shall be video recorded with the batch number stated verbally or in writing on
1878the video at the beginning of the video and a visible time and date indication on the video
1879recording footage. The video recordings shall be maintained for 90 days by the licensed
1880distributor.
1881(d) After the sample has been selected, both the licensed distributor and the laboratory employee
1882shall sign and date the chain of custody form pursuant to section 5706 of this division, attesting
1883to the sample selection having occurred.
1884
1885Bureau of Cannabis Control Regular Regulations Text Page 48 of 136
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1887(e) A licensed distributor shall not assist the laboratory employee nor touch the cannabis goods
1888or the sampling equipment while the laboratory employee is obtaining the sample.
1889Authority: Section 26013, Business and Professions Code. Reference: Sections 26104 and
189026110, Business and Professions Code.
1891§ 5306. Laboratory Testing Results
1892(a) A sample “passes” a laboratory test when the sample meets specifications in chapter 6 of this
1893division.
1894(b) When a batch from a manufactured or harvest batch passes, the cannabis goods may be
1895transported to one or more licensed retailers, licensed distributors, or licensed microbusinesses.
1896(c) A sample “fails” a laboratory test when the sample does not meet specifications in chapter 6
1897of this division.
1898(d) If a failed sample was collected from a batch and the batch could be remediated pursuant to
1899section 5727 of this division, a licensed distributor may transport or arrange for the
1900transportation of the batch to a manufacturer for remediation.
1901(e) A licensed distributor shall destroy a batch that failed laboratory testing and cannot be
1902remediated pursuant to section 5727 of this division.
1903Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26100,
190426104 and 26110, Business and Professions Code.
1905§ 5307. Quality-Assurance Review
1906When a licensed distributor receives a certificate of analysis from the licensed testing laboratory
1907or upon transfer from another licensed distributor stating that the sample meets specifications
1908required by law, the distributor shall ensure the following before transporting the cannabis goods
1909to one or more licensed retailers or licensed microbusinesses:
1910(a) The certificate of analysis for the required testing under section 5714 of this division that the
1911licensed distributor received from the testing laboratory is the certificate of analysis that
1912corresponds to the batch;
1913(b) The label on the cannabis goods is consistent with the certificate of analysis regarding
1914cannabinoid content and contaminants required to be listed by law;
1915(c) The packaging and labeling of the cannabis goods complies with Business and Professions
1916Code Section 26120 and all applicable regulations within this division as well as California Code
1917of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13, except cannabis goods
1918are not required to be labeled or otherwise identified as medicinal products prior to retail sale
1919unless the cannabis goods must be labeled as such pursuant to the requirements prescribed by the
1920State Department of Public Health in regulation;
1921(d) The weight or count of the cannabis batch comports with that in the track and trace system. A
1922licensed distributor shall use scales as required by the Act; and
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1924
1925(e) All events prior to receipt have been entered into the track and trace system.
1926Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26110
1927and 26120, Business and Professions Code.
1928§ 5308. Insurance Requirements
1929(a) An applicant for a distributor license shall provide the Bureau with a certificate of insurance
1930that shows the types of insurance coverage and minimum amounts that have been secured as
1931required by this section, and documentation establishing compliance with subsection (d) of this
1932section.
1933(b) A distributor licensee shall at all times carry and maintain commercial general liability
1934insurance in the aggregate in an amount no less than $2,000,000 and in an amount no less than
1935$1,000,000 for each loss.
1936(c) A distributor licensee shall maintain the insurance required in subsection (b) of this section
1937from an insurance company that is:
1938(1) A non-admitted insurer that meets the requirements of Insurance Code section 1765.1 or
19391765.2, and the insurance is placed pursuant to Insurance Code section 1763 and through a
1940surplus line broker licensed under Insurance Code section 1765;
1941(2) An insurer qualified to do business in California by the Secretary of State and authorized by
1942the Insurance Commissioner to write the liability and property classes of insurance as defined by
1943Insurance Code sections 102, 103, 107, 114, 108, and 120; or
1944(3) A registered risk retention group compliant with the California Risk Retention Act of 1991.
1945(See California Insurance Code sections 125-140.)
1946(d) Admitted insurers and risk retention groups must show proof of capitalization in the amount
1947of at least $10,000,000.
1948(e) A distributor licensee shall notify the Bureau in writing within 10 calendar days of a lapse in
1949insurance.
1950Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
195126051.5, Business and Professions Code.
1952§ 5309. Inventory Reconciliation
1953(a) A licensed distributor shall reconcile all inventories of cannabis goods at least once every 14
1954calendar days.
1955(b) A licensed distributor shall keep an inventory log containing the following information for
1956each batch:
1957(1) The name and license number of the manufacturer or cultivator who provided the batch;
1958(2) The date of entry into the licensed distributor’s storage area;
1959
1960Bureau of Cannabis Control Regular Regulations Text Page 50 of 136
1961
1962(3) The unique identifiers and batch number associated with the batch;
1963(4) A description of the cannabis goods with enough detail to easily identify the batch;
1964(5) The weight of or quantity of units in the batch;
1965(6) The best-by, sell-by, or expiration date of the batch, if any; and
1966(7) Where on the licensed premises the batch is kept.
1967(c) If a licensed distributor finds a discrepancy between the inventory of stock and the inventory
1968log or track and trace system that is outside of normal weight loss caused by moisture loss, the
1969licensed distributor shall commence a full audit of the batch in which the discrepancy was found.
1970Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
197126160, Business and Professions Code.
1972§ 5310. Records
1973In addition to the records required by section 5037 of this division, a licensed distributor shall
1974maintain the following records:
1975(a) Records relating to branding, packaging and labeling;
1976(b) Inventory logs and records;
1977(c) Transportation bills of lading and shipping manifests for completed transports and for
1978cannabis goods in transit;
1979(d) Vehicle and trailer ownership records;
1980(e) Quality-assurance records;
1981(f) Records relating to destruction of cannabis goods;
1982(g) Laboratory-testing records;
1983(h) Warehouse receipts;
1984(i) Records relating to tax payments collected and paid under Revenue and Taxation Code
1985sections 34011 and 34012.
1986Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
1987and Professions Code.
1988§ 5311. Requirements for the Transportation of Cannabis Goods
1989The following requirements apply when transporting cannabis goods between licensees or
1990licensed premises:
1991(a) Transportation shall only be conducted by persons holding a distributor license under the Act,
1992or employees of those persons.
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1994
1995(b) Prior to transporting any cannabis goods, the licensed distributor shall have a completed sales
1996invoice or receipt that meets the requirements of Business and Professions Code section 26161.
1997The licensed distributor shall only transport cannabis goods listed on the sales invoice or receipt.
1998The sales invoice or receipt may not be altered or changed once transport begins.
1999(c) All vehicles transporting cannabis goods for hire shall be required to have a motor carrier
2000permit pursuant to Chapter 2 (commencing with Section 34620) of Division 14.85 of the Vehicle
2001Code.
2002(d) Transportation by means of aircraft, watercraft, drone, rail, human powered vehicle, and
2003unmanned vehicle is prohibited.
2004(e) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible
2005or identifiable from outside of the vehicle or trailer.
2006(f) Cannabis goods shall be locked in a box, container, or cage that is secured to the inside of the
2007vehicle or trailer. For purposes of this section, the inside of the vehicle includes the trunk.
2008(g) While left unattended, vehicles and trailers shall be locked and secured.
2009(h) A licensed distributor shall not leave a vehicle or trailer containing cannabis goods
2010unattended in a residential area or parked overnight in a residential area.
2011(i) At a minimum, a licensed distributor shall have a vehicle alarm system on all transport
2012vehicles and trailers. Motion detectors, pressure switches, duress, panic, and hold-up alarms may
2013also be used.
2014(j) Packages or containers holding cannabis goods shall not be tampered with, or opened, during
2015transport.
2016(k) A licensed distributor transporting cannabis goods shall only travel between licensees
2017shipping or receiving cannabis goods and its own licensed premises when engaged in the
2018transportation of cannabis goods. The licensed distributor may transport multiple shipments of
2019cannabis goods at once in accordance with applicable laws. A licensed distributor shall not
2020deviate from the travel requirements described in this section, except for necessary rest, fuel, or
2021vehicle repair stops.
2022(l) Under no circumstances may non-cannabis goods, except for cannabis accessories and
2023licensees’ branded merchandise or promotional materials be transported with cannabis goods.
2024(m)Vehicles and trailers transporting cannabis goods are subject to inspection by the Bureau at
2025any licensed premises or during transport at any time.
2026(n) Notwithstanding subsections (d) and (e) of this section, if it is not operationally feasible to
2027transport cannabis goods inside of a vehicle or trailer because the licensed premises that the
2028cannabis goods will be transported from and the licensed premises that will be receiving the
2029cannabis goods are located within the same building or on the same parcel of land, the cannabis
2030goods may be transported by foot, hand truck, fork lift, or other similar means. A shipping
2031manifest that complies with this division is required when transporting cannabis goods pursuant
2032to this subsection.
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2034
2035Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2036and Professions Code.
2037§ 5312. Required Transport Vehicle Information
2038(a) In addition to the information required in section 5314 of this division, any licensed
2039distributor who will be or is transporting cannabis goods shall provide the following information
2040to the Bureau:
2041(1) Proof that the licensed distributor owns or holds a valid lease for each vehicle and trailer used
2042to transport cannabis goods;
2043(2) The year, make, model, license plate number, and numerical Vehicle Identification Number
2044(VIN) for each vehicle and trailer used to transport cannabis goods; and
2045(3) Proof of insurance for each vehicle and trailer used to transport cannabis goods.
2046(b) The licensed distributor shall provide the Bureau with the information required by this
2047section in writing for any new vehicle or trailer that will be used to transport cannabis goods
2048prior to using the vehicle or trailer to transport cannabis goods.
2049(c) The licensed distributor shall provide the Bureau with any changes to the information
2050required by this section in writing within 30 calendar days.
2051Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2052and Professions Code.
2053§ 5313. Transport Personnel Requirements
2054(a) No person under the age of 21 years old shall be in a commercial vehicle or trailer
2055transporting cannabis goods; and
2056(b) Only a licensee, an employee of the licensed distributor, or security personnel that meets the
2057requirements of section 5045 of this division, shall be in a vehicle while transporting cannabis
2058goods.
2059Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2060and Professions Code.
2061§ 5314. Shipping Manifest
2062(a) Prior to transporting cannabis goods, a licensed distributor shall generate a shipping manifest
2063through the track and trace system for the following activities:
2064(1) Testing and sampling;
2065(2) Sale of cannabis goods to a licensee;
2066(3) Destruction or disposal of cannabis goods; and
2067(4) Any other activity, as required pursuant to this division, or by any other licensing authority.
2068Bureau of Cannabis Control Regular Regulations Text Page 53 of 136
2069
2070(b) The licensed distributor shall transmit the shipping manifest to the Bureau and the licensee
2071that will receive the cannabis goods prior to transporting the cannabis goods.
2072(c) The licensed distributor shall ensure and verify that the cannabis goods being taken into
2073possession for transport at the originating licensed premises are as described and accurately
2074reflected in the shipping manifest. For purposes of this section, the licensed distributor may
2075verify that the cannabis goods are accurately reflected in the shipping manifest by confirming
2076that the number of boxes of cannabis goods, type of cannabis goods, weight and or units of
2077cannabis goods, matches the label on the boxes containing the cannabis goods.
2078(1) The licensed distributor shall not take into possession or transport:
2079(A) Any cannabis goods that are not on the shipping manifest; or
2080(B) Any cannabis goods that are less than or greater than the amount reflected on the shipping
2081manifest.
2082(2) The licensed distributor is responsible for any discrepancies between the shipping manifest
2083and the cannabis goods in its possession during transport, and subject to any enforcement or
2084disciplinary action related to such discrepancy.
2085(3) A licensed distributor shall not void or change a shipping manifest after departing from the
2086originating licensed premises.
2087(d) A shipping manifest shall accompany every transport of cannabis goods.
2088(e) Notwithstanding subsection (a) of this section, if a transporting licensed distributor has not
2089obtained access to the track and trace system, the licensed distributor shall complete the shipping
2090manifest outside of the track and trace system and transmit it to the Bureau and the licensee
2091receiving the shipment by electronic mail.
2092(f) If the transporting licensed distributor has access to the track and trace system and the
2093licensee receiving the shipment has not obtained access to the track and trace system, the
2094licensed distributor shall complete the shipping manifest in the track and trace system and
2095transmit it to the Bureau. However, the licensed distributor shall send a copy to the licensee
2096receiving the shipment by electronic mail.
2097Authority: Section 26013, Business and Professions Code. Reference: Sections 26067 and
209826070, Business and Professions Code
2099§ 5315. Distributor Transport Only License
2100(a) A licensed distributor transport only licensee may transport cannabis goods between
2101licensees; however, they shall not transport any cannabis goods except for immature cannabis
2102plants and seeds to a licensed retailer or licensed microbusiness.
2103(b) A complete application for a distributor transport only license shall include all the
2104information required in an application for a distributor license.
2105
2106Bureau of Cannabis Control Regular Regulations Text Page 54 of 136
2107
2108(c) The licensing fee for a distributor transport only license will be based in part upon whether
2109the licensee intends to transport only cannabis goods that the licensee has cultivated or
2110manufactured (self-distribution), or whether the licensee intends to transport cannabis goods
2111cultivated or manufactured by other licensees.
2112(d) A distributor transport only licensee shall comply with all of the requirements for a holder of
2113a distributor license, except for those related to quality assurance and testing.
2114(e) A distributor transport only licensee shall not hold title to any cannabis goods unless the
2115licensee also holds a state-issued cultivation, manufacturing, retailer, or microbusiness license.
2116(f) Holding a distributor transport only license shall not authorize a licensee to:
2117(1) Engage in the delivery of cannabis goods as defined in Business and Professions Code
2118section 26001(p);
2119(2) Engage in the wholesale, destruction, packaging, labeling, or storing of cannabis goods; or
2120(3) Arrange for the testing of cannabis goods by a testing laboratory.
2121(g) Notwithstanding subsection (e) of this section, a distributor transport only licensee who is
2122licensed to engage in self-distribution and whose licensed premises will be on the same property
2123as their licensed cultivation or manufacturing premises shall not be required to comply with the
2124security provisions contained in Article 5 of this division.
2125Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
212626070, Business and Professions Code.
2127Chapter 3. RETAILERS
2128§ 5400. Access to Retailer Premises
2129(a) Access to the licensed premises of a retailer with only an A-designation shall be limited to
2130individuals who are at least 21 years of age.
2131(b) Access to a licensed premises with only an M-designation shall be limited to individuals who
2132are at least 18 years of age and have a valid physician’s recommendation for medicinal cannabis.
2133(c) Access to a licensed premises with both an A-designation and an M-designation-may include
2134persons identified in subsections (a) and (b) of this section.
2135Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
213626140, Business and Professions Code.
2137§ 5401. [reserved]
2138§ 5402. Customer Access to the Retail Area
2139(a) Individuals shall be granted access to the retail area to purchase cannabis goods only after the
2140licensed retailer or an employee of the licensed retailer has confirmed the individual’s age and
2141identity pursuant to section 5404 of this division.
2142Bureau of Cannabis Control Regular Regulations Text Page 55 of 136
2143
2144(b) The licensed retailer or at least one employee shall be physically present in the retail area at
2145all times when individuals who are not employees of the licensed retailer are in the retail area.
2146(c) All sales of cannabis goods, with the exception of cannabis goods sold through delivery, must
2147take place within the retail area of the retailer’s licensed premises.
2148Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
214926140, Business and Professions Code.
2150§ 5403. Hours of Operation
2151A licensed retailer shall sell and deliver cannabis goods only between the hours of 6:00 a.m.
2152Pacific Time and 10:00 p.m. Pacific Time.
2153Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2154and Professions Code
2155§ 5403.1 Requirements While Not Open for Business
2156At any time the licensed premises is not open for retail sales, a licensed retailer shall ensure that:
2157(a) The licensed premises is securely locked with commercial-grade, nonresidential door locks as
2158defined in section 5046 of this division;
2159(b) The licensed premises is equipped with an active alarm system pursuant to section 5047 of
2160this division, which shall be activated when the licensed retailer or its employees are not on the
2161licensed premises; and
2162(c) Only employees of the licensee and other authorized individuals are allowed access to the
2163licensed premises. For the purposes of this section, authorized individuals include individuals
2164employed by the licensee as well as any outside vendors, contractors, or other individuals
2165conducting business that requires access to the licensed premises.
2166Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2167and Professions Code
2168§ 5404. Retail Customers
2169(a) A licensed retailer shall only sell adult-use cannabis goods to individuals who are at least 21
2170years of age after confirming the customer’s age and identity by inspecting a valid form of
2171identification provided by the customer as required by subsection (c) of this section.
2172(b) A licensed retailer shall only sell medicinal cannabis goods to individuals who are at least 18
2173years of age and possesses a valid physician’s recommendation after confirming the customer’s
2174age, identity, and physician’s recommendation as required by subsection (c) of this section.
2175(c) Acceptable forms of identification include the following:
2176
2177Bureau of Cannabis Control Regular Regulations Text Page 56 of 136
2178
2179(1) A document issued by a federal, state, county, or municipal government, or a political
2180subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's
2181license, that contains the name, date of birth, height, gender, and photo of the person;
2182(2) A valid identification card issued to a member of the Armed Forces that includes the person’s
2183name, date of birth, and photo; or
2184(3) A valid passport issued by the United States or by a foreign government.
2185Authority: Section 26013, Business and Professions Code. Reference: Section 26140, Business
2186and Professions Code.
2187§ 5405. Cannabis Goods Display
2188(a) Cannabis goods for inspection and sale shall only be displayed in the retail area.
2189(b) Cannabis goods may be removed from their packaging and placed in containers to allow for
2190customer inspection. The containers shall not be readily accessible to customers without
2191assistance of retailer personnel. A container must be provided to the customer by the licensed
2192retailer or its employees, who shall remain with the customer at all times that the container is
2193being inspected by the customer.
2194(c) Cannabis goods removed from their packaging for display shall not be sold, shall not be
2195consumed, and shall be destroyed pursuant to section 5054 of this division when the cannabis
2196goods are no longer used for display.
2197Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2198and Professions Code
2199§ 5406. Cannabis Goods for Sale
2200A licensed retailer shall not make any cannabis goods available for sale or delivery to a customer
2201unless:
2202(a) The cannabis goods were received by the retail licensee from a licensed distributor or
2203licensed microbusiness;
2204(b) The licensed retailer has verified that the cannabis goods have not exceeded their expiration
2205or sell-by date if one is provided;
2206(c) In the case of manufactured cannabis products, the product complies with all requirements of
2207Business and Professions Code section 26130 and and California Code of Regulations, Title 3,
2208Division 8 and Title 17, Division 1, Chapter 13;
2209(d) The cannabis goods have undergone laboratory testing as required by the Act and Chapter 6
2210of this division;
2211(e) The packaging and labeling of the cannabis goods complies with Business and Professions
2212Code Section 26120 and all applicable regulations within this division as well as California Code
2213of Regulations, Title 3, Division 8 and Title 17, Division 1, Chapter 13; and
2214Bureau of Cannabis Control Regular Regulations Text Page 57 of 136
2215
2216(f) The cannabis goods comply with all applicable requirements found in the Act and applicable
2217regulations.
2218Authority: Section 26013, Business and Professions Code. Reference: Section 26070 and 26120,
2219Business and Professions Code.
2220§ 5407. Sale of Non-Cannabis Goods on Premises
2221In addition to cannabis goods, a licensed retailer may sell only cannabis accessories and any
2222licensee’s branded merchandise or promotional materials.
2223Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2224and Professions Code.
2225§ 5408. Sale of Live Plants and Seeds
2226(a) A licensed retailer shall only sell live, immature cannabis plants and cannabis seeds if all of
2227the following requirements are met:
2228(1) The plant is not flowering;
2229(2) The plant or seed originated from a nursery that holds a valid license from the Department of
2230Food and Agriculture or a licensed microbusiness; and
2231(3) A label is affixed to the plant or package containing any seeds which states “This product has
2232not been tested pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.”
2233(b) A licensed retailer may not sell any other live plants.
2234(c) A licensed retailer shall not apply nor use any pesticide, nor cause any pesticide to be applied
2235nor used, on live plants.
2236Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
223726100, Business and Professions Code
2238§ 5409. Daily Limits
2239(a) A licensed retailer shall not sell more than the following amounts to a single adult-use
2240cannabis customer in a single day:
2241(1) 28.5 grams of non-concentrated cannabis.
2242(2) 8 grams of concentrated cannabis as defined in Business and Professions Code section 26001,
2243including concentrated cannabis contained in cannabis products.
2244(3) 6 immature cannabis plants.
2245(b) A licensed retailer shall not sell more than the following amounts to a single medicinal
2246cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of
2247the patient, in a single day:
2248Bureau of Cannabis Control Regular Regulations Text Page 58 of 136
2249
2250(1) 8 ounces of medicinal cannabis in the form of dried mature flowers or the plant conversion as
2251provided in Health and Safety Code section 11362.77.
2252(2) 12 immature cannabis plants.
2253(c) Notwithstanding subsection (b) of this section, if a medicinal cannabis patient’s valid
2254physician’s recommendation contains a different amount than the limits listed in this section, the
2255medicinal cannabis patient may purchase an amount of medicinal cannabis consistent with the
2256patient’s needs as recommended by a physician and documented in the physician’s
2257recommendation.
2258(d) The limits provided in subsection (a) and subsection (b) of this section shall not be combined
2259to allow a customer to purchase cannabis goods in excess of any of the limits provided in this
2260section.
2261Authority: Section 26013, Business and Professions Code. Reference: Section 26012, Business
2262and Professions Code; and Sections 11362.1 and 11362.77, Health and Safety Code.
2263§ 5410. Customer Return of Cannabis Goods
2264(a) For the purposes of this section, “customer return” means a customer’s return of cannabis
2265goods that were purchased from a licensed retailer, back to the licensed retailer the cannabis
2266goods were purchased from.
2267(b) A licensed retailer may accept customer returns of cannabis goods that were previously sold
2268to a customer.
2269(c) A licensed retailer shall not resell cannabis goods that have been returned.
2270(d) A licensed retailer shall treat any cannabis goods abandoned on the licensed retailer premises
2271as a customer return.
2272(e) A licensed retailer shall destroy all cannabis goods that have been returned to the licensed
2273retailer by a customer, in accordance with sections 5054 and 5055 of this division.
2274Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, 26012,
2275and 26070, Business and Professions Code
2276§ 5411. Free Cannabis Goods
2277(a) A licensed retailer shall not provide free cannabis goods to any person. A licensed retailer
2278shall not allow individuals who are not employed by the licensed retailer to provide free cannabis
2279goods to any person on the licensed premises.
2280(b) Notwithstanding subsection (a) of this section, in order to provide access to medicinal
2281cannabis patients who have difficulty accessing medicinal cannabis goods, a licensee who holds
2282an M-Retailer license, an M-Retailer Non-storefront license, or an M-Microbusiness license that
2283is authorized for retail sales may provide free medicinal cannabis goods if all of the following
2284criteria are met:
2285
2286Bureau of Cannabis Control Regular Regulations Text Page 59 of 136
2287
2288(1) Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver
2289for the patient in possession identification card issued under Section 11362.71 of the Health and
2290Safety Code.
2291(2) The cannabis goods comply with all applicable laboratory testing requirements under this
2292division.
2293(3) Prior to being provided to the patient or primary caregiver, the cannabis goods have been
2294properly recorded in the track and trace system as belonging to the licensed retailer.
2295(4) The cannabis goods shall not leave the licensed premises unless placed in a resealable childresistant opaque package as required for purchased cannabis goods under Business and
2296Professions Code section 26070.1.
2297(5) The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis
2298customer pursuant to section 5409 of this division.
2299(6) The event shall be properly recorded in the licensed retailer’s inventory records and the track
2300and trace system.
2301(c) In addition to the provision of free cannabis goods in subsection (b) of this section, a licensee
2302may donate cannabis goods and the use of equipment in compliance with any compassionate use,
2303equality, or other similar program administered by a local jurisdiction. The licensee shall ensure
2304that all cannabis goods provided pursuant to this subsection comply with subsections (b)(2) and
2305(b)(6) of this section.
2306Authority: Section 26013, Business and Professions Code. Reference: Sections 26013, 26153
2307and 26160, Business and Professions Code.
2308§ 5412. Prohibition on Packaging and Labeling by a Retailer
2309(a) A licensed retailer shall not accept, possess, or sell cannabis goods that are not packaged as
2310they will be sold at final sale, in compliance with this division.
2311(b) A licensed retailer shall not package or label cannabis goods.
2312(c) A licensed retailer who also holds a distribution, manufacturing, or cultivation license may
2313package and label cannabis goods as allowed by the distribution, manufacturing, or cultivation
2314license at their licensed distribution, manufacturing, or cultivation premises.
2315Authority: Section 26013, Business and Professions Code. Reference: Section 26120, Business
2316and Professions Code
2317§ 5413. Exit Packaging
2318Cannabis goods purchased by a customer shall not leave the licensed retailer’s premises unless
2319the goods are placed in a resealable child-resistant opaque exit package.
2320Authority: Section 26013, Business and Professions Code. Reference: Sections 26070.1 and
232126120, Business and Professions Code.
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2323
2324§ 5414. Non-Storefront Retailer
2325(a) A non-storefront retailer licensee shall be authorized to conduct retail cannabis sales
2326exclusively by delivery as defined in Business and Professions Code section 26001(p).
2327(b) A complete application for a non-storefront retailer license shall include all the information
2328required in an application for a retailer license.
2329(c) A Non-Storefront Retailer licensee shall comply with all the requirements applicable to
2330retailer licensees, except for those provisions related to public access to the licensed premises.and the retail area.
2331(d) The licensed premises of a non-storefront retailer licensee shall be closed to the public.
2332Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
233326070, Business and Professions Code.
2334§ 5415. Delivery Employees
2335(a) All deliveries of cannabis goods shall be performed by a delivery employee that is directly
2336employed by a licensed retailer.
2337(b) Each delivery employee of a licensed retailer shall be at least 21 years of age.
2338(c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall
2339not be made through the use of an unmanned vehicle.
2340(d) The process of delivery begins when the delivery employee leaves the retailer’s licensed
2341premises with the cannabis goods for delivery. The process of delivering ends when the delivery
2342employee returns to the retailer’s licensed premises after delivering the cannabis goods to the
2343customer(s). During the process of delivery, the retailer’s delivery employee may not engage in
2344any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
2345(e) A delivery employee of a licensed retailer shall, during deliveries, carry a copy of the
2346retailer’s current license, the employee’s government-issued identification, and an identification
2347badge provided by the employer pursuant to section 5043 of this division.
2348(f) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm
2349the identity and age of the delivery customer as required by section 5404 of this division, and
2350place the cannabis goods in a resealable child-resistant opaque exit package.
2351(g) A licensed retailer shall maintain an accurate list of the retailer’s delivery employees and
2352shall provide the list to the Bureau upon request.
2353Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
235426090, Business and Professions Code.
2355§ 5416. Delivery to a Physical Address
2356(a) A delivery employee may only deliver cannabis goods to a physical address in California.
2357
2358Bureau of Cannabis Control Regular Regulations Text Page 61 of 136
2359
2360(b) A delivery employee shall not leave the State of California while possessing cannabis goods.
2361(c) A delivery employee shall not deliver cannabis goods to an address located on publicly
2362owned land or any address on land or in a building leased by a public agency. This prohibition
2363applies to land held in trust by the United States for a tribe or an individual tribal member unless
2364the delivery is authorized by and consistent with applicable tribal law.
2365(d) A delivery employee may deliver to any jurisdiction within the State of California.
2366Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
236726090, Business and Professions Code.
2368§ 5417. Delivery Vehicle Requirements
2369(a) A retailer’s delivery employee, carrying cannabis goods for delivery, shall only travel in an
2370
2371enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by
2372a delivery employee of the licensee. Only the licensee or an employee of the retailer licensee for
2373whom delivery is being performed shall be in the delivery vehicle.
2374(b) While carrying cannabis goods for delivery, a retailer’s delivery employee shall ensure the
2375cannabis goods are not visible to the public. Cannabis goods shall be locked in a box, container,
2376or cage that is secured on the inside of the vehicle. For purposes of this section, the inside of the
2377vehicle includes the trunk.
2378(c) A retailer’s delivery employee shall not leave cannabis goods in an unattended motor vehicle
2379unless the motor vehicle is locked and equipped with an active vehicle alarm system.
2380(d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global
2381Positioning System (GPS) device for identifying the geographic location of the delivery vehicle.
2382A dedicated GPS device must be owned by the licensee and used for delivery only. The device
2383shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active
2384and inside of the delivery vehicle at all times during delivery. At all times, the licensed retailer
2385shall be able to identify the geographic location of all delivery vehicles that are making
2386deliveries for the licensed retailer and shall provide that information to the Bureau upon request.
2387(e) Upon request, a licensed retailer shall provide the Bureau with information regarding any
2388motor vehicle used for the delivery of cannabis goods, including the vehicle’s make, model,
2389color, Vehicle Identification Number, license plate number and Department of Motor Vehicles
2390registration information.
2391(f) Any motor vehicle used by a licensed retailer to deliver cannabis goods is subject to
2392inspection by the Bureau. Vehicles used to deliver cannabis goods may be stopped and inspected
2393by the Bureau at any licensed premises or during delivery.
2394Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
239526090, Business and Professions Code.
2396§ 5418. Cannabis Goods Carried During Delivery
2397(a) A retailer’s delivery employee shall not carry cannabis goods in the delivery vehicle in excess
2398of $10,000 at any time. The value of cannabis goods shall be determined using the current retail
2399Bureau of Cannabis Control Regular Regulations Text Page 62 of 136
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2401price of all cannabis goods carried by, or within the delivery vehicle of, the retailer’s delivery
2402employee.
2403(b) A delivery employee may only carry cannabis goods in the delivery vehicle and may only
2404perform deliveries for one licensed retailer at a time. A delivery employee must depart and return
2405to the same licensed premises before taking possession of any cannabis goods from another
2406licensee to perform deliveries.
2407(c) A retailer’s delivery employee shall not leave the licensed premises with cannabis goods
2408without at least one delivery order that has already been received and processed by the licensed
2409retailer.
2410(d) Before leaving the licensed premises, the retailer’s delivery driver must have a delivery
2411inventory ledger of all cannabis goods provided to the retailer’s delivery driver. For each
2412cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail
2413value, the track and trace identifier, and the weight, volume or other accurate measure of the
2414cannabis good. After each customer delivery, the delivery inventory ledger must be updated to
2415reflect the current inventory in possession of the retailer’s delivery driver.
2416(e) The retailer’s delivery driver shall maintain a log that includes all stops from the time the
2417retailer’s delivery driver leaves the licensed premises to the time that the retailer’s delivery driver
2418returns to the licensed premises, and the reason for each stop. The log shall be turned in to the
2419retailer when the retailer’s delivery driver returns to the licensed premises. The licensed retailer
2420must maintain the log as a commercial cannabis activity record as required by this division.
2421(f) Prior to arrival at any delivery location, the licensed retailer must have received a delivery
2422request from the customer and provided the delivery request receipt to the retailer’s delivery
2423driver electronically or in hard copy. The delivery request receipt provided to the retailer’s
2424delivery driver shall contain all of the information required in section 5420 of this division,
2425except for the date and time the delivery was made, and the signature of the customer.
2426(g) Immediately upon request by the Bureau or any law enforcement officer, the retailer’s
2427delivery driver shall provide:
2428(1) All delivery inventory ledgers from the time the retailer’s delivery driver left the licensed
2429premises up to the time of the request;
2430(2) All delivery request receipts for cannabis goods carried by the driver, in the delivery vehicle,
2431or any deliveries that have already been made to customers; and
2432(3) The log of all stops from the time the retailer’s delivery driver left the licensed premises up to
2433the time of the request.
2434(h) If a retailer’s delivery driver does not have any delivery requests to be performed for a 30minute period, the retailer’s delivery driver shall not make any additional deliveries and shall
2435return to the licensed premises. Required meal breaks shall not count toward the 30-minute
2436period.
2437
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2440(i) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to
2441inventory and all necessary inventory and track-and-trace records shall be updated as appropriate
2442that same day.
2443Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
244426090, Business and Professions Code.
2445§ 5419. Cannabis Consumption During Delivery
2446A retailer’s delivery employees shall not consume cannabis goods while delivering cannabis
2447goods to customers.
2448Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
244926090, Business and Professions Code.
2450§ 5420. Delivery Request Receipt
2451A licensed retailer shall prepare a hard copy or electronic delivery request receipt for each
2452delivery of cannabis goods.
2453(a) The delivery request receipt shall contain the following:
2454(1) The name and address of the licensed retailer;
2455(2) The first name and employee number of the retailer’s delivery employee who delivered the
2456order;
2457(3) The first name and employee number of the retailer’s employee who prepared the order for
2458delivery;
2459(4) The first name of the customer and a retailer-assigned customer number for the person who
2460requested the delivery;
2461(5) The date and time the delivery request was made;
2462(6) The delivery address;
2463(7) A detailed description of all cannabis goods requested for delivery. The description shall
2464include the weight, volume, or any other accurate measure of the amount of all cannabis goods
2465requested;
2466(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis
2467goods, and any other charges related to the delivery; and
2468(9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic
2469signature of the customer who received the delivery.
2470(b) At the time of the delivery, the delivery employee of the retailer shall provide the customer
2471who placed the order with a hard or electronic copy of the delivery request receipt. The delivery
2472employee shall retain a hard or electronic copy of the signed delivery request receipt for the
2473licensed retailer’s records.
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2476(c) For the purposes of this section, an employee number is a distinct number assigned by a
2477licensed retailer to their employees that would allow the licensed retailer to identify the
2478employee on documents or records using the employee number rather than the employee’s full
2479name. A licensed retailer shall be able to identify the employee associated with each employee
2480number upon request from the Bureau.
2481(d) For the purposes of this section, a customer number is a distinct number assigned by a
2482licensed retailer to a customer that would allow the licensed retailer to identify the customer in
2483documents or records using the customer number rather than the customer’s full name. A
2484licensed retailer shall be able to identify the customer associated with each customer number
2485upon request from the Bureau.
2486Authority: Section 26013, Business and Professions Code. Reference: Sections 26070, 26090,
2487and 26160, Business and Professions Code.
2488§ 5421. Delivery Route
2489While making deliveries of cannabis goods, a retailer’s delivery employee shall only travel from
2490the retailer’s licensed premises to the delivery address; from one delivery address to another
2491delivery address; or from a delivery address back to the retailer’s licensed premises. A delivery
2492employee of a retailer shall not deviate from the delivery path described in this section, except
2493for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of
2494the route unsafe, impossible, or impracticable.
2495Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
249626090, Business and Professions Code.
2497§ 5422. Receiving Shipments of Inventory
2498(a) A licensed retailer shall receive a shipment of cannabis goods only from a licensed distributor
2499or licensed microbusiness.
2500(b) A licensed retailer shall accept shipments of cannabis goods only between the hours of 6:00
2501a.m. Pacific Time and 10:00 p.m. Pacific Time.
2502(c) During business hours, shipments of cannabis goods shall not enter the licensed premises
2503through an entrance or exit that is available for use by the public.
2504Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2505and Professions Code.
2506§ 5423. Inventory Documentation
2507A licensed retailer shall maintain an accurate record of its inventory. A licensed retailer shall
2508provide the Bureau with the record of inventory immediately upon request. A licensed retailer
2509shall keep a record of the following information for all cannabis goods the licensed retailer has in
2510its inventory:
2511
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2513
2514(a) A description of each item such that the cannabis goods can easily be identified;
2515(b) An accurate measurement of the quantity of the item;
2516(c) The date and time the cannabis goods were received by the licensed retailer;
2517(d) The sell-by or expiration date provided on the package of cannabis goods, if any;
2518(e) The name and license number of the licensed distributor or licensed microbusiness that
2519transported the cannabis goods to the licensed retailer; and
2520(f) The price the licensed retailer paid for the cannabis goods, including taxes, delivery costs, and
2521any other costs.
2522Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
2523and Professions Code.
2524§ 5424. Inventory Reconciliation
2525(a) A licensed retailer shall perform a reconciliation of its inventory at least once every 14
2526calendar days.
2527(b) In conducting an inventory reconciliation, a licensed retailer shall verify that the licensed
2528retailer’s physical inventory is consistent with the licensed retailer’s records pertaining to
2529inventory.
2530(c) The result of inventory reconciliation shall be retained in the licensed retailer’s records and
2531shall be made available to the Bureau upon request.
2532(d) If a licensed retailer identifies any evidence of theft, diversion, or loss, the licensed retailer
2533shall notify the Bureau and law enforcement pursuant to section 5036 of this division.
2534(e) If a significant discrepancy as defined in section 5034 of this division is discovered between a
2535licensed retailer’s physical inventory and the licensed retailer’s inventory records, the licensed
2536retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division.
2537Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
2538and Professions Code.
2539§ 5425. Record of Sales
2540(a) A licensed retailer shall maintain an accurate record of sale for every sale made to a
2541customer.
2542(b) A record of cannabis goods sold to a customer shall contain the following information:
2543(1) The first name and employee number of the retailer employee who processed the sale;
2544(2) The first name and the retailer-assigned customer number for the customer who made the
2545purchase;
2546(3) The date and time of the transaction;
2547Bureau of Cannabis Control Regular Regulations Text Page 66 of 136
2548
2549(4) A list of all the cannabis goods purchased, including the quantity purchased; and
2550(5) The total amount paid for the sale including the individual prices paid for each cannabis good
2551purchased and any amounts paid for taxes.
2552(c) For the purposes of this section, an employee number is a distinct number assigned by a
2553licensed retailer to their employees that would allow the licensed retailer to identify the
2554employee on documents or records using the employee number rather than the employee’s full
2555name. A licensed retailer shall be able to identify the employee associated with each employee
2556number upon request from the Bureau.
2557(d) For the purposes of this section, a customer number is a distinct number assigned by a
2558licensed retailer to a customer that would allow the licensed retailer to identify the customer in
2559documents or records using the customer number rather than the customer’s full name. A
2560licensed retailer shall be able to identify the customer associated with each customer number
2561upon request from the Bureau.
2562Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
2563and Professions Code.
2564§ 5426. Records
2565All licensed retailer-specific records in this chapter shall be maintained in accordance with
2566section 5037 of this division.
2567Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
2568and Professions Code.
2569§ 5427. Retailer Premises to Retailer Premises Transfer
2570(a) A licensee who holds multiple retail licenses may arrange for the transfer of cannabis goods
2571from one licensed retail premises to another licensed retail premises if both retail licenses are
2572held under the same ownership.
2573(b) Cannabis goods transferred to a licensed retail premises under subsection (a) of this section
2574may be sold by the licensed retailer receiving the cannabis goods only if the cannabis goods
2575comply with all requirements found in the Act and this division.
2576(c) The transportation of cannabis goods under this section must comply with all requirements
2577found within the Act and this division.
2578(d) Any movement of cannabis goods under this section shall be properly entered into the state
2579track and trace system.
2580Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
2581and Professions Code.
2582
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2584
2585Chapter 4. MICROBUSINESS
2586§ 5500. Microbusiness
2587(a) In order to hold a microbusiness license, a licensee must engage in at least three (3) of the
2588following commercial cannabis activities: cultivation, manufacturing, distribution, and retail
2589sale. License types created by the California Department of Food and Agriculture or the State
2590Department of Public Health in regulation shall not be considered qualifying commercial
2591cannabis activities for purposes of obtaining a microbusiness license.
2592(b) An applicant for a microbusiness license shall indicate on the application for licensure which
2593commercial cannabis activities the applicant intends to engage in.
2594(c) An application for a microbusiness license shall include:
2595(1) For an application indicating that the applicant intends to engage in cultivation under the
2596microbusiness license all the required information under sections 5002, 5501, 5502 and 5503 of
2597this division.
2598(2) For an application indicating that the applicant intends to engage in manufacturing under the
2599microbusiness license all the required information under sections 5002 and 5504 of this division.
2600(3) For an application indicating that the applicant intends to engage in distribution under the
2601microbusiness license all the required information for an application seeking a distributor
2602license.
2603(4) For an application indicating that the applicant intends to engage in distribution, transportonly under the microbusiness license, all the required information for an application seeking a
2604distributor, transport-only license.
2605(5) For an application indicating that the applicant intends to engage in retail sale under the
2606microbusiness license, all the required information for an application seeking a retailer license.
2607(6) For an application indicating that the applicant intends to engage in non-storefront retail sale
2608under the microbusiness license, all the required information for an application seeking a nonstorefront retailer license.
2609(d) All cultivation, manufacturing, distribution, and retail activities performed by a licensee
2610under a microbusiness license shall occur on the same licensed premises.
2611(e) A holder of a microbusiness license shall comply with the following:
2612(1) A holder of a microbusiness license engaged in cultivation shall comply with all the rules and
2613requirements applicable to the cultivation license type suitable for the cultivation activities of the
2614licensee.
2615
2616Bureau of Cannabis Control Regular Regulations Text Page 68 of 136
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2618(2) A holder of a microbusiness license engaged in manufacturing shall comply with all the rules
2619and requirements applicable to a Manufacturer 1 license in Division 1 of Title 17 of the
2620California Code of Regulations.
2621(3) A holder of a microbusiness license engaged in distribution shall comply with all the rules
2622and requirements applicable to a distributor license in this division.
2623(4) A holder of a microbusiness license engaged in retail sale shall comply with all the rules and
2624requirements applicable to a retailer license, or a non-storefront retailer license if retail sales are
2625conducted by delivery only in this division.
2626(f) A holder of a microbusiness license may only engage in the commercial cannabis activity
2627requested in the license application and approved by the Bureau at the time the license is issued.
2628If the holder of a microbusiness license wants to engage in an additional commercial cannabis
2629activity after the license is issued, the licensee shall submit a request for a modification of the
2630licensed premises pursuant to section 5027 of this division.
2631(g) A holder of a microbusiness license shall comply with all the security rules and requirements
2632applicable to the corresponding license type suitable for the activities of the licensee.
2633(h) Areas of the licensed premises for manufacturing and cultivation shall be separated from the
2634distribution and retail areas by a wall and all doors between the areas shall remain closed when
2635not in use.
2636(i) A suspension or revocation of a microbusiness licensee shall affect all commercial cannabis
2637activities allowed pursuant to that license.
2638Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
263926070, Business and Professions Code.
2640§ 5501. Microbusiness Applications Including Cultivation Activities
2641In addition to the information required in section 5002 of this division, an application for a
2642microbusiness license to engage in cultivation shall include the following:
2643(a) Evidence of enrollment with the applicable Regional Water Quality Control Board or State
2644Water Resources Control Board for water quality protection programs or written verification
2645from the appropriate Board that enrollment is not necessary.
2646(b) Evidence that the applicant has conducted a hazardous materials record search of the
2647EnviroStor database for the proposed premises. If hazardous sites were encountered, the
2648applicant shall provide documentation of protocols implemented to protect employee health and
2649safety.
2650(c) For indoor and mixed-light cultivation, identification of all power sources for cultivation
2651activities, including, but not limited to: illumination, heating, cooling, and ventilation.
2652(d) A premises diagram pursuant to section 5006 of this division that shall also include:
2653(1) All roads and water crossings on the property.
2654Bureau of Cannabis Control Regular Regulations Text Page 69 of 136
2655
2656(2) If the applicant is proposing to use a diversion from a waterbody, groundwater well, or rain
2657catchment system as a water source for cultivation, the following locations on the property
2658diagram with locations also provided as coordinates in either latitude and longitude or the
2659California Coordinate System:
2660(A) Sources of water used, including the location of waterbody diversion(s), pump location(s),
2661and distribution system; and
2662(B) Location, type, and capacity of each storage unit to be used for cultivation.
2663(e) A proposed cultivation plan pursuant to section 5502 of this division.
2664(f) Identification of all water sources used for cultivation activities and the applicable
2665supplemental information for each source as required by section 5503 of this division:
2666(1) A retail water supplier;
2667(2) A groundwater well;
2668(3) A rainwater catchment system; or
2669(4) A diversion from a surface waterbody or an underground stream flowing in a known and
2670definite channel.
2671(g) A copy of any final lake or streambed alteration agreement issued by the California
2672Department of Fish and Wildlife, pursuant to Fish and Game Code sections 1602 and 1617, or
2673written verification from the California Department of Fish and Wildlife that a lake and
2674streambed alteration agreement is not required.
2675(h) An attestation that the applicant entity is an "agricultural employer" as defined by the
2676Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975; Division 2, Part
26773.5 (commencing with Section 1140) of the Labor Code.
2678(i) An attestation that the local fire department has been notified of the cultivation site if the
2679applicant entity is an indoor license type.
2680(j) An acknowledgement that the applicant understands that the information provided in the
2681application that is relevant to the cultivation operation may be shared with the Department of
2682Food and Agriculture for purposes of evaluating the applicant’s qualifications for licensure. If
2683the Department of Food and Agriculture corresponds directly with the applicant on matters
2684related to the application, the applicant shall agree to cooperate. The applicant shall further agree
2685that the Department of Food and Agriculture may conduct inspections on the areas of the
2686premises related to their respective oversight authority.
2687(k) If applicable, a detailed description of any fines or penalties for cultivation or production of a
2688controlled substance on public or private land pursuant to Fish and Game Code section 12025 or
268912025.1 against the applicant or a business entity in which the applicant was an owner or officer
2690within 3 years preceding the date of application.
2691
2692Bureau of Cannabis Control Regular Regulations Text Page 70 of 136
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2694Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050,
269526051.5 and 26070, Business and Professions Code.
2696§ 5502. Cultivation Plan Requirements
2697A cultivation plan shall include all of the following:
2698(a) A detailed premises diagram showing all cultivation activity areas, boundaries, and dimensions
2699in feet. The total area of the following cultivation activity areas shall be less than 10,000 square
2700feet as provided in Business and Professions Code section 26070.
2701(1) Canopy area(s) (which shall contain mature plants, at any point in time), including aggregate
2702square footage if the canopy areas are noncontiguous;
2703(2) Area(s) outside of the canopy where only immature plants shall be maintained, if applicable;
2704(3) Designated pesticide and other agricultural chemical storage area(s);
2705(4) Designated processing area(s) if the licensee will process on site;
2706(5) Designated packaging area(s) if the licensee will package products on site;
2707(6) Designated composting area(s) if the licensee will compost plant or cannabis waste on site;
2708(7) Designated secured area(s) for cannabis waste if different than subsection (a)(6) of this
2709section;
2710(8) Designated area(s) for harvested cannabis storage;
2711(9) Designated research and development area(s) which may contain mature plants for nursery
2712only;
2713(10) Designated seed production area(s) which may contain mature plants for nursery only; and
2714(b) For purposes of subsection(a)(1) in this section, canopy shall be calculated in square feet and
2715measured using clearly identifiable boundaries of all areas(s) that will contain mature plants at
2716any point in time, including all of the space(s) within the boundaries. Canopy may be
2717noncontiguous, but each unique area included in the total canopy calculation shall be separated
2718by an identifiable boundary which include, but are not limited to: interior walls, shelves,
2719greenhouse walls, hoop house walls, garden benches, hedgerows, fencing, garden beds, or garden
2720plots. If mature plants are being cultivated using a shelving system, the surface area of each level
2721shall be included in the total canopy calculation.
2722(c) For indoor and mixed-light cultivation, a lighting diagram with the following information
2723shall be included:
2724(1) Location of all lights in the canopy area(s); and
2725(2) Maximum wattage, or wattage equivalent, of each light.
2726(d) A pest management plan which shall include, but not be limited to, the following:
2727Bureau of Cannabis Control Regular Regulations Text Page 71 of 136
2728
2729(1) Product name and active ingredient(s) of all pesticides to be applied to cannabis during any
2730stage of plant growth; and
2731(2) Integrated pest management protocols including chemical, biological and cultural methods
2732the applicant anticipates using to control or prevent the introduction of pests on the cultivation
2733site.
2734(e) Cannabis waste procedures meeting the requirements of section 5002(c)(29)(E) of this
2735division.
2736Authority: Section 26013, Business and Professions Code. Reference: Sections 26050, 26051.5
2737and 26070, Business and Professions Code.
2738§ 5503. Supplemental Water Source Information
2739The following information shall be provided for each water source identified by the applicant:
2740(a) Retail water supply sources:
2741(1) If the water source is a retail water supplier, as defined in Water Code section 13575,
2742identify the retail water supplier.
2743(2) If the water source is a small retail water supplier, such as a delivery service, and is subject
2744to Business and Professions Code section 26060.1(a)(1)(B):
2745(A) If the retail water supplier contract is for delivery or pickup of water from a surface water
2746body or an underground stream flowing in a known and definite channel, provide all of the
2747following:
2748(i) The name of the retail water supplier under the contract;
2749(ii) The geographic location coordinates in either latitude and longitude or the California
2750Coordinate System of any point of diversion used by the retail water supplier to divert water
2751delivered to the applicant under the contract;
2752(iii) The authorized place of use of any water right used by the retail water supplier to divert
2753water delivered to the applicant under the contract; and
2754(iv) The maximum amount of water delivered to the applicant for cannabis cultivation in any
2755year.
2756(B) If the retail water supplier contract is for delivery or pickup of water from a groundwater
2757well, provide all of the following:
2758(i) The name of the retail water supplier;
2759(ii) The geographic location coordinates for any groundwater well used to supply water delivered
2760to the applicant, in either latitude and longitude or the California Coordinate System;
2761(iii) The maximum amount of water delivered to the applicant for cannabis cultivation in any
2762year; and
2763Bureau of Cannabis Control Regular Regulations Text Page 72 of 136
2764
2765(iv) A copy of the well log filed with the Department of Water Resources pursuant to Water
2766Code section 13751 for each percolating groundwater well used to divert water delivered to the
2767applicant. If no well log is available, the applicant shall provide evidence from the Department of
2768Water Resources indicating that the Department of Water Resources does not have a record of
2769the well log. When no well log is available, the State Water Resources Control Board may
2770request additional information about the well.
2771(b) If the water source is a groundwater well:
2772(1) The groundwater well’s geographic location coordinates in either latitude and longitude or
2773the California Coordinate System; and
2774(2) A copy of the well log filed with the Department of Water Resources pursuant to Water Code
2775section 13751. If no well log is available, the applicant shall provide evidence from the
2776Department of Water Resources indicating that the Department of Water Resources does not
2777have a record of the well log. If no well log is available, the State Water Resources Control
2778Board may request additional information about the well.
2779(c) If the water source is a rainwater catchment system:
2780(1) The total square footage of the catchment footprint area(s);
2781(2) The total storage capacity, in gallons, of the catchment system(s); and
2782(3) A detailed description of the type, nature, and location of each catchment surface. Examples
2783of catchment surfaces include a rooftop and greenhouse.
2784(d) If the water source is a diversion from a waterbody, provide any applicable statement,
2785application, permit, license, or small irrigation use registration identification number(s); and
2786either:
2787(1) A copy of any applicable registrations, permits, or licenses or proof of a pending application,
2788issued under Part 2 (commencing with Section 1200) of Division 2 of the Water Code as
2789evidence of approval of a water diversion by the State Water Resources Control Board;
2790(2) A copy of any statements of diversion and use filed with the State Water Resources Control
2791Board before October 31, 2017, detailing the water diversion and use; or
2792(3) A copy of documentation submitted to the State Water Resources Control Board before
2793October 31, 2017, demonstrating that the diversion is authorized under a riparian right and that
2794no diversion occurred in any calendar year between January 1, 2010, and January 1, 2017.
2795(4) If the applicant has claimed an exception from the requirement to file a statement of diversion
2796and use,- pursuant to Water Code section 5101 the applicant shall provide a copy of the
2797documentation submitted to the State Water Resources Control Board before January 1, 2019,
2798demonstrating that the diversion is subject to Water Code section 5101, subdivision (a), (c), (d),
2799or (e).
2800Authority: Section 26013, Business and Professions Code. Reference: Sections 26050, 26051.5
2801and 26070, Business and Professions Code; and Section 13149, Water Code.
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2803
2804§ 5504. License Issuance in an Impacted Watershed
2805If the State Water Resources Control Board or the Department of Fish and Wildlife finds, based
2806on substantial evidence, that a microbusiness’ cannabis cultivation is causing significant adverse
2807impacts on the environment in a watershed or other geographic area, the Bureau shall not issue
2808new microbusiness licenses that include cultivation activities or increase the total number of
2809plant identifiers within that watershed or area.
2810Authority: Section 26013, Business and Professions Code. Reference: Section 26011.5, 26055,
281126070, Business and Professions Code.
2812§ 5505. Cultivation Records for Licensees Engaging in Cultivation Activities
2813In addition to the records required by section 5037 of this division, a microbusiness engaging in
2814cultivation activities shall maintain the following records:
2815(a) Cultivation plan(s);
2816(b) All records evidencing compliance with the environmental protection measures required in
2817sections 5501, 5502, 5503, and 5504 of this division; and
2818(c) All unique identifiers (UID) assigned to product in inventory and all unassigned UIDs. UIDs
2819associated with product that has been retired from the track and trace system must be retained for
2820six (6) months after the date the tags were retired.
2821Authority: Section 26013, Business and Professions Code. Reference: Sections 26069, 26160
2822and 26161, Business and Professions Code.
2823§ 5506 Microbusiness Applications Including Manufacturing Activities
2824In addition to the information required in section 5002 of this division, an application for a
2825microbusiness license that engages or will engage in manufacturing, shall include the following:
2826(a) The type of activity conducted at the premises (extraction, infusion, packaging, and/or
2827labeling);
2828(b) The types of products that will be manufactured, packaged, or labeled;
2829(c) The name, title and phone number of the on-site individual who manages the operation of the
2830premises;
2831(d) The name, title and phone number of an alternate contact person for the premises;
2832(e) The number of employees at the premises;
2833(f) The following information:
2834(1) A description of inventory control procedures sufficient to demonstrate how the applicant
2835will comply with the requirements of Section 40282 of Title 17 of the California Code of
2836Regulations, or a copy of the standard operating procedure addressing inventory control;
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2839(2) A description of quality control procedures sufficient to demonstrate how the applicant will
2840comply with all of the applicable requirements specified in Sections 40232-40268 of Title 17 of
2841the California Code of Regulations or a copy of the standard operating procedure addressing
2842quality control;
2843(3) A description of security procedures sufficient to demonstrate how the applicant will comply
2844with the requirements of Section 40200 of Title 17 of the California Code of Regulations, or a
2845copy of the standard operating procedure addressing security procedures;
2846(4) A description of the waste disposal procedures sufficient to demonstrate how the applicant
2847will comply with the requirements of Section 40290 of Title 17 of the California Code of
2848Regulations, or a copy of the standard operating procedure addressing waste management.
2849(g) Any manufacturer submitting operating procedures and protocols to the Department pursuant
2850to the Act and this chapter may claim such information as a trade secret or confidential by clearly
2851identifying such information as “confidential” on the document at the time of submission. Any
2852claim of confidentiality by a manufacturer must be based on the manufacturer’s good faith belief
2853that the information marked as confidential constitutes a trade secret as defined in Civil Code
2854section 3426.1(d) or is otherwise exempt from public disclosure under the California Public
2855Records Act in Government Code section 6250 et seq.
2856Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050,
285726051.5, 26055, and 26070, Business and Professions Code.
2858§ 5507 Microbusiness Records for Licensees Engaging in Manufacturing Activities
2859In addition to the records required by section 5037 of this division, a microbusiness engaging in
2860manufacturing activities shall maintain the following records:
2861(a) Records related to quality of raw materials and ingredients, per section 40252 of Title 17 of
2862the California Code of Regulations.
2863(b) Records related to manufacturing operations, per section 40254 of Title 17 of the California
2864Code of Regulations.
2865(c) Records related to written hazard analysis, per section 40256 of Title 17 of the California
2866Code of Regulations.
2867(d) Records related to preventative controls, per section 40258 of Title 17 of the California Code
2868of Regulations.
2869(e) Records related to the master manufacturing protocol, per section 40262 of Title 17 of the
2870California Code of Regulations.
2871(f) Batch production record, per section 40264 of Title 17 of the California Code of Regulations.
2872(g) Records related to product complaints, per section 40266 of Title 17 of the California Code
2873of Regulations.
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2875
2876(h) Records related to recalls, per section 40268 of Title 17 of the California Code of
2877Regulations.
2878Authority: Section 26013, Business and Professions Code. Reference: Sections 26160, Business
2879and Professions Code.
2880Chapter 5. CANNABIS EVENTS
2881§ 5600. Cannabis Event Organizer License
2882(a) To obtain a temporary cannabis event license, the event organizer must first apply for and
2883obtain a cannabis event organizer license.
2884(b) Cannabis event organizers licensed under this section shall comply with chapter 1 of this
2885division except for sections 5001-5002, 5006-5008, 5010, 5016, 5019, 5025-5029, 5032-5034,
2886and 5042-5044, and 5046-5055.
2887(c) A cannabis event organizer licensee is not authorized or licensed to cultivate, distribute,
2888manufacture, or retail cannabis or cannabis products without first obtaining the appropriate
2889licenses or authorizations to engage in such commercial cannabis activities.
2890(d) A cannabis event organizer shall comply with the records retention provisions of section
28915037 of this division. Records shall be kept by the cannabis event organizer in a manner that
2892allows the records to be produced for the Bureau in either hard copy or electronic form,
2893whichever the Bureau requests. Failure to produce records upon the Bureau’s request may result
2894in disciplinary action against the cannabis event organizer license and/or denial of a temporary
2895cannabis event license.
2896(e) Cannabis event organizer applications may be completed online at www.bcc.ca.gov or by
2897delivering a printed copy to the Bureau’s office(s).
2898(f) Applicants who submit their applications online shall first register for a user account as
2899provided by section 5002(b) of this division.
2900(g) An application must be completed by an owner as defined by Business and Professions Code
2901section 26001(al). An application for cannabis event organizer licensure includes the following:
2902(1) The name of the applicant. For applicants who are individuals, the applicant shall provide
2903both the first and last name of the individual. For applicants who are business entities, the
2904applicant shall provide the legal business name of the applicant.
2905(2) If applicable, the business trade name (“DBA”) of the applicant.
2906(3) Payment of an application fee pursuant to section 5014 of this division.
2907(4) Whether the owner is serving or has previously served in the military. Disclosure of military
2908service is voluntary. An applicant who has served as an active duty member of the Armed Forces
2909of the United States and was honorably discharged and who can provide evidence of such
2910honorable discharge shall have his or her application expedited pursuant to Business and
2911Professions Code section 115.4.
2912
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2915(5) A list of the license types and the license numbers issued from the Bureau and all other state
2916cannabis licensing authorities that the applicant holds, including the date the license was issued
2917and the licensing authority that issued the license.
2918(6) Whether the applicant has been denied a license or has had a license suspended or revoked by
2919the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of
2920license applied for, the name of the licensing authority that denied the application, and the date
2921of denial.
2922(7) The mailing address for the applicant.
2923(8) The telephone number for the applicant.
2924(9) The website address of the applicant’s business, if applicable.
2925(10) The email address for the applicant’s business.
2926(11) Contact information for the applicant’s designated primary contact person including the
2927name, title, phone number, and email address of the individual.
2928(12) The federal employer identification number for the applicant’s business.
2929(13) A description of the business organizational structure of the applicant, such as partnership or
2930corporation.
2931(14) The business-formation documents, which may include, but are not limited to, articles of
2932incorporation, operating agreements, partnership agreements, and fictitious business name
2933statements. The applicant shall also provide all documents filed with the California Secretary of
2934State, which may include, but are not limited to, articles of incorporation, certificates of stock,
2935articles of organization, certificates of limited partnership, and statements of partnership
2936authority. If the commercial cannabis business is held in trust, the applicant shall provide a copy
2937of the trust.
2938(15) A list of every fictitious business name the applicant is operating under including the
2939address where the business is located.
2940(16) An applicant that is a foreign corporation shall include in its application the certificate of
2941qualification issued by the California Secretary of State under Corporations Code section 2105.
2942(17) The applicant shall supply the following financial information:
2943(A) A list of funds belonging to the applicant’s cannabis event organizing business held in
2944savings, checking, or other accounts maintained by a financial institution. The applicant shall
2945provide, for each account, the financial institution’s name, the financial institution’s address,
2946account type, account number, and the amount of money in the account.
2947(B) A list of loans made to the applicant for its use in cannabis event organizing activities. For
2948each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the
2949loan, security provided for the loan, and the name, address, and phone number of the lender.
2950(C) A list of investments made into the applicant’s cannabis event organizing activities. For each
2951investment, the applicant shall provide the amount of the investment, the date of the investment,
2952term(s) of the investment, and the name, address, and phone number of the investor.
2953
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2956(D) A list of all gifts of any kind given to the applicant for its use in cannabis event organizing
2957activities. For each gift, the applicant shall provide the value of the gift or description of the gift,
2958and the name, address, and phone number of the provider of the gift.
2959(18) A complete list of every individual that has a financial interest in the cannabis event
2960organizing business as defined in section 5004 of this division, who is not an owner as defined in
2961Business and Professions Code section 26001(al).
2962(19) A complete list of every owner of the applicant as defined in Business and Professions Code
2963section 26001(al). Each individual named on this list shall submit the following information:
2964(A) The full name of the owner.
2965(B) The owner’s title within the applicant entity.
2966(C) The owner’s date of birth and place of birth.
2967(D) The owner’s social security number or individual taxpayer identification number.
2968(E) The owner’s mailing address.
2969(F) The owner’s telephone number. This may include a number for the owner’s home, business,
2970or mobile telephone.
2971(G) The owner’s email address.
2972(H) The owner’s current employer.
2973(I) The percentage of the ownership interest held in the applicant entity by the owner.
2974(J) Whether the owner has an ownership or a financial interest as defined in sections 5003 and
29755004, respectively, of this division in any other commercial cannabis business licensed under the
2976Act.
2977(K) A copy of the owner’s government-issued identification. Acceptable forms of identification
2978are a document issued by a federal, state, county, or municipal government that includes the
2979name, date of birth, height, gender, and picture of the person, such as a driver license.
2980(L) A detailed description of the owner’s convictions. A conviction within the meaning of this
2981section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
2982Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must
2983be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent
2984non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300
2985that did not involve alcohol, dangerous drugs, or controlled substances do not need to be
2986included. For each conviction, the owner shall provide the following:
2987(i) The date of conviction.
2988(ii) Dates of incarceration, if applicable.
2989(iii) Dates of probation, if applicable.
2990
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2992
2993(iv) Dates of parole, if applicable.
2994(v) A detailed description of the offense for which the owner was convicted.
2995(vi) A statement of rehabilitation for each conviction. The statement of rehabilitation is to be
2996written by the owner and may contain evidence that the owner would like the Bureau to consider
2997that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the
2998statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation
2999under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or
3000professional counselors that contain valid contact information for the individual providing the
3001reference.
3002(M) If applicable, a detailed description of any administrative orders or civil judgements for
3003violations of labor standards, any suspension of a commercial cannabis license, revocation of a
3004commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a
3005licensing authority, local agency, or state agency against the applicant or a business entity in
3006which the applicant was an owner or officer within the three years immediately preceding the
3007date of the application.
3008(N) Attestation to the following statement: Under penalty of perjury, I hereby declare that the
3009information contained within and submitted with the application is complete, true, and accurate. I
3010understand that a misrepresentation of fact is cause for rejection of this application, denial of the
3011license, or revocation of a license issued.
3012(20) For an applicant with 20 or more employees, the applicant shall attest that the applicant has
3013entered into a labor peace agreement and will abide by the terms of the agreement. The applicant
3014shall submit a copy of the page of the labor peace agreement that contains signatures of the union
3015representative and the applicant. For applicants who have not yet entered into a labor peace
3016agreement, the applicant shall provide a notarized statement indicating the applicant will enter
3017into and abide by the terms of a labor peace agreement as soon as reasonably practicable after
3018licensure.
3019(21) The limited waiver of sovereign immunity required by section 5009 of this division, if
3020applicable.
3021Authority: Sections 115.4 and 26013, Business and Professions Code. Reference: Sections 115.4,
3022144, 26012, and 26200, Business and Professions Code.
3023§ 5601. Temporary Cannabis Event License
3024(a) A temporary cannabis event license authorizes a licensed cannabis event organizer to hold a
3025temporary cannabis event where the onsite sale and consumption of cannabis goods is authorized
3026at the location indicated on the license during the dates indicated on the license.
3027(b) A temporary cannabis event license shall only be issued to a person who holds a cannabis
3028event organizer license issued by the Bureau.
3029(c) Violations of the requirements applicable to temporary cannabis events may result in
3030disciplinary action against the cannabis event organizer license or any other licenses held by a
3031
3032Bureau of Cannabis Control Regular Regulations Text Page 79 of 136
3033
3034licensee participating in the temporary cannabis event and responsible for the violation under
3035Business and Professions Code section 26070.5.
3036(d) A temporary cannabis event license shall only be issued for a single day or up to 4
3037consecutive days. No temporary cannabis event license will be issued for more than 4 days.
3038(e) An application for a temporary cannabis event license shall be submitted to the Bureau no
3039less than 60 days before the first day of the temporary cannabis event.
3040(f) A temporary cannabis event may only be held on the grounds of a county fair or district
3041agricultural association. Temporary cannabis events are not required to take place on the same
3042dates as the county fairs or district agricultural association events at these locations.
3043(g) A temporary cannabis event license shall not be issued for a premises that is licensed for the
3044sale of alcohol or tobacco.
3045(h) An application for a temporary cannabis event license shall include the following:
3046(1) The name of the applicant. For applicants who are individuals, the applicant shall provide
3047both the first and last name of the individual. For applicants who are business entities, the
3048applicant shall provide the legal business name of the applicant.
3049(2) The license number for each state cannabis license held by the applicant.
3050(3) The address of the location where the temporary cannabis event will be held.
3051(4) The name of the temporary cannabis event.
3052(5) A diagram of the physical layout of the temporary cannabis event. The diagram shall clearly
3053indicate where the temporary cannabis event will be taking place on the location grounds, all
3054entrances and exits that will be used by participants during the event, all cannabis consumption
3055areas, and all retail areas where cannabis goods will be sold. The hours during which cannabis
3056goods will be sold shall be noted on the diagram. The diagram shall also clearly indicate the area
3057where cannabis waste will be stored, all areas where cannabis goods will be stored, and the
3058specific location of each cannabis licensee who will be participating in the event. Each cannabis
3059licensee participating in the event shall be identified with an assigned temporary cannabis event
3060location number. The diagram shall not contain highlighting and the markings on the diagram
3061shall be in black-and-white print.
3062(6) The dates and hours of operation for which the temporary cannabis event license is being
3063sought. A temporary event license is required for any date in which the applicant engages in
3064onsite cannabis sales or allows onsite cannabis consumption.
3065(7) Contact information for the applicant’s designated primary contact person regarding the
3066temporary event license, including the name, title, address, phone number, and email address of
3067the individual.
3068(8) Contact information for a designated contact person(s) who shall be onsite at the event and
3069reachable by telephone at all times that the event is occurring.
3070(9) A cannabis waste management plan in accordance with section 5002(c)(29)(E) of this
3071division.
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3073
3074(10) Written approval from the local jurisdiction authorizing the applicant to engage in onsite
3075cannabis sales to, and onsite consumption by, persons 21 years of age or older at the temporary
3076cannabis event.
3077(11) A list of all licensees and employees that will be providing onsite sales of cannabis goods at
3078the temporary cannabis event.
3079(12) Attestation to the following statement: Under penalty of perjury, I hereby declare that the
3080information contained within and submitted with the application is complete, true, and accurate. I
3081understand that a misrepresentation of fact is cause for rejection of this application, denial of the
3082license, or revocation of a license issued.
3083(i) If the list of licensees and employees participating in the temporary cannabis event changes
3084after the application is submitted or after the license is issued, the applicant shall submit an
3085updated list and an updated diagram, as required in subsection (f)(5) of this section, to the
3086Bureau no less than 72 hours before the event. Licensees not on the list submitted to the Bureau
3087shall not participate in the temporary cannabis event.
3088(j) The event organizer shall hire or contract for security personnel to provide security services at
3089the licensed temporary cannabis event. All security personnel hired or contracted for by the
3090licensee shall be at least 21 years of age, licensed by the Bureau of Security and Investigative
3091Services, and comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions
3092Code. Security personnel shall be present on the licensed premises at all times cannabis goods
3093are available for sale and/or cannabis consumption is allowed on the licensed premises.
3094(k) A cannabis event organizer shall maintain a clearly legible sign, not less than 7” x 11” in size
3095reading, “No Persons Under 21 Allowed” at or near each public entrance to any area where the
3096sale or consumption of cannabis goods is allowed. The lettering of the sign shall be no less than
30971 inch in height.
3098(l) All cannabis waste generated at a temporary cannabis event shall be collected and disposed of
3099in accordance with the requirements of sections 5054 and 5055 of this division. The cannabis
3100event organizer may contract or arrange for the collection and disposal of cannabis waste
3101generated during the temporary cannabis event.
3102(m) A cannabis event organizer and all other licensees participating in a temporary cannabis
3103event are required to comply with section 5037 of this division and all other applicable
3104requirements in the Act and this division pertaining to record keeping.
3105Authority: Section 26013, Business and Professions Code. Reference: Section 26012 and 26200,
3106Business and Professions Code.
3107§ 5602. Temporary Cannabis Event Sales
3108(a) Only persons age 21 or older may purchase and consume cannabis goods at a temporary
3109cannabis event. Prior to selling cannabis goods to a customer, the licensee making the sale shall
3110confirm, using valid identification as specified in section 5404 of this division, the age and
3111identity of the customer.
3112
3113Bureau of Cannabis Control Regular Regulations Text Page 81 of 136
3114
3115(b) All sales of cannabis goods at a temporary cannabis event must occur in a retail area as
3116designated in the premises diagram pursuant to section 5601(h)(5) of this division.
3117(c) Each sale at a temporary cannabis event shall be performed by a licensed retailer or licensed
3118microbusiness. The cannabis event organizer may also sell cannabis goods at the temporary
3119cannabis event if the organizer separately holds a license authorizing the retail sale of cannabis
3120goods.
3121(1) Licensed retailers or licensed microbusinesses shall only conduct sales activities within their
3122specifically assigned area, identified in the diagram of the physical layout of the temporary
3123cannabis event.
3124(2) Mobile sales activities via wagon, cart, or similar means are prohibited at the temporary
3125cannabis event site.
3126(d) Licensed retailers or licensed microbusinesses must prominently display their temporary
3127cannabis event location number and state license within plain sight of the public.
3128(e) All sales at a temporary cannabis event shall occur on the dates stated on the license and shall
3129occur at the location stated on the license. All onsite sales of cannabis goods must comply with
3130the hours of operation requirements of section 5403 of this division.
3131(f) Sale of alcohol or tobacco shall not be allowed on the licensed temporary cannabis event
3132premises.
3133(g) The cannabis goods sold onsite at a temporary cannabis event shall be transported by a
3134licensed distributor or licensed microbusiness in compliance with the Act and this division. All
3135shipments of cannabis and non-cannabis goods intended for sale at a temporary cannabis event
3136must be checked by the temporary cannabis event organizer staff to prevent prohibited items,
3137such as alcohol and tobacco, from entering the licensed premises.
3138(h) Except small amounts of cannabis goods used for display, all cannabis goods for sale at a
3139temporary cannabis event shall be stored in a secure, locked container that is not accessible to the
3140public. Cannabis goods being stored by a licensee at a temporary cannabis event shall not be left
3141unattended. Licensees may share the secure, locked container; however, each licensee using the
3142container shall be held responsible for any violations of this section and subject to disciplinary
3143action.
3144(i) All cannabis goods at a cannabis event shall comply with all requirements cannabis goods for
3145retail sale within the Act and section 5406 of this division.
3146(j) All cannabis goods at a temporary cannabis event shall comply with all track and trace
3147requirements within the Act and this division.
3148(k) All cannabis goods used for display at a temporary cannabis event shall comply with the
3149requirements of section 5405 of this division.
3150(l) All cannabis goods sold at a temporary cannabis event shall be placed in an exit package
3151pursuant to section 5413 of this division.
3152(m) All customer returns of cannabis goods at a temporary cannabis event shall comply with
3153section 5410 of this division.
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3155
3156(n) The daily sales limits under section 5409 of this division apply to all sales made at a
3157temporary cannabis event.
3158(o) A licensed retailer shall only provide free cannabis goods to a person at a temporary cannabis
3159event if the licensed retailer complies with all requirements of section 5411 of this division.
3160(p) The cannabis event organizer shall be responsible for ensuring that all rules and requirements
3161for the onsite sale of cannabis goods are followed.
3162(q) Any compensation paid from a licensed retailer to a cannabis event organizer for
3163participation in a temporary cannabis event shall not be determined based on, or be contingent
3164on, the sale of cannabis goods.
3165Authority: Section 26013, Business and Professions Code. Reference: Section 26070 and 26200,
3166Business and Professions Code.
3167§ 5603. Temporary Cannabis Event Consumption
3168(a) Access to the area where cannabis consumption is allowed shall be restricted to persons 21
3169years of age or older.
3170(b) The event organizer licensee shall ensure that cannabis consumption is not visible from any
3171public place or non-age-restricted area.
3172(c) Consumption of alcohol or tobacco shall not be allowed on the licensed premises.
3173(d) All requirements for onsite cannabis consumption imposed by the relevant local jurisdiction
3174shall be followed and smoking of cannabis goods shall be prohibited in any areas where smoking
3175is prohibited by law.
3176(e) The cannabis event organizer, who holds the temporary cannabis event license, shall be
3177responsible for ensuring that all rules and requirements for the onsite consumption of cannabis
3178goods are followed.
3179(f) A cannabis event organizer and all other licensees participating in a temporary cannabis event
3180are required to follow all applicable requirements in this division pertaining to record keeping
3181and waste management.
3182(hg)
3183Any compensation paid from a licensed retailer to a cannabis event organizer for
3184participation in a temporary cannabis event shall not be determined based on, or tied to, the sale
3185of cannabis goods.
3186
3187Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business
3188and Professions Code.
3189
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3191
3192Chapter 6. TESTING LABORATORIES
3193Article 1. Chapter Definitions
3194§ 5700. Definitions
3195In addition to the definitions in section 5000 of this division, the following definitions apply to
3196this chapter.
3197(a) “Acceptance criteria” means the specified limits placed on the characteristics of an item or
3198method that are used to determine data quality.
3199(b) “Accredited college or university” means a college or university accredited by a regional or
3200national accrediting agency that is an accreditor recognized by the Secretary of the US
3201Department of Education.
3202(c) “Accreditation body” means an impartial non-profit organization that operates in
3203conformance with the International Organization for Standardization (ISO) / International
3204Electrotechnical Commission (IEC) standard 17011 and is a signatory to the International
3205Laboratory Accreditation Cooperation (ILAC) Mutual Recognition Arrangement (MRA) for
3206Testing.
3207(d) “Action level” means the threshold value that provides the criterion for determining whether
3208a sample passes or fails an analytical test.
3209(e) “Analyte” means a chemical, compound, element, bacteria, yeast, fungus, or toxin to be
3210identified or measured.
3211(f) “Analytical batch” means a set of no more than 20 samples that is prepared together for the
3212same analysis and are prepared with laboratory quality control (LQC) samples.
3213(g) “Analytical method” means a technique used qualitatively or quantitatively to determine the
3214composition of a sample or a microbial contamination of a sample.
3215(h) “Analytical sequence” means a group of samples that are analyzed sequentially using the
3216same instrument calibration curve.
3217(i) “Cannabinoid” means a class of diverse chemical compounds derived from a cannabis plant.
3218(j) “CAS number” means the unique numerical identifier assigned to every chemical substance
3219by Chemical Abstracts Service, a division of the American Chemical Society.
3220(k) “CBD” means cannabidiol, CAS number 13956-29-1.
3221(l) “CBDA” means cannabidiolic acid, CAS number 1244-58-2.
3222(m) “CBG” means cannabigerol, CAS number 25654-31-3.
3223(n) “CBN” means cannabinol, CAS number 521-35-7.
3224
3225Bureau of Cannabis Control Regular Regulations Text Page 84 of 136
3226
3227(o) “Certificate of accreditation” means a document issued by an accreditation body that attests
3228to the laboratory’s competence to carry out specific testing analysis.
3229(p) “Certificate of analysis” (COA) means the report prepared by the laboratory about the
3230analytical testing performed and results obtained by the laboratory.
3231(q) “Certified reference material” means a reference material prepared by a certifying body or a
3232party independent of the laboratory with ISO/IEC 17034 accreditation.
3233(r) “Chain of Custody” (COC) means the chronological documentation that records the sequence
3234of custody, control, transfer, analysis, and disposal of a sample.
3235(s) “Coefficient of Determination” (commonly denoted as “r2”) means a statistical measure that
3236determines how well the regression approximates the actual data points in the calibration curve,
3237with a regression of 1 being a perfect fit.
3238(t) “Continuing calibration verification” (CCV) means a type of quality control sample that is a
3239mid-range calibration standard which checks the continued validity of the initial calibration of
3240the instrument.
3241(u) “Corrective action” means an action taken by the laboratory to resolve, and prevent from
3242recurrence, a problem with the technical operations of the laboratory.
3243(v) “Exclusivity” means the specificity of the-test method for validating microbial testing
3244methods. It evaluates the ability of the method to distinguish the target organisms from similar
3245but genetically distinct non-target organisms.
3246(w) “Foreign material” means any filthy, putrid, or decomposed substance including hair, insects,
3247excreta, or related adulterant that may be hazardous or cause illness or injury to the consumer.
3248(x) “Frequency” means the number of items occurring in each category. Frequency may be
3249determined by analytical method or laboratory specific requirements for accuracy, precision of
3250the analysis, or statistical calculation.
3251(y) “Inclusivity” means, related to microbiological method validation, the sensitivity of the test
3252method. It evaluates the ability of the test method to detect a wide range of target organisms by a
3253defined relatedness.
3254(z) “Inhalable” means consumable in gaseous or vapor form through the lungs.
3255(aa) “Initial Calibration Verification” (ICV) means a solution of targeted method analytes of
3256known concentration that is obtained from a source external to the laboratory and different from
3257the source of calibration standards.
3258(bb) “ISO/IEC” means the joint technical committee of the International Organization for
3259Standardization (ISO) and the International Electrotechnical Commission (IEC).
3260(cc) “ISO/IEC 17025” means the general requirements specified by the ISO/IEC for the
3261competence of testing and calibration laboratories.
3262Bureau of Cannabis Control Regular Regulations Text Page 85 of 136
3263
3264(dd) “ISO/IEC 17034” means the general requirements established by the ISO/IEC for the
3265competence of reference material producers.
3266(ee) “ISO/IEC 17043” means the general requirements established by the ISO/IEC for
3267proficiency testing.
3268(ff) “Laboratory” means “testing laboratory” as defined at Business and Professions Code section
326926001(at).
3270(gg) “Laboratory Control Sample” (LCS) means a blank matrix to which known concentrations
3271of the target method analytes are added. The LCS is analyzed in the same manner as the
3272representative sample.
3273(hh) “Laboratory replicate sample” means a sub-sample taken of the representative sample used
3274for laboratory quality control purposes to demonstrate reproducibility. It is prepared and
3275analyzed in the identical manner as the representative sample. The results from replicate analyses
3276are used to evaluate analytical precision.
3277(ii) “Laboratory employee” means any person directly employed by the laboratory for wages,
3278salary, barter, or trade by the laboratory and who is not employed by any other licensee under the
3279Act except for another testing laboratory. Laboratory employee does not mean independent
3280contractor, third party entity or any other entity acting on behalf of the laboratory.
3281(jj) “Laboratory quality assurance” means the set of operating principles that enable laboratories
3282to produce defensible data of known accuracy and precision and includes employee training,
3283equipment preventative maintenance procedures, calibration procedures, and quality control
3284testing, among other things.
3285(kk) “Limit of detection” (LOD) means the lowest quantity of a substance or analyte that can be
3286distinguished from the absence of that substance within a stated confidence limit.
3287(ll) “Limit of quantitation” (LOQ) means the minimum concentration of an analyte in a specific
3288matrix that can be reliably quantified while also meeting predefined goals for bias and
3289imprecision.
3290(mm) “Matrix” means the substances that are present in a sample except for the analyte(s) of
3291interest.
3292(nn) “Matrix spike sample” means a sample prepared by adding a known quantity of the target
3293analyte to a sample matrix or to a matrix that is as closely representative of the matrix being
3294analyzed as possible.
3295(oo) “Method blank” means an analyte free matrix to which all reagents are added in the same
3296volumes or proportions as used in the sample preparation and is processed in exactly the same
3297manner as the samples.
3298(pp) “Moisture content” means the percentage of water in a sample, by weight.
3299(qq) “Non-target organism” means an organism that the test method or analytical procedure is
3300not testing for and can be used in evaluating the specificity of a test method.
3301Bureau of Cannabis Control Regular Regulations Text Page 86 of 136
3302
3303(rr) “Percent recovery” means the percentage of a measured concentration relative to the added
3304(spiked) concentration in a reference material or matrix spike sample. A laboratory shall
3305calculate the percent recovery by dividing the sample result by the expected result then
3306multiplying the quotient by 100.
3307(ss) “Practical experience” means experience performing scientific analytical tests in a laboratory
3308setting using equipment, instruments, kits, and materials routinely found in a laboratory.
3309Practical experience includes experience in any type of laboratory setting and is not limited to
3310cannabis-specific laboratories.
3311(tt) “Proficiency test” means an evaluation of a laboratory’s performance against pre-established
3312criteria by means of interlaboratory comparisons of test measurements.
3313(uu) “Proficiency test sample” means a sample that is prepared by a party independent of the
3314testing laboratory with the ISO/IEC 17043 accreditation, where the concentration and identity of
3315an analyte that is known to the independent party, but is unknown to the testing laboratory and
3316testing laboratory employees.
3317(vv) “Quality control” means the set of measures implemented within an analytical procedure to
3318ensure that the measurement system is operating in a state of statistical control for which errors
3319have been reduced to acceptable levels.
3320(ww) “Quality control sample” means a sample that is produced and used by a laboratory for the
3321purpose of assuring the quality of the data and results. Quality control samples include blank
3322samples, matrix spike samples, laboratory control samples, replicate samples, and reference
3323material samples.
3324(xx) “Reagent” means a compound or mixture added to a system to cause a chemical reaction or
3325test if a reaction occurs. A reagent may be used to tell whether a specific chemical substance is
3326present by causing a reaction to occur with the chemical substance.
3327(yy) “Reference material” means material containing a known concentration of an analyte of
3328interest that is in solution or in a homogeneous matrix.
3329(zz) “Reference method” means the method by which the performance of an alternate method is
3330measured or evaluated.
3331(aaa) “Relative percent difference” means the comparative statistic that is used to calculate
3332precision or random error. RPD is calculated using the following equation:
3333RPD = │ (representative sample measurement – replicate sample measurement) │ /
3334([representative sample measurement + replicate sample measurement] / 2) × 100%
3335(bbb) “Relative standard deviation” means the standard deviation expressed as a percentage of
3336the means recovery. RSD is calculated using the following equation:
3337RSD = (s / x) × 100%; where s = standard deviation and x = mean
3338(ccc) “Representative” means a small quantity of the batch whose characteristics represent, as
3339accurately as possible, the entire batch, thus allowing the results to be generalized.
3340Bureau of Cannabis Control Regular Regulations Text Page 87 of 136
3341
3342(ddd) “Representative sample” means a sample that is comprised of several increments of either
3343cannabis goods that are collected from a batch for testing.
3344(eee) “Requester” means the person who submits a request to the laboratory for testing of
3345cannabis goods from an entity licensed under this division.
3346(fff) “Reserve sample” means any portion of a representative sample that was not used in the
3347testing process.
3348(ggg) “Sample” means a representative part of, or a single item from, a batch which is comprised
3349of several sample increments.
3350(hhh) “Sample increment” means a portion of a batch that, together with other increments, makes
3351up the sample.
3352(iii) “Sampler” means the laboratory employee responsible for obtaining samples of cannabis
3353goods from a licensed distributor or licensed microbusiness.
3354(jjj) “Sanitize” means to sterilize, disinfect, or make hygienic.
3355(kkk) “Scope of accreditation” means the tests or types of tests performed, materials or products
3356tested, and the methods used for testing cannabis or cannabis products for which the
3357accreditation has been granted.
3358(lll) “Standard operating procedure” (SOP) means a written document that provides detailed
3359instructions for the performance of all aspects of an analysis, operation, or action.
3360(mmm) “Tamper-evident” means a one-time-use security tape or seal that is affixed to the
3361opening of a package, allowing a person to recognize whether the package has been opened.
3362(nnn) “Target organism” means an organism that is being tested for in an analytical procedure or
3363test method.
3364(ooo) “THC” and “delta-9 THC” means tetrahydrocannabinol, CAS number 1972-08-3.
3365(ppp) “THCA” means tetrahydrocannabinolic acid, CAS number 23978-85-0.
3366(qqq) “Validation” means the confirmation by examination and objective evidence that the
3367requirements for a specific intended use or analytical method are fulfilled.
3368(rrr) “Water activity” means the measure of the quantity of water in a product that is available
3369and therefore capable of supporting bacteria, yeasts, and fungi and which is reported in units Aw.
3370Authority: Section 26013, Business and Professions Code. Reference: Sections 26013 and
337126100, Business and Professions Code.
3372
3373Bureau of Cannabis Control Regular Regulations Text Page 88 of 136
3374
3375Article 2. Laboratory License
3376§ 5701. General Laboratory License Requirements
3377(a) A licensed laboratory shall maintain ISO/IEC 17025 accreditation for the testing of the
3378following:
3379(1) Cannabinoids;
3380(2) Heavy metals;
3381(3) Microbial impurities;
3382(4) Mycotoxins;
3383(5) Residual pesticides;
3384(6) Residual solvents and processing chemicals; and
3385(7) If tested, terpenoids.
3386(b) Each testing laboratory licensed premises shall have ISO/IEC 17025 accreditation.
3387(c) A licensed laboratory shall retain, and make available to the Bureau upon request, all records
3388associated with the licensee’s ISO/IEC 17025 certificate of accreditation.
3389Authority: Section 26013, Business and Professions Code. Reference: Section 26100, Business
3390and Professions Code
3391§ 5702. Laboratory License Application
3392In addition to the information required in section 5002 of this division, an application for a
3393testing laboratory license includes the following:
3394(a) A valid certificate of accreditation, issued by an accreditation body, that attests to the
3395laboratory’s competence to perform testing, including all the required analytes for the following
3396test methods:
3397(1) Cannabinoids;
3398(2) Heavy metals;
3399(3) Microbial impurities;
3400(4) Mycotoxins;
3401(5) Residual pesticides;
3402(6) Residual solvents and processing chemicals; and
3403(7) If tested, terpenoids.
3404Bureau of Cannabis Control Regular Regulations Text Page 89 of 136
3405
3406(b) Standard operating procedures for the following testing methods:
3407(1) Cannabinoids;
3408(2) Heavy metals;
3409(3) Microbial impurities;
3410(4) Moisture content and water activity;
3411(5) Mycotoxins;
3412(6) Residual pesticides;
3413(7) Residual solvents and processing chemicals; and
3414(8) If tested, terpenoids.
3415(c) Method validation report for the following testing methods:
3416(1) Cannabinoids;
3417(2) Foreign material;
3418(3) Heavy metals;
3419(4) Microbial impurities;
3420(5) Moisture content and water activity;
3421(6) Mycotoxins;
3422(7) Residual pesticides;
3423(8) Residual solvents and processing chemicals; and
3424(9) If tested, terpenoids.
3425(d) Standard operating procedures for the sampling of cannabis goods.
3426Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26050,
342726051.5, 26055, 26102 and 26104, Business and Professions Code
3428§ 5703. Provisional Testing Laboratory License
3429(a) A laboratory may apply for a provisional license prior to receiving ISO/IEC 17025
3430accreditation provided that the applicant meets all other licensure requirements for a testing
3431laboratory and submits to the Bureau an application in compliance with section 5002 of this
3432division and an attestation that the applicant has or intends to seek ISO/IEC 17025 accreditation
3433for all testing methods required by this division.
3434(b) A provisional testing laboratory license shall be valid for 12 months. The annual license fee
3435for a provisional license shall be determined pursuant to section 5014 of this division.
3436Bureau of Cannabis Control Regular Regulations Text Page 90 of 136
3437
3438(c) To timely renew a provisional license, a completed license renewal form and the annual
3439renewal license fee pursuant to section 5014 of this division shall be received by the Bureau from
3440the licensee no earlier than 60 calendar days before the expiration of the license and no later than
34415:00 p.m. Pacific Time on the last business day before the expiration of the license if the renewal
3442form is submitted to the Bureau at its office(s), or no later than 11:59 p.m. on the last business
3443day before the expiration of the license if the renewal form is submitted to the Bureau through its
3444electronic licensing system. Failure to receive a notice for license renewal does not relieve a
3445licensee of the obligation to renew a provisional license as required.
3446(d) In the event the license is not renewed prior to the expiration date, the licensee must not test
3447any commercial cannabis goods until the license is renewed.
3448(e) A licensee may submit a license renewal form up to 30 calendar days after the license
3449expires. Any late renewal form will be subject to a late fee equal to 50 percent of the applicable
3450licensing fees required by subsection (c) of this section.
3451(f) The license renewal application shall contain the following:
3452(1) The name of the licensee. For licensees who are individuals, the applicant shall provide both
3453the first and last name of the individual. For licensees who are business entities, the licensee shall
3454provide the legal business name of the applicant;
3455(2) The license number and expiration date;
3456(3) The licensee’s address of record and licensed premises address; and
3457(4) An attestation that all information provided to the Bureau in the original application under
3458section 5002 of this division or subsequent notification under section 5023 of this division is
3459accurate and current.
3460(g) The Bureau may renew a provisional license for an initial renewal period of 12 months.
3461(h) After one renewal, the Bureau may renew the provisional license for additional 12-month
3462periods if the licensee has submitted an application for the ISO/IEC 17025 accreditation. In
3463addition to the information required for a renewal form pursuant to subsection (f) of this section,
3464any renewal request pursuant to this section shall also include an attestation that the licensee’s
3465application for each ISO/IEC 17025 is pending with the accrediting body, the name of the
3466accrediting body, and the date the application was submitted to the accrediting body.
3467(i) The licensee shall notify the Bureau if the application for each ISO/IEC 17025 accreditation is
3468granted or denied within 5 business days of receiving the decision from the accrediting body. If
3469the accrediting body grants or denies the licensee’s application for any ISO/IEC 17025
3470accreditation before the expiration of the provisional license, the Bureau may terminate the
3471provisional license at that time.
3472(j) The Bureau may revoke a provisional license at any time.
3473Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031,
3474and 26050, Business and Professions Code.
3475Bureau of Cannabis Control Regular Regulations Text Page 91 of 136
3476
3477Article 3. Sampling Cannabis and Cannabis Products
3478§ 5704. Sampling Standard Operating Procedures
3479(a) The laboratory shall develop and implement a sampling standard operating procedure (SOP)
3480that describes the laboratory’s method for obtaining representative samples of cannabis goods.
3481The laboratory shall use and submit to the Bureau Sampling – Standard Operating Procedures,
3482Form BCC-LIC-021 (New 7/18), which is incorporated herein by reference.
3483(b) The laboratory shall retain a copy of the sampling SOP on the licensed laboratory premises
3484and ensure that the sampling SOP is accessible to the sampler during sampling.
3485Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102,
348626104 and 26110, Business and Professions Code.
3487§ 5705. General Sampling Requirements
3488(a) The laboratory that obtains a representative sample from a licensed distributor or licensed
3489microbusiness shall perform all the required testing at one licensed laboratory premises.
3490(b) The laboratory may obtain and analyze samples only from batches in final form as required
3491by Business and Professions Code section 26100.
3492(c) The laboratory sampler shall collect a representative sample following the procedures
3493specified in the laboratory’s sampling standard operating procedure(s).
3494(d) The laboratory shall collect a representative sample from each batch.
3495(e)The laboratory shall ensure that the sample is transported and subsequently stored at the
3496laboratory in a manner that prevents degradation, contamination, commingling, and tampering. If
3497the cannabis good specifies on the label how the cannabis good shall be stored, the laboratory
3498shall store the sample as indicated on the label.
3499(f) The laboratory shall complete a chain of custody form for each sample that the laboratory
3500collects and analyzes.
3501Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3502and 26110, Business and Professions Code.
3503§ 5706. Chain of Custody (COC)
3504(a) The laboratory shall develop and implement a COC protocol to ensure accurate
3505documentation is recorded for the transport, handling, storage, and destruction of samples.
3506(b) The COC protocol shall require the use of a COC form. The sampler shall use a COC to
3507record the following information for each sampled batch:
3508(1) Laboratory’s name, physical address, and license number;
3509(2) Date and time sampling started and ended;
3510Bureau of Cannabis Control Regular Regulations Text Page 92 of 136
3511
3512(3) Licensed distributor or licensed microbusiness’ name, physical address, and license number;
3513(4) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, physical
3514address, and license number;
3515(5) Batch number of the batch from which the representative sample was obtained and assigned
3516unique sample identifier;
3517(6) Sample matrix;
3518(7) Total batch size, by weight, or unit count;
3519(8) Total weight, or unit count of the representative sample;
3520(9) Sampling conditions or problems encountered during the sampling process, if any.
3521(10) Printed name and signature of the licensed distributor or licensed microbusiness’ employee;
3522and
3523(11) Printed name and signature of the sampler;
3524(c) Each time the sample changes custody between licensees, is transported, or is destroyed, the
3525date, time, and the names and signatures of persons involved in these activities shall be recorded
3526on the COC form.
3527Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102,
352826104 and 26110, Business and Professions Code.
3529§ 5707. Harvest Batch Sampling
3530(a) The sampler shall obtain a representative sample from each prepacked or unpacked harvest
3531batch. The representative sample must weigh 0.35% of the total harvest batch weight.
3532(b) A sampler may collect greater than 0.35% of a prepacked or unpacked harvest batch if
3533necessary to perform the required testing or to ensure that the samples obtained are
3534representative.
3535(c) The prepacked or unpacked harvest batch from which a sample is obtained shall weigh no
3536more than 50.0 pounds. Laboratory analyses of a sample collected from a harvest batch weighing
3537more than 50.0 pounds shall be deemed invalid and the harvest batch from which the sample was
3538obtained may not be released for retail sale.
3539(d) When the sampler obtains a representative sample from an unpacked harvest batch, the
3540sampler shall do all the following:
3541(1) Collect the number of increments relative to the unpacked harvest batch size as listed in the
3542following table;
3543(2) Obtain increments from random and varying locations of the unpacked harvest batch, both
3544vertically and horizontally. To the extent practicable, the increments obtained from an unpacked
3545harvest batch shall be of equal weight; and
3546
3547Bureau of Cannabis Control Regular Regulations Text Page 93 of 136
3548
3549(3) To the extent practicable, collect an equal number of increments from each container if the
3550unpacked harvest batch is stored in multiple containers.
3551Unpacked Harvest Batch Size
3552(pounds)
3553
3554Number of Increments
3555(per sample)
3556
3557≤ 10.0
3558
35598
3560
356110.1 – 20.0
3562
356316
3564
356520.1 – 30.0
3566
356723
3568
356930.1 – 40.0
3570
357129
3572
357340.1 – 50.0
3574
357534
3576
3577Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3578and 26110, Business and Professions Code.
3579§ 5708. Cannabis Product Batch and Pre-Roll Sampling
3580(a) The sampler shall obtain a representative sample from each cannabis product batch or pre-roll
3581batch.
3582(b) The sampler may collect a greater number of increments if necessary to perform the required
3583testing or to ensure that the samples obtained are representative.
3584(c) The cannabis product batch or pre-roll batch from which a representative sample is obtained
3585shall contain no more than 150,000 units. Laboratory analyses of a sample collected from a
3586cannabis product batch containing more than 150,000 units shall be deemed invalid and the
3587cannabis product batch or pre-roll batch from which the representative sample was obtained may
3588not be released for retail sale.
3589(d) The sampler shall obtain a representative sample of cannabis product or pre-roll batch by
3590collecting, at minimum, the number of increments relative to the batch size as listed in the
3591following table. Each increment consists of 1 packaged unit.
3592Cannabis Product or Pre-roll
3593Batch Size
3594(units)
3595
3596Number of Increments
3597(per sample)
3598
3599≤ 50
3600
36012
3602
360351 – 150
3604
36053
3606
3607151 – 500
3608
36095
3610
3611501 – 1,200
3612
36138
3614
36151,201 – 3,200
3616
361713
3618
36193,201 – 10,000
3620
362120
3622
362310,001 – 35,000
3624
362532
3626
362735,001 – 150,000
3628
362950
3630
3631Bureau of Cannabis Control Regular Regulations Text Page 94 of 136
3632
3633Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3634and 26110, Business and Professions Code.
3635§ 5709. Laboratory Transportation of Cannabis Goods Samples
3636(a) The following requirements apply when a licensed testing laboratory transports cannabis
3637goods samples:
3638(1) Cannabis goods shall only be transported inside of a vehicle or trailer and shall not be visible
3639or identifiable from outside of the vehicle or trailer. For purposes of this section, the inside of the
3640vehicle includes the trunk.
3641(2) The laboratory shall ensure cannabis goods samples are stored in a locked box, a locked
3642container, or a locked cage that is secured to the inside of the vehicle or trailer during transport.
3643(3) While left unattended, vehicles, and trailers shall be locked and secured.
3644(4) The laboratory shall not leave a vehicle or trailer containing cannabis goods samples
3645unattended in a residential area or parked overnight in a residential area.
3646(5) The laboratory shall ensure that any vehicle or trailer transporting cannabis goods samples
3647has a vehicle alarm system.
3648(6) The laboratory shall ensure that packages or containers holding cannabis goods samples are
3649neither tampered with, nor opened during transport.
3650(7) The laboratory transporting cannabis goods samples shall only travel between licensees for
3651whom the laboratory is conducting compliance testing or quality assurance testing for, and the
3652laboratory’s licensed premises when engaged in the transportation of cannabis goods. A
3653laboratory shall not deviate from the travel requirements described in this section, except for
3654necessary rest, fuel, or vehicle repair stops.
3655(8) The laboratory may transport multiple cannabis goods samples obtained from multiple
3656licensees at once.
3657(9) Vehicles or trailers transporting cannabis goods samples are subject to inspection by the
3658Bureau at any licensed premises or during transport at any time.
3659(10) No person under the age of 21 years old shall be in a vehicle or trailer transporting cannabis
3660goods samples.
3661(11) Only an employee of the laboratory, or security personnel who meets the requirement of
3662section 5045 of this division shall be in a vehicle while transporting cannabis goods samples.
3663(b) The laboratory shall provide the following required transport vehicle information to the
3664Bureau:
3665
3666Bureau of Cannabis Control Regular Regulations Text Page 95 of 136
3667
3668(1) Proof that the laboratory owns or holds or a valid lease for each vehicle used to transport
3669cannabis goods samples;
3670(2) The year, make, model, license plate number, and numerical Vehicle Identification Number
3671(VIN) for each vehicle or trailer used to transport cannabis goods samples; and
3672(3) Proof of insurance for each vehicle used to transport cannabis goods samples.
3673(c) The laboratory shall provide the Bureau with the information required by this section in
3674writing for any new vehicle or trailer that will be used to transport cannabis goods samples prior
3675to using the vehicle or trailer.
3676(d) The laboratory shall provide the Bureau with any changes to the information required by this
3677section in writing within 30 calendar days.
3678Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26102,
367926104 and 26110, Business and Professions Code.
3680§ 5710. Laboratory Receipt of Samples Obtained from a Distributor or Microbusiness
3681(a) The laboratory may accept and analyze a sample from a licensed distributor or licensed
3682microbusiness for the required testing under section 5714 of this division only if there is an
3683accompanying COC form for the sample.
3684(b) The laboratory employee who receives the sample shall date, print, and sign their name on
3685the accompanying sample COC.
3686
3687-(b) (c) The laboratory shall not analyze a sample obtained from a licensed distributor or licensed
3688microbusiness, and the batch from which the sample was obtained may not be released for retail
3689sale, if the any of the following occur:
3690(1) The sample is received at the laboratory without the requisite COC form;
3691(2) The tamper-evident material is broken prior to the sample being received at the laboratory; or
3692(3) There is evidence of sample commingling, contamination, degradation, or a related
3693occurrence rendering the sample unusable for analytical testing when the sample is received at
3694the laboratory.
3695Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3696and 26110, Business and Professions Code.
3697Article 4. Standard Operating Procedures
3698§ 5711. Laboratory Analyses Standard Operating Procedures
3699The laboratory shall develop, implement, and maintain written standard operating procedures
3700(SOP) for sample preparation and each required test method. The laboratory shall use and submit
3701to the Bureau the following forms which are incorporated by reference:
3702
3703Bureau of Cannabis Control Regular Regulations Text Page 96 of 136
3704
3705(a) Sample Preparation – Standard Operating Procedures, Form BCC-LIC-022 (New 7/18),
3706which is incorporated herein by reference; and
3707(b) Test Methods – Standard Operating Procedures, Form BCC-LIC-023 (New 7/18), which is
3708incorporated herein by reference.
3709(c) The laboratory shall keep each SOP at the licensed laboratory premises and ensure that each
3710SOP is accessible to laboratory employees during operating hours.
3711(d) The laboratory shall make each SOP available for inspection by the Bureau upon request, as
3712well as any other SOPs associated with the licensee’s ISO/IEC 17025 certificate of accreditation.
3713Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100,
371426102, 26104 and 26110, Business and Professions Code
3715§ 5712. Test Methods
3716(a) The laboratory shall develop, implement, and validate test methods for the analyses of
3717samples as required under this division.
3718(b) To the extent practicable, the laboratory test methods shall comport with the following
3719guidelines:
3720(1) US Food and Drug Administration’s Bacterial Analytical Manual, 2016;
3721(2) AOAC International’s Official Methods of Analysis for Contaminant Testing of AOAC
3722International, 20th Edition, 2016; and
3723(3) United States Pharmacopeia and the National Formulary’s Methods of Analysis for
3724Contaminant Testing, 2016.
3725Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3726and 26110, Business and Professions Code.
3727§ 5713. Validation of Test Methods
3728(a) The laboratory may use a nonstandard, amplified, or modified test method or a method that is
3729designed or developed by the laboratory to validate the methods for analyses of samples.
3730(b) The laboratory shall follow the guidelines set forth in the US Food and Drug
3731Administration’s Guidelines for the Validation of Analytical Methods for the Detection of
3732Microbial Pathogens in Foods and Feeds, 2nd Edition, April 2015, incorporated herein by
3733reference, to validate test methods for the microbial analysis of samples.
3734(1) The laboratory shall include and address the criteria listed in the following table when
3735validating test methods for microbial analyses of samples.
3736
3737Bureau of Cannabis Control Regular Regulations Text Page 97 of 136
3738
3739Criteria
3740
3741Requirement
3742
3743Number of target organisms; inclusivity
3744Number of non-target organisms; exclusivity
3745Number of analyte levels per matrix: Qualitative methods
3746
37475
37485
37493 levels: high and low
3750inoculum levels and 1
3751uninoculated level
37524 levels: low, medium and
3753high inoculum levels and 1
3754uninoculated level
37552 or more replicates per level
3756
3757Number of analyte levels per matrix: Quantitative methods
3758
3759Replicates per food at each level tested
3760
3761(c) The laboratory shall follow the guidelines set forth in the US Food and Drug
3762Administration’s Guidelines for the Validation of Chemical Methods for the FDA FVM
3763Program, 2nd Edition, April 2015, incorporated herein by reference, to validate test methods for
3764chemical analysis of samples.
3765(1) The laboratory shall include and address the following criteria to validate test methods for
3766chemical analyses of samples:
3767(A) Accuracy;
3768(B) Precision;
3769(C) Linearity and range;
3770(i) The Coefficient of Determination (r2) for all calibration curves shall be greater than or equal
3771to 0.99.
3772(ii) LOQ for analytes tested shall be within the linear range of the calibration curve.
3773(D) Calibration standard;
3774(i) For calibration curves, there shall be a minimum of five calibration standards, not including
3775zero; and
3776(ii) Each calibration curve must include an Initial Calibration Verification (ICV).
3777(E) Sensitivity and selectivity;
3778(F) Limit of detection and limit of quantitation;
3779(G) Recovery;
3780(H) Reproducibility; and
3781
3782Bureau of Cannabis Control Regular Regulations Text Page 98 of 136
3783
3784(I) Robustness.
3785(2) The laboratory shall use certified reference materials, to validate the following chemical
3786analyses. The test method used for analysis is valid if the percent recovery of the certified
3787reference material is between 80% to 120% for all required analytes.
3788(A) Cannabinoids, if available;
3789(B) Heavy metals;
3790(C) Microbial impurities;
3791(D) Mycotoxins;
3792(E) Residual pesticides;
3793(F) Residual solvents and processing chemicals; and
3794(G) Terpenoids, if available.
3795(d) The laboratory shall generate a validation report for each test method. Each validation report
3796shall include the following information:
3797(1) Instrument calibration data, if any;
3798(2) Raw data, including instrument raw data, for each test method, if any;
3799(3) Cannabis reference materials or certified reference material results;
3800(4) Data and calculations pertaining to LOD and LOQ determinations, if any;
3801(5) LQC report, as described in this chapter, for the validation of each method; and
3802(6) Worksheets, forms, pictures, or copies of laboratory notebook pages and any other
3803documentation necessary to meet the requirements described in subsections (b) and (c) of this
3804section.
3805(7) The supervisory or management laboratory employee shall review, approve, sign, and date
3806the validation report for each test method.
3807(8) Upon new test methods or altered test methods being used in the laboratory, the new
3808validation report shall be submitted to the Bureau within 5 business days.
3809Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26100,
381026104 and 26110, Business and Professions Code.
3811Article 5. Laboratory Testing and Reporting
3812§ 5714. Required Testing
3813(a) The laboratory shall test each representative sample for the following:
3814(1) Cannabinoids;
3815Bureau of Cannabis Control Regular Regulations Text Page 99 of 136
3816
3817(2) Foreign material;
3818(3) Heavy metals;
3819(4) Microbial impurities;
3820(5) Mycotoxins;
3821(6) Moisture content and water activity;
3822(7) Residual pesticides;
3823(8) Residual solvents and processing chemicals; and
3824(9) If applicable, terpenoids.
3825(b) The laboratory shall report the results of each analysis performed by the laboratory on the
3826certificate of analysis.
3827Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3828and 26110, Business and Professions Code.
3829§ 5715. Phase-In of Required Laboratory Testing
3830(a) Cannabis goods shall not be sold or transferred to a licensed retailer or licensed
3831microbusiness, or released for retail sale, unless a representative sample of the cannabis goods
3832has undergone and passed all testing as required by this section.
3833(b) All cannabis harvested on or after January 1, 2018, and all cannabis products manufactured
3834on or after January 1, 2018, shall be tested for the following analytes, if applicable:
3835(1) Cannabinoids as required in section 5724 of this division;
3836(2) Moisture content as required in section 5717 of this division;
3837(3) Category II Residual Solvents and Processing Chemicals as required in section 5718 of this
3838division;
3839(4) Category I Residual Pesticides as required in section 5719 of this division; and
3840(5) Microbial Impurities as required in section 5720 of this division.
3841(c) In addition to the requirements of subsection (b) of this section, all cannabis harvested on or
3842after July 1, 2018, and all cannabis products manufactured on or after July 1, 2018, shall be
3843tested for the following analytes, if applicable:
3844(1) Category I Residual Solvents and Processing Chemicals as required in section 5718 of this
3845division;
3846(2) Category II Residual Pesticides as required in section 5719 of this division; and
3847(3) Foreign Material as required in section 5722 of this division.
3848Bureau of Cannabis Control Regular Regulations Text Page 100 of 136
3849
3850(d) In addition to the requirements in subsections (b) and (c) of this section, all cannabis
3851harvested on or after December 31, 2018, and all cannabis products manufactured on or after
3852December 31, 2018, shall be tested for the following analytes, if applicable:
3853(1) Terpenoids as required in section 5725 of this division;
3854(2) Mycotoxins as required in section 5721 of this division;
3855(3) Heavy Metals as required in section 5723 of this division; and
3856(4) Water Activity as required in section 5717 of this division.
3857(e) Licensees may have a sample of cannabis goods tested for analytes that are not yet required
3858to be tested. However, if the sample fails any additional test(s) not required pursuant to this
3859section on the date of testing, the batch from which the sample was collected fails testing and
3860shall not be released for retail sale.
3861Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and
386226104, Business and Professions Code.
3863§ 5716. [reserved]
3864§ 5717. Moisture Content and Water Activity Testing
3865(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of dried
3866flower to determine the level of water activity and the percentage of moisture content.
3867(1) The dried flower sample, including pre-rolls, shall be deemed to have passed water activity
3868testing if the water activity does not exceed 0.65 Aw. The laboratory shall report the result of the
3869water activity test on the certificate of analysis (COA) and indicate “pass” or “fail” on the COA.
3870(2) The laboratory shall report the result of the moisture content test on the COA as a percentage.
3871(b) The laboratory shall analyze at least 0.5 grams of the representative sample of solid edible
3872cannabis products to determine the level of water activity. A solid edible cannabis product shall
3873be deemed to have passed water activity testing if the water activity does not exceed 0.85 Aw.
3874The laboratory shall report the result of the water activity test on the COA and indicate “pass” or
3875“fail” on the COA.
3876(c) If the sample fails water activity testing, the batch from which the sample was collected fails
3877water activity testing and shall not be released for retail sale.
3878Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
3879and 26110, Business and Professions Code.
3880§ 5718. Residual Solvents and Processing Chemicals Testing
3881(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
3882product or pre-rolls to determine whether residual solvents or processing chemicals are present.
3883
3884Bureau of Cannabis Control Regular Regulations Text Page 101 of 136
3885
3886(b) The laboratory shall report the result of the residual solvents and processing chemicals testing
3887in unit micrograms per gram (µg/g) on the COA and indicate “pass” or “fail” on the COA.
3888(c) The laboratory shall establish a limit of quantification (LOQ) of 1.0 µg/g or lower for all
3889Category I Residual Solvents or Processing Chemicals.
3890(d) The sample shall be deemed to have passed the residual solvents and processing chemicals
3891testing if both of the following conditions are met:
3892(1) The presence of any residual solvent or processing chemical listed in the following tables in
3893Category I is not detected, and
3894(2) The presence of any residual solvent or processing chemical listed in the following tables in
3895Category II does not exceed the indicated action levels.
3896(A) Notwithstanding subsection (d)(2) of this section the limit for ethanol does not apply to
3897cannabis goods that are intended to be tinctures and meet the definition of tincture, as defined by
3898the State Department of Public Health in regulation.
3899
3900Category I
3901Residual Solvent or
3902Processing Chemical
39031,2-Dichloroethane
3904
3905CAS No.
3906107-06-2
3907
3908Benzene
3909
391071-43-2
3911
3912Chloroform
3913
391467-66-3
3915
3916Ethylene oxide
3917
391875-21-8
3919
3920Methylene chloride
3921
392275-09-2
3923
3924Trichloroethylene
3925
392679-01-6
3927
3928Category II
3929Residual Solvent or
3930
3931CAS No.
3932
3933Cannabis Product or
3934Pre-roll Action Level
3935(µg/g)
3936
3937Acetone
3938
393967-64-1
3940
39411000
3942
3943Acetonitrile
3944
394575-05-8
3946
394780
3948
3949Butane
3950
3951106-97-8
3952
39531000
3954
3955Ethanol
3956
395764-17-5
3958
39591000
3960
3961Processing Chemical
3962
3963Bureau of Cannabis Control Regular Regulations Text Page 102 of 136
3964
3965Ethyl acetate
3966
3967141-78-6
3968
39691000
3970
3971Ethyl ether
3972
397360-29-7
3974
39751000
3976
3977Heptane
3978
3979142-82-5
3980
39811000
3982
3983Hexane
3984
3985110-54-3
3986
398760
3988
3989Isopropyl alcohol
3990
399167-63-0
3992
39931000
3994
3995Methanol
3996
399767-56-1
3998
3999600
4000
4001Pentane
4002
4003109-66-0
4004
40051000
4006
4007Propane
4008
400974-98-6
4010
40111000
4012
4013Toluene
4014
4015108-88-3
4016
4017180
4018
4019Total xylenes (ortho-, meta-, para-)
4020
40211330-20-7
4022
4023430
4024
4025(e) If the sample fails residual solvents and processing chemicals testing, the batch from which
4026the sample was collected fails residual solvents and processing chemicals testing and shall not be
4027released for retail sale.
4028Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4029and 26110, Business and Professions Code.
4030§ 5719. Residual Pesticides Testing
4031(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
4032goods to determine whether residual pesticides are present.
4033(b) The laboratory shall report whether any Category I Residual Pesticides are detected above the
4034limit of detection (LOD) and shall report the result of the Category II Residual Pesticides testing
4035in unit micrograms per gram (µg/g) on the COA. The laboratory shall indicate “pass” or “fail” on
4036the COA.
4037(c) The laboratory shall establish a limit of quantification (LOQ) of 0.10 µg/g or lower for all
4038Category I Residual Pesticides.
4039(d) The sample shall be deemed to have passed the residual pesticides testing if both of the
4040following conditions are met:
4041(1) The presence of any residual pesticide listed in the following tables in Category I are not
4042detected, and
4043(2) The presence of any residual pesticide listed in the following tables in Category II does not
4044exceed the indicated action levels.
4045
4046Bureau of Cannabis Control Regular Regulations Text Page 103 of 136
4047
4048Category I
4049Residual Pesticide
4050Aldicarb
4051
4052CAS No.
4053116-06-3
4054
4055Carbofuran
4056
40571563-66-2
4058
4059Chlordane
4060
406157-74-9
4062
4063Chlorfenapyr
4064
4065122453-73-0
4066
4067Chlorpyrifos
4068
40692921-88-2
4070
4071Coumaphos
4072
407356-72-4
4074
4075Daminozide
4076
40771596-84-5
4078
4079DDVP (Dichlorvos)
4080
408162-73-7
4082
4083Dimethoate
4084
408560-51-5
4086
4087Ethoprop(hos)
4088
408913194-48-4
4090
4091Etofenprox
4092
409380844-07-1
4094
4095Fenoxycarb
4096
409772490-01-8
4098
4099Fipronil
4100
4101120068-37-3
4102
4103Imazalil
4104
410535554-44-0
4106
4107Methiocarb
4108
41092032-65-7
4110
4111Methyl parathion
4112
4113298-00-0
4114
4115Mevinphos
4116
41177786-34-7
4118
4119Paclobutrazol
4120
412176738-62-0
4122
4123Propoxur
4124
4125114-26-1
4126
4127Spiroxamine
4128
4129118134-30-8
4130
4131Thiacloprid
4132
4133111988-49-9
4134
4135Bureau of Cannabis Control Regular Regulations Text Page 104 of 136
4136
4137Action Level (µg/g)
4138Category II
4139Residual Pesticide
4140
4141CAS No.
4142
4143Abamectin
4144
4145Inhalable Cannabis
4146Goods
4147
4148Other Cannabis Goods
4149
415071751-41-2
4151
41520.1
4153
41540.3
4155
4156Acephate
4157
415830560-19-1
4159
41600.1
4161
41625
4163
4164Acequinocyl
4165
416657960-19-7
4167
41680.1
4169
41704
4171
4172Acetamiprid
4173
4174135410-20-7
4175
41760.1
4177
41785
4179
4180Azoxystrobin
4181
4182131860-33-8
4183
41840.1
4185
418640
4187
4188Bifenazate
4189
4190149877-41-8
4191
41920.1
4193
41945
4195
4196Bifenthrin
4197
419882657-04-3
4199
42003
4201
42020.5
4203
4204Boscalid
4205
4206188425-85-6
4207
42080.1
4209
421010
4211
4212Captan
4213
4214133-06-2
4215
42160.7
4217
42185
4219
4220Carbaryl
4221
422263-25-2
4223
42240.5
4225
42260.5
4227
4228Chlorantraniliprole
4229
4230500008-45-7
4231
423210
4233
423440
4235
4236Clofentezine
4237
423874115-24-5
4239
42400.1
4241
42420.5
4243
4244Cyfluthrin
4245
424668359-37-5
4247
42482
4249
42501
4251
4252Cypermethrin
4253
425452315-07-8
4255
42561
4257
42581
4259
4260Diazinon
4261
4262333-41-5
4263
42640.1
4265
42660.2
4267
4268Dimethomorph
4269
4270110488-70-5
4271
42722
4273
427420
4275
4276Etoxazole
4277
4278153233-91-1
4279
42800.1
4281
42821.5
4283
4284Fenhexamid
4285
4286126833-17-8
4287
42880.1
4289
429010
4291
4292Fenpyroximate
4293
4294111812-58-9
4295
42960.1
4297
42982
4299
4300Flonicamid
4301
4302158062-67-0
4303
43040.1
4305
43062
4307
4308Fludioxonil
4309
4310131341-86-1
4311
43120.1
4313
431430
4315
4316Hexythiazox
4317
431878587-05-0
4319
43200.1
4321
43222
4323
4324Imidacloprid
4325
4326138261-41-3
4327
43285
4329
43303
4331
4332Kresoxim-methyl
4333
4334143390-89-0
4335
43360.1
4337
43381
4339
4340Bureau of Cannabis Control Regular Regulations Text Page 105 of 136
4341
4342Action Level (µg/g)
4343Category II
4344Residual Pesticide
4345
4346CAS No.
4347
4348Malathion
4349
4350121-75-5
4351
4352Inhalable Cannabis
4353Goods
43540.5
4355
4356Metalaxyl
4357
435857837-19-1
4359
43602
4361
436215
4363
4364Methomyl
4365
436616752-77-5
4367
43681
4369
43700.1
4371
4372Myclobutanil
4373
437488671-89-0
4375
43760.1
4377
43789
4379
4380Naled
4381
4382300-76-5
4383
43840.1
4385
43860.5
4387
4388Oxamyl
4389
439023135-22-0
4391
43920.5
4393
43940.2
4395
4396Pentachloronitrobenzene
4397
439882-68-8
4399
44000.1
4401
44020.2
4403
4404Permethrin
4405
440652645-53-1
4407
44080.5
4409
441020
4411
4412Phosmet
4413
4414732-11-6
4415
44160.1
4417
44180.2
4419
4420Piperonylbutoxide
4421
442251-03-6
4423
44243
4425
44268
4427
4428Prallethrin
4429
443023031-36-9
4431
44320.1
4433
44340.4
4435
4436Propiconazole
4437
443860207-90-1
4439
44400.1
4441
444220
4443
4444Pyrethrins
4445
44468003-34-7
4447
44480.5
4449
44501
4451
4452Pyridaben
4453
445496489-71-3
4455
44560.1
4457
44583
4459
4460Spinetoram
4461
4462187166-15-0,
4463187166-40-1
4464
44650.1
4466
44673
4468
4469Spinosad
4470
4471131929-60-7,
4472131929-63-0
4473
44740.1
4475
44763
4477
4478Spiromesifen
4479
4480283594-90-1
4481
44820.1
4483
448412
4485
4486Spirotetramat
4487
4488203313-25-1
4489
44900.1
4491
449213
4493
4494Tebuconazole
4495
4496107534-96-3
4497
44980.1
4499
45002
4501
4502Thiamethoxam
4503
4504153719-23-4
4505
45065
4507
45084.5
4509
4510Trifloxystrobin
4511
4512141517-21-7
4513
45140.1
4515
451630
4517
4518Other Cannabis Goods
45195
4520
4521(e) If the sample fails residual pesticides testing, the batch from which the sample was collected
4522fails pesticides testing and shall not be released for retail sale.
4523Bureau of Cannabis Control Regular Regulations Text Page 106 of 136
4524
4525Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4526and 26110, Business and Professions Code.
4527§ 5720. Microbial Impurities Testing
4528(a) The laboratory shall analyze -a at minimum 1.0 grams of the representative sample of
4529cannabis goods to determine whether microbial impurities are present.
4530(b) The laboratory shall report the result of the microbial impurities testing by indicating “pass”
4531or “fail” on the COA.
4532(c) The sample of inhalable cannabis goods shall be deemed to have passed the microbial
4533impurities testing if all of the following conditions are met:
4534(1) Shiga toxin–producing Escherichia coli is not detected in 1 gram;
4535(2) Salmonella spp. is not detected in 1 gram; and
4536(3) Pathogenic Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus are not
4537detected in 1 gram.
4538(d) The sample of non-inhalable cannabis goods shall be deemed to have passed the microbial
4539impurities testing if both the following conditions are met:
4540(1) Shiga toxin–producing Escherichia coli is not detected in 1 gram, and
4541(2) Salmonella spp. is not detected in 1 gram.
4542(e) If the sample fails microbial impurities testing, the batch from which the sample was
4543collected fails microbial impurities testing and shall not be released for retail sale.
4544Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4545and 26110, Business and Professions Code.
4546§ 5721. Mycotoxin Testing
4547(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
4548goods to determine whether mycotoxins are present.
4549(b) The laboratory shall report the result of the mycotoxins testing in unit micrograms per
4550kilograms (µg/kg) on the COA and indicate “pass” or “fail” on the COA.
4551(c) The sample shall be deemed to have passed mycotoxin testing if both the following
4552conditions are met:
4553(1) Total of aflatoxin B1, B2, G1, and G2 does not exceed 20 µg/kg of substance, and
4554(2) Ochratoxin A does not exceed 20 µg/kg of substance.
4555(d) If the sample fails mycotoxin testing, the batch from which the sample was collected fails
4556mycotoxin testing and shall not be released for retail sale.
4557
4558Bureau of Cannabis Control Regular Regulations Text Page 107 of 136
4559
4560Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4561and 26110, Business and Professions Code.
4562§ 5722. Foreign Material Testing
4563(a) The laboratory shall analyze the representative sample of cannabis goods to determine
4564whether foreign material is present.
4565(b) The laboratory shall report the result of the foreign material test by indicating “pass” or “fail”
4566on the COA.
4567(c) The laboratory shall perform foreign material testing on the total representative sample prior
4568to sample homogenization.
4569(d) When the laboratory performs foreign material testing, at minimum, the laboratory shall do
4570all of the following:
4571(1) Examine both the exterior and interior of the dried flower sample, and
4572(2) Examine the exterior of the cannabis product sample.
4573(e) The sample shall be deemed to have passed the foreign material testing if the presence of
4574foreign material does not exceed:
4575(1) 1/4 of the total sample area covered by sand, soil, cinders, or dirt;
4576(2) 1/4 of the total sample area covered by mold;
4577(3) 1 insect fragment, 1 hair, or 1 count mammalian excreta per 3.0 grams; or
4578(4) 1/4 of the total sample area covered by an imbedded foreign material.
4579(f) If the sample fails foreign material testing, the batch from which the sample was collected
4580fails foreign material testing and shall not be released for retail sale.
4581Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4582and 26110, Business and Professions Code.
4583§ 5723. Heavy Metals Testing
4584(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
4585goods to determine whether heavy metals are present.
4586(b) The laboratory shall report the result of the heavy metals test in micrograms per gram (µg/g)
4587on the COA and indicate “pass” or “fail” on the COA.
4588(c) The sample shall be deemed to have passed the heavy metals testing if the presence of heavy
4589metals does not exceed the action levels listed in the following table.
4590(d) If the sample fails heavy metals testing, the batch from which the sample was collected fails
4591heavy metals testing and shall not be released for retail sale.
4592
4593Bureau of Cannabis Control Regular Regulations Text Page 108 of 136
4594
4595Heavy Metal
4596Cadmium
4597
4598Action Level (µg/g)
4599Inhalable Cannabis
4600Other Cannabis
4601Goods
4602Goods
46030.2
46040.5
4605
4606Lead
4607
46080.5
4609
46100.5
4611
4612Arsenic
4613
46140.2
4615
46161.5
4617
4618Mercury
4619
46200.1
4621
46223.0
4623
4624Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4625and 26110, Business and Professions Code.
4626§ 5724. Cannabinoid Testing
4627(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
4628goods to determine whether the cannabinoid profile of the sample conforms to the labeled
4629content of each cannabinoid such as THC; THCA; CBD; CBDA; CBG; and CBN.
4630(b) The laboratory shall report the result of the cannabinoid testing on the COA both as a
4631percentage and in milligrams per gram (mg/g) if by dry-weight or milligrams per milliliter
4632(mg/mL) if by volume. The laboratory shall verify that the cannabis goods label conforms with
4633the cannabinoid profile test results and indicate “pass” or “fail” on the COA.:
4634(1) If the laboratory reports the result of the cannabinoid testing on the COA in dry-weight
4635percent, they shall use the following equation:
4636Dry-weight percent cannabinoid = wet-weight percent cannabinoid / (1 − percent
4637moisture / 100)
4638(c) If the labeled content of any one cannabinoid is expressed as a total concentration of the
4639cannabinoid, the laboratory shall calculate the total cannabinoid concentration as follows:
4640(1) For concentration expressed in weight:
4641Total cannabinoid concentration (mg/g) = (cannabinoid acid form concentration (mg/g) x
46420.877) + cannabinoid concentration (mg/g)
4643(2) For concentration expressed in volume:
4644Total cannabinoid concentration (mg/mL) = (cannabinoid acid form concentration
4645(mg/mL) x 0.877) + cannabinoid concentration (mg/mL)
4646
4647Bureau of Cannabis Control Regular Regulations Text Page 109 of 136
4648
4649(d) The sample shall be deemed to have passed the cannabinoid testing if the concentration of
4650any one cannabinoid, claimed to be present at 5% or greater of the total cannabinoid profile, does
4651not exceed the labeled content of the cannabinoid.
4652(1) For edible cannabis products with a cannabinoid serving size greater than 5.1 mg, and for all
4653cannabis goods, the concentration of any one cannabinoid shall not exceed the labeled content of
4654the cannabinoid, plus or minus 10%.
4655(2) For edible cannabis products with a cannabinoid serving size of 2.1 mg to 5.0 mg, the
4656concentration of any one cannabinoid shall not exceed the labeled content of the cannabinoid,
4657plus or minus 15%.
4658(3) For edible cannabis products with a cannabinoid serving size of less than or equal to 2.0 mg,
4659the concentration of any one cannabinoid shall not exceed the labeled content of the cannabinoid,
4660plus or minus 25%.
4661(e) If the sample fails cannabinoid testing, the batch from which the sample was collected fails
4662cannabinoid testing and shall not be released for retail sale.
4663Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4664and 26110, Business and Professions Code.
4665§ 5725. Terpenoid Testing
4666(a) The laboratory shall analyze at minimum 0.5 grams of the representative sample of cannabis
4667goods to determine whether the terpenoid profile of the sample conforms to the labeled content
4668of terpenoids.
4669(b) The laboratory shall report the result of the terpenoid testing on the COA both as a
4670percentage and in either milligrams per gram (mg/g) if by weight or milligrams per milliliter
4671(mg/mL) if by volume. The laboratory shall verify that the cannabis goods label conforms with
4672the terpenoid profile test results and indicate “pass” or “fail” on the COA.
4673(c) The sample shall be deemed to have passed the terpenoid testing if the concentration of any
4674one terpenoid, claimed to be present at 5% or greater of the total terpenoid profile, does not
4675exceed the labeled content of the terpenoids, plus or minus 10%.
4676(d) If the sample fails terpenoid testing, the batch from which the sample was collected fails
4677terpenoid testing and shall not be released for retail sale.
4678Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4679and 26110, Business and Professions Code.
4680§ 5726. Certificate of Analysis (COA)
4681(a) The laboratory shall generate a COA for each representative sample that the laboratory
4682analyzes.
4683
4684Bureau of Cannabis Control Regular Regulations Text Page 110 of 136
4685
4686(b) The laboratory shall ensure that the COA contains the results of all required analyses
4687performed for the representative sample.
4688(c) The laboratory shall, within 1 business day of completing analyses of a sample, both upload
4689the COA into the track and trace system and simultaneously provide a copy of the COA to the
4690Bureau via email at bcc@dca.ca.gov and other requesters, if any.
4691(d) The COA shall contain, at minimum, the following information:
4692(1) Laboratory’s name, physical address, and license number;
4693(2) Licensed distributor or licensed microbusiness’ name, physical address, and license number;
4694(3) Licensed cultivator’s, licensed manufacturer’s, or licensed microbusiness’ name, physical
4695address, and license number;
4696(4) Batch number of the batch from which the sample was obtained;
4697(5) Sample identifying information, including matrix type and unique sample identifiers;
4698(6) Sample history, including the date collected, the date received by the laboratory, and the
4699date(s) of sample analyses and corresponding testing results;
4700(7) A picture of the cannabis goods, including packaging, if applicable;
4701(8) For dried flower samples, the total weight of the batch, in grams or pounds, and the total
4702weight of the representative sample in grams:
4703(9) For cannabis product or pre-rolls samples, the total unit count of both the representative
4704sample and the total batch size;
4705(10) Measured density of the cannabis goods;
4706(11) The analytical methods, analytical instrumentation used, and corresponding Limits of
4707Detection (LOD) and Limits of Quantitation (LOQ);
4708(12) An attestation on the COA from the laboratory supervisory or management employee that
4709all LQC samples required by section 5730 of this division were performed and met the
4710acceptance criteria; and
4711(13) Analytes detected during the analyses of the sample that are unknown, unidentified, or
4712injurious to human health if consumed, if any.
4713(e) The laboratory shall report test results for each representative sample on the COA as follows:
4714(1) Indicate an overall “pass” or “fail” for the entire batch;
4715(2) When reporting qualitative results for each analyte, the laboratory shall indicate “pass” or
4716“fail”;
4717(3) When reporting quantitative results for each analyte, the laboratory shall use the appropriate
4718units of measurement as required under this chapter;
4719
4720Bureau of Cannabis Control Regular Regulations Text Page 111 of 136
4721
4722(4) When reporting results for each test method, the laboratory shall indicate “pass” or “fail”;
4723(5) For representative samples obtained from a cannabis goods batch to which a content label is
4724affixed at the time of sampling, the laboratory shall report the following on the COA:
4725(A) The cannabinoid content and terpenoid content as printed or written on the label that is
4726affixed to the cannabis goods batch;
4727(B) The cannabinoid profile and the terpenoid profile of the representative sample as determined
4728by the laboratory as required under section 5724 and section 5725 of this division, respectively;
4729and
4730(C) The difference, in percentage, between the cannabinoid content and terpenoid content as
4731printed or written on the label and the cannabinoid profile and the terpenoid profile of the
4732representative sample, if any, as determined by the laboratory.
4733(6) When reporting results for any analytes that were detected below the analytical method LOQ,
4734indicate “<LOQ”;
4735(7) When reporting results for any analytes that were not detected or detected below the LOD,
4736indicate “ND”; and
4737(8) Indicate “NT” for any test that the laboratory did not perform.
4738(f) The laboratory supervisory or management employee shall validate the accuracy of the
4739information contained on the COA and sign and date the COA.
4740Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4741and 26110, Business and Professions Code.
4742Article 6. Post Testing Procedures
4743§ 5727. Remediation and Retesting
4744(a) A cannabis goods batch that has been additionally processed after failed testing must be
4745retested and successfully pass all the analyses required under this chapter. An edible cannabis
4746product batch shall not be additionally processed after a failed testing.
4747(b) A cannabis goods batch that failed testing only because of nonconformance with the labeled
4748content may be relabeled so that the batch conforms with the labeled content. Retesting is not
4749required if the relabeling is performed at the licensed distributor or licensed microbusiness
4750premises. An edible cannabis product batch that failed cannabinoid or terpenoid testing may only
4751be remediated by relabeling.
4752(c) The licensed distributor or licensed microbusiness shall arrange for remediation of a failed
4753cannabis goods batch. If the batch cannot be remediated, the batch shall be destroyed by the
4754licensed distributor or licensed microbusiness.
4755(d) If a batch is not remediated or reprocessed in any way it cannot be retested. Any subsequent
4756COAs produced without remediation or reprocessing of the failed batch will not supersede the
4757initial regulatory compliance testing COA.
4758
4759Bureau of Cannabis Control Regular Regulations Text Page 112 of 136
4760
4761(e) A cannabis goods batch may only be remediated twice. If the batch fails after the second
4762remediation attempt and the second retesting, the entire batch shall be destroyed.
4763(f) Within 1 business day of completing the required analyses of a representative sample
4764obtained from a remediated cannabis goods batch the laboratory shall upload the COA
4765information into the track and trace system. If the licensee does not yet have access to the track
4766and trace system, it shall be emailed to the Bureau.
4767Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4768and 26110, Business and Professions Code.
4769§ 5728. Post Testing Sample Retention
4770(a) The laboratory shall retain the reserve sample, consisting of any portion of a sample that was
4771not used in the testing process. The reserve sample shall be kept, at minimum, for 45 business
4772days after the analyses, after which time it may be destroyed and denatured to the point the
4773material is rendered unrecognizable and unusable.
4774(b) The laboratory shall securely store the reserve sample in a manner that prohibits sample
4775degradation, contamination, and tampering.
4776(c) The laboratory shall provide the reserve sample to the Bureau upon request.
4777Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4778and 26110, Business and Professions Code.
4779Article 7. Laboratory Quality Assurance and Quality Control
4780§ 5729. Laboratory Quality Assurance (LQA) Program
4781(a) The laboratory shall develop and implement a LQA program to assure the reliability and
4782validity of the analytical data produced by the laboratory. The LQA program shall, at minimum,
4783include a written LQA manual that addresses the following:
4784(1) Quality control procedures;
4785(2) Laboratory organization and employee training and responsibilities;
4786(3) LQA objectives for measurement data;
4787(4) Traceability of data and analytical results;
4788(5) Instrument maintenance, calibration procedures, and frequency;
4789(6) Performance and system audits;
4790(7) Corrective action procedures;
4791(8) Steps to change processes when necessary;
4792(9) Record retention and document control;
4793
4794Bureau of Cannabis Control Regular Regulations Text Page 113 of 136
4795
4796(10) Test procedure standardization; and
4797(11) Method validation.
4798(b) The supervisory or management laboratory employee shall annually review, amend if
4799necessary, and approve the LQA program and manual both when they are created and when there
4800is a change in methods, laboratory equipment, or the supervisory or management laboratory
4801employee.
4802Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4803and 26110, Business and Professions Code.
4804§ 5730. Laboratory Quality Control (LQC) Samples
4805(a) The laboratory shall use LQC samples in the performance of each analysis according to the
4806following specifications.
4807(b) The laboratory shall analyze LQC samples in the same manner as the laboratory analyzes
4808cannabis goods samples.
4809(c) The laboratory shall use at least one negative and one positive control in each analytical batch
4810for each target organism during microbial testing. If one of the controls produces unexpected
4811results, the samples shall be re-prepped and reanalyzed with a new set of controls.
4812(d) If the result of the microbial analyses is outside the specified acceptance criteria in the
4813following table, the laboratory shall determine the cause and take steps to remedy the problem
4814until the result is within the specified acceptance criteria.
4815Laboratory Quality
4816Control Sample
4817Positive control
4818
4819Acceptance Criteria
4820
4821Corrective Action
4822
4823Produces expected
4824result, positive result
4825
4826Negative control
4827
4828Produces expected
4829result, negative result
4830
4831Laboratory replicate
4832sample
4833
4834Sample results must
4835concur
4836
4837Re-prep and reanalyze the entire
4838analytical batch, once. If problem persists,
4839locate and remedy the source of
4840unexpected result, then re-prep samples
4841and reanalyze with a new set of controls.
4842Re-prep and reanalyze the entire
4843analytical batch, once. If problem persists,
4844locate and remedy the source of
4845unexpected result, then re-prep samples
4846and reanalyze with a new set of controls.
4847Reanalyze sample and associated replicate
4848sample once. If problem persists re-prep
4849samples and reanalyze.
4850
4851(e) The laboratory shall prepare and analyze at least one of each of the following LQC samples
4852for each analytical batch:
4853(1) Method blank;
4854
4855Bureau of Cannabis Control Regular Regulations Text Page 114 of 136
4856
4857(2) Laboratory control sample (LCS); and
4858(3) Laboratory replicate sample or matrix spike sample.
4859(f) The laboratory shall analyze, at minimum, a continuing calibration verification (CCV) sample
4860at the beginning of each analytical sequence and every 10 samples thereafter.
4861(g) If the result of the chemical analyses is outside the specified acceptance criteria in the
4862following table, the laboratory shall determine the cause and take steps to remedy the problem
4863until the result is within the specified acceptance criteria.
4864Laboratory Quality
4865Control Sample
4866Method blank sample
4867
4868Acceptance Criteria
4869
4870Corrective Action
4871
4872Not to exceed LOQ
4873
4874LCS
4875
4876Percent recovery 70% 130%
4877
4878Laboratory replicate
4879sample
4880
4881RPD ≤30%
4882
4883Matrix spike sample
4884
4885Percent recovery
4886between 70% to 130%
4887
4888CCV
4889
4890Percent recovery
4891between 70% to 130%
4892
4893Reanalyze entire analytical batch once. If
4894method blank is still greater than the LOQ
4895for any analyte, locate the source of
4896contamination then re-prep samples and
4897reanalyze.
4898Reanalyze the entire analytical batch,
4899once. If problem persists, re-prep samples
4900and reanalyze or re-run the initial
4901calibration curve.
4902Reanalyze sample and associated replicate
4903sample once. If problem persists re-prep
4904samples and reanalyze.
4905Reanalyze sample and associated matrix
4906spike sample once. If problem persists reprep samples and reanalyze.
4907Reanalyze all samples that followed the
4908last CCV that met the acceptance criteria.
4909If CCV still fails, re-run the initial
4910calibration curve and all samples in the
4911analytical sequence.
4912
4913(h) If any analyte is detected above any action level, as described in this chapter, the sample shall
4914be re-prepped and reanalyzed in replicate within another analytical batch.
4915(1) For quantitative analyses, the re-prepped sample and its associated replicate must meet the
4916acceptance criteria of RPD ≤30%.
4917(2) For qualitative analyses, the re-prepped sample and its associated replicate results must
4918concur.
4919(i) If any LQC sample produces a result outside of the acceptance criteria the laboratory cannot
4920report the result and the entire batch cannot be released for retail sale. The laboratory shall
4921determine the cause and take steps to remedy the problem until the result is within the specified
4922acceptance criteria.
4923
4924Bureau of Cannabis Control Regular Regulations Text Page 115 of 136
4925
4926(j) If the laboratory determines that the result is a false-positive or a false-negative, The Bureau
4927may request the laboratory to re-sample or re-test.
4928(k) The laboratory shall compile and generate one LQC sample report for each analytical batch
4929that includes LQC acceptance criteria, measurements, analysis date, and matrix.
4930Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4931and 26110, Business and Professions Code.
4932§ 5731. Limits of Detection (LOD) and Limits of Quantitation (LOQ) for Quantitative
4933Analyses
4934(a) The laboratory shall calculate the LOD for chemical method analyses according to any of the
4935following methods:
4936(1) Signal-to-noise ratio of between 3:1 and 2:1;
4937(2) Standard deviation of the response and the slope of calibration curve using a minimum of 7
4938spiked blank samples calculated as follows;
4939LOD = (3.3 x standard deviation of the response) / slope of the calibration curve; or
4940(3) A method published by the United States Food and Drug Administration (USFDA) or the
4941United States Environmental Protection Agency (USEPA).
4942(b) The laboratory shall calculate the LOQ for chemical method analyses according to any of the
4943following methods:
4944(1) Signal-to-noise ratio of 10:1, at minimum;
4945(2) Standard deviation of the response and the slope using a minimum of 7 spiked blank samples
4946calculated as follows:
4947LOQ = (10 × standard deviation of the response) / slope of the calibration curve; or
4948(3) A method published by the USFDA or the USEPA.
4949Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104
4950and 26110, Business and Professions Code.
4951§ 5732. Data Package
4952(a) The laboratory shall compile and generate one data package for each representative sample
4953that the laboratory analyzes. At a minimum, the data package shall contain the following:
4954(1) The name, physical address, and license number of the laboratory that performed the
4955analytical procedures;
4956(2) The name(s), title(s), and signature(s) of the laboratory employee(s) that performed the
4957sample preparation, analyses, data review, and final approval;
4958(3) All batch sample results and batch LQC sample results;
4959
4960Bureau of Cannabis Control Regular Regulations Text Page 116 of 136
4961
4962(4) Date stamped raw data, including instrument raw data, such as chromatograms for each
4963sample, if any;
4964(5) Instrument test method with parameters, if any;
4965(6) Instrument tune report, if any;
4966(7) Instrument calibration data, if any;
4967(8) LQC sample report that includes LQC acceptance criteria, measurements, analysis date, and
4968matrix;
4969(9) Worksheets, forms, pictures, or copies of laboratory notebook pages and any other pertinent
4970documentation related to the identification and traceability of all reagents, reference materials,
4971and standards used for analysis;
4972(10) Analytical sequence, if any;
4973(11) Shipping manifest, as required under this division;
4974(12) The COC form; and
4975(13) The COA created as required under this chapter.
4976(b) After the data package is compiled, and prior to the release of the COA, the supervisory or
4977management laboratory employee shall do the following:
4978(1) Review the analytical results for technical correctness and completeness;
4979(2) Verify that the results of each analysis carried out by the laboratory are reported accurately,
4980clearly, unambiguously, and objectively; and
4981(3) Approve the laboratory results by signing and dating the data package.
4982(c) The data package shall be kept for a minimum of 7 years and shall be made available upon
4983request by the Bureau.
4984Authority: Section 26013, Business and Professions Code. Reference: Sections 26100, 26104,
498526110 and 26160, Business and Professions Code.
4986§ 5733. Required Proficiency Testing
4987(a) The laboratory shall participate in a proficiency testing program provided by an organization
4988that operates in conformance with the requirements of ISO/IEC 17043, at least once every six
4989months.
4990(b) The laboratory shall annually, successfully participate in a proficiency testing program for
4991each of the following test methods:
4992(1) Cannabinoids;
4993(2) Heavy metals;
4994
4995Bureau of Cannabis Control Regular Regulations Text Page 117 of 136
4996
4997(3) Microbial impurities;
4998(4) Mycotoxins;
4999(5) Residual pesticides;
5000(6) Residual solvents and processing chemicals; and
5001(7) If tested, terpenoids.
5002(c) The laboratory shall report all analytes available by the proficiency testing program provider
5003and for which the licensee is required to test as required under this chapter.
5004(d) The laboratory shall participate in the proficiency testing program by following the
5005laboratory’s existing SOPs for testing cannabis goods.
5006(e) The laboratory shall rotate the proficiency testing program among the laboratory employees
5007who perform the test methods.
5008(f) Laboratory employees who participate in a proficiency testing program shall sign the
5009corresponding analytical reports or attestation statements to certify that the proficiency testing
5010program was conducted in the same manner as the laboratory tests of cannabis goods.
5011(g) A supervisory or management laboratory employee shall review and verify the accuracy of
5012results reported for all proficiency testing program samples analyzed.
5013(h) The laboratory shall request the proficiency testing program provider to send results
5014concurrently to the Bureau, if available, or the laboratory shall provide the PT program results to
5015the Bureau within 3 business days after the laboratory receives notification of their test results
5016from the proficiency testing program provider.
5017Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and
501826110, Business and Professions Code.
5019§ 5734. Satisfactory and Unsatisfactory Proficiency Test Performance
5020(a) The laboratory shall be deemed to have successfully participated in a proficiency testing
5021program for an analyte tested in a specific method if the test results demonstrate a “satisfactory”
5022or otherwise proficient performance determination by the proficiency testing program provider.
5023(b) The laboratory may not report test results for analytes that are deemed by the proficiency
5024testing program provider as “unacceptable,” “questionable,” “unsatisfactory”, or otherwise
5025deficient.
5026(c) The laboratory may resume reporting test results for analytes that were deemed
5027“unacceptable,” “questionable,” “unsatisfactory”, or otherwise deficient, only if both of the
5028following conditions are met:
5029(1) The laboratory satisfactorily remedies the cause of the failure for each analyte; and
5030
5031Bureau of Cannabis Control Regular Regulations Text Page 118 of 136
5032
5033(2) The laboratory submits, to the Bureau, a written corrective action report demonstrating how
5034the laboratory has fixed the cause of the failure.
5035Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and
503626110, Business and Professions Code.
5037§ 5735. Laboratory Audits
5038(a) The laboratory shall conduct an internal audit at least once per year or in accordance with the
5039ISO/IEC 17025 accrediting body’s requirement, whichever is more frequent.
5040(b) The internal audit must include all of the components required by the ISO/IEC 17025
5041internal-audit standards.
5042(c) Within 3 business days of completing the internal audit, the laboratory shall submit the results
5043of the internal audit to the Bureau.
5044(d) Within 3 business days of receiving the Accrediting Body on-site audit findings the
5045laboratory shall submit the results to the Bureau.
5046Authority: Section 26013, Business and Professions Code. Reference: Sections 26100 and
504726104, Business and Professions Code.
5048Article 8. Laboratory Employee Qualifications
5049§ 5736. General Laboratory Employee Qualifications
5050(a) The laboratory may only employ persons who are at least 21 years of age.
5051(b) The laboratory shall develop and implement an employee training program to ensure
5052competency of laboratory employees for their assigned functions.
5053(c) The laboratory shall ensure and document that each laboratory employee meets the employee
5054qualifications.
5055Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and
505626104, Business and Professions Code.
5057§ 5737. Supervisor or Management Responsibilities and Qualifications
5058(a) The laboratory shall employ a supervisor or management employee who must be responsible
5059for:
5060(1) Overseeing and directing the scientific methods of the laboratory;
5061(2) Ensuring that the laboratory achieves and maintains a laboratory quality assurance program
5062as required by section 5729 of this division; and
5063(3) Providing ongoing and appropriate training to laboratory employees.
5064(b) To be considered qualified, the supervisor or management employee must have at minimum:
5065
5066Bureau of Cannabis Control Regular Regulations Text Page 119 of 136
5067
5068(1) A doctoral degree in biological, chemical, agricultural, environmental, or related sciences
5069from an accredited college or university;
5070(2) A master’s degree in biological, chemical, agricultural, environmental, or related sciences
5071from an accredited college or university, plus at least 2 years of full-time practical experience;
5072(3) A bachelor’s degree in biological, chemical, agricultural, environmental, or related sciences
5073from an accredited college or university, plus at least 4 years of full-time practical experience; or
5074(4) A bachelor’s degree in any field from an accredited college or university, plus at least 8 years
5075of full-time practical experience, 4 years of which must have been in a supervisory or
5076management position.
5077Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and
507826104, Business and Professions Code.
5079§ 5738. Analyst and Sampler Qualifications
5080(a) The laboratory shall employ an analyst who, at minimum, must have either:
5081(1) Earned a master’s degree or a bachelor’s degree in biological, chemical, agricultural,
5082environmental, or related sciences from an accredited college or university; or
5083(2) Completed 2 years of college or university education that included coursework in biological,
5084chemical, agricultural, environmental, or related sciences from an accredited college or
5085university, plus at least 3 years of full-time practical experience.
5086(b) The laboratory shall employ a sampler who, at minimum, must have either:
5087(1) Completed 2 years college or university education; or
5088(2) Earned a High School Diploma or passed a General Educational Development or High
5089School Equivalency exam, plus at least 1 year of full-time practical experience.
5090Authority: Section 26013, Business and Professions Code. Reference: Sections 26102 and
509126104, Business and Professions Code.
5092Article 9. Record Retention
5093§ 5739. Records
5094All laboratory records described in this chapter shall be maintained in accordance with section
50955037 of this division.
5096Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
5097and Professions Code.
5098
5099Bureau of Cannabis Control Regular Regulations Text Page 120 of 136
5100
5101Chapter 7. ENFORCEMENT
5102§ 5800. Right of Access
5103(a) The Bureau, and its authorized representatives, shall have full and immediate access to
5104inspect and:
5105(1) Enter onto any premises licensed by the Bureau.
5106(2) Test any vehicle or equipment possessed by, in control of, or used by a licensee or their
5107agents and employees for the purpose of conducting commercial cannabis activity.
5108(3) Test any cannabis goods or cannabis-related materials or products possessed by, in control of,
5109or used by a licensee or their agents and employees for the purpose of conducting commercial
5110cannabis activity.
5111(4) Copy any materials, books, or records of any licensee or their agents and employees.
5112(b) Failure to cooperate with and participate in any Bureau investigation pending against the
5113licensee may result in a licensing violation subject to discipline. This subsection shall not be
5114construed to deprive a licensee of any privilege guaranteed by the Fifth Amendment to the
5115Constitution of the United States, or any other constitutional or statutory privileges. This
5116subsection shall not be construed to require a licensee to cooperate with a request that would
5117require the licensee to waive any constitutional or statutory privilege or to comply with a request
5118for information or other matters within an unreasonable period of time in light of the time
5119constraints of the licensee’s business. Any constitutional or statutory privilege exercised by the
5120licensee shall not be used against the licensee in a regulatory or disciplinary proceeding against
5121the licensee.
5122(c) The Bureau, and its authorized representatives, shall have the rights of immediate access
5123under subsection (a) of this section, during any inspection, investigation, review, or audit, or as
5124otherwise allowed by law.
5125(d) Prior notice of an inspection, investigation, review, or audit is not required.
5126(e) Any inspection, investigation, review, or audit of a licensed premises shall be conducted
5127anytime the licensee is exercising privileges under the license, or as otherwise agreed to by the
5128Bureau and the licensee or its agents, employees, or representatives.
5129(f) If the licensed premises is not accessible because access is only available by going through
5130another licensed premises and the licensee occupying the other licensed premises denies the
5131Bureau access, the licensees shall both be held responsible and subject to discipline.
5132Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26015
5133and 26160, Business and Professions Code; and Section 11181, Government Code.
5134
5135Bureau of Cannabis Control Regular Regulations Text Page 121 of 136
5136
5137§ 5801. Notice to Comply
5138(a) The Bureau may issue a notice to comply to a licensee for violation(s) of the Act or
5139regulations observed during an inspection.
5140(b) The notice to comply shall be in writing and describe the nature and facts of each violation,
5141including a reference to the statute or regulation violated, and may indicate the manner in which
5142the licensee must correct the violation(s) to achieve compliance.
5143(c) The Bureau will serve the notice to comply prior to leaving the licensed premises after the
5144inspection on any licensee, employee, agent, or person delegated by any of the aforementioned
5145persons, to facilitate the inspection or accept such notice, or will mail the notice to comply within
514615 calendar days of the last date of inspection.
5147(d) The notice to comply shall inform the licensee that the licensee may, within 15 calendar days
5148from the date of personal service or mailing of the notice to comply, sign and return the notice to
5149comply declaring under penalty of perjury that each violation was corrected and describing how
5150compliance was achieved.
5151(e) Failure to correct the violation(s) in the notice to comply may result in a disciplinary action.
5152Authority: Section 26013, Business and Professions Code; Reference: Sections 26012 and
515326018, Business and Professions Code.
5154§ 5802. Citations; Orders of Abatement; Administrative Fines
5155(a) The Bureau may issue citations containing orders of abatement and fines against a licensee,
5156or an unlicensed person, for any acts or omissions which are in violation of any provision of the
5157Act or any regulation adopted pursuant thereto, or for any violation of state law or regulations
5158applicable to cannabis licensees, including but not limited to state labor law.
5159(b) The Bureau may issue a citation under this section to a licensee for a violation of a term or
5160condition contained in a decision placing that licensee on probation.
5161(c) Each citation:
5162(1) Shall be in writing.
5163(2) Shall describe with particularity the nature of the violation, including a reference to the law
5164or regulation determined to have been violated.
5165(3) May contain an assessment of an administrative fine of up to $5,000, and/or an order of
5166abatement fixing a reasonable time for abatement of the violation;
5167(4) Shall be served personally or by certified mail; and
5168(5) Shall inform the licensee or person that he or she may request an informal conference, or
5169contest the citation, or both, pursuant to section 5803 of this division.
5170
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5172
5173(d) Failure to pay a fine within 30 calendar days of the date of assessment, unless the citation is
5174being contested, may result in further action being taken by the Bureau including, but not limited
5175to, suspension or revocation of a license. If a citation is not appealed and the fine is not paid, the
5176full amount of the assessed fine shall be added to the fee for renewal of the license. A license
5177shall not be renewed without the payment of the renewal fee and fine.
5178(e) The amount of any fine to be levied by the Bureau shall take into consideration the factors
5179listed in Business and Professions Code section 125.9(b)(3).
5180(f) Nothing in this section shall be deemed to prevent the Bureau from filing an accusation to
5181suspend or revoke a license where grounds for such suspension or revocation exist.
5182Authority: Sections 125.9 and 26013, Business and Professions Code. Reference: Sections 125.9,
5183148, 149 and 26012, Business and Professions Code.
5184§ 5803. Contesting Citations
5185(a) A cited licensee or person may, within 30 calendar days of service of the citation, contest the
5186citation by requesting a hearing in writing to the Bureau or such hearing is waived. The hearing
5187shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of
5188Division 3 of the Government Code.
5189(b) In addition to requesting a hearing provided for in subsection (a) of this section, the cited
5190licensee or person may, within 15 calendar days after service of the citation, submit a written
5191request for an informal conference with the Bureau regarding the acts or omissions charged in
5192the citation.
5193(c) The Bureau shall, within 15 calendar days from receipt of the written request, hold an
5194informal conference with the licensee or person cited, and/or his or her legal counsel or
5195authorized representative.
5196(d) At the conclusion of the informal conference, the Bureau may affirm, modify, or dismiss the
5197citation, including any fines levied or orders of abatement issued. A written decision stating the
5198reasons for the decision shall be mailed to the cited licensee or person and his or her legal
5199counsel, if any, within 15 calendar days from the date of the informal conference. This decision
5200shall be deemed to be a final order with regard to the citation issued, including the levied fine
5201and the order of abatement, if any.
5202(e) If the citation is dismissed, any request for a hearing shall be deemed withdrawn. If the
5203citation is affirmed or modified, the cited licensee or person may, in his or her discretion,
5204withdraw the request for a hearing or proceed with the administrative hearing process.
5205(f) If the citation, including any fine levied or order of abatement, is modified, the citation
5206originally issued shall be considered withdrawn and new citation issued. If a hearing is requested
5207for the subsequent citation, it shall be requested within 30 calendar days in accordance with
5208Business and Professions Code section 125.9(b)(4).
5209
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5211
5212Authority: Section 26013, Business and Professions Code. Reference: Sections 125.9, 26012 and
521326016, Business and Professions Code.
5214§ 5804. Citation Compliance
5215(a) The time to abate or correct a violation as provided for in an order of abatement may be
5216extended for good cause. If a cited licensee or person who has been issued an order of abatement
5217is unable to complete the correction within the time set forth in the citation because of conditions
5218beyond his or her control after the exercise of reasonable diligence, the licensee or person cited
5219may request an extension of time from the Bureau in which to complete the correction. Such a
5220request shall be in writing and shall be made within the time set forth for abatement.
5221(b) When a citation is not contested, or if it is appealed and the person cited does not prevail,
5222failure to abate the violation within the time allowed or pay a fine that was imposed shall
5223constitute a violation and a failure to comply with the citation or order of abatement.
5224(c) Failure to timely comply with an order of abatement or pay a fine that was imposed may
5225result in further action being taken by the Bureau, including, but not limited to, suspension or
5226revocation of a license, or further administrative or civil proceedings.
5227Authority: Section 26013, Business and Professions Code. Reference: Sections 125.9 and 26012,
5228Business and Professions Code.
5229§ 5805. Minor Decoys
5230(a) Peace officers may use a person under 21 years of age to attempt to purchase cannabis goods,
5231for the purposes of enforcing the Act, and to apprehend licensees, employees, or agents of
5232licensees who sell cannabis goods to minors. For purposes of this section, a “minor” is a person
5233under 21 years of age.
5234(b) The following minimum standards shall apply to the use of a minor decoy:
5235(1) At the time of the operation, the decoy shall be less than 20 years of age.
5236(2) A decoy shall either carry his or her own identification showing the decoy’s correct date of
5237birth, or carry no identification. A decoy who carries identification shall present it upon request
5238to any seller of cannabis goods.
5239(3) A decoy shall answer truthfully any questions about his or her age.
5240(4) Following any completed sale, but not later than the time a citation, if any, is issued, the
5241peace officer directing the decoy shall make a reasonable attempt to enter the licensed premises
5242or respond to the location where the licensee is located and have the minor decoy who purchased
5243cannabis goods identify the alleged seller of the cannabis goods.
5244Authority: Sections 26013 and 26140, Business and Professions Code. Reference: Section
524526140, Business and Professions Code.
5246
5247Bureau of Cannabis Control Regular Regulations Text Page 124 of 136
5248
5249§ 5806. Attire and Conduct
5250No license shall allow the following:
5251(a) Employment or use of any person in the sale or service of cannabis goods in or upon the
5252licensed premises while such person is unclothed or in such attire, costume, or clothing as to
5253expose to view any portion of the male or female breast below the top of the areola or of any
5254portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals.
5255(b) Employment or use of the services of any host or other person to mingle with the patrons
5256while such hostess or other person is unclothed or in such attire, costume, or clothing as
5257described in subsection (a)(1) of this section.
5258(c) Encouraging or permitting any person on the licensed premises to touch, caress, or fondle the
5259breasts, buttocks, anus, or genitals of any other person.
5260(d) Permitting any employee or person to wear or use any device or covering, exposed to view,
5261which simulates the breast, genitals, anus, pubic hair, or any portion thereof.
5262Authority: Section 26013, Business and Professions Code. Reference: 26011.5, Business and
5263Professions Code.
5264§ 5807. Entertainers and Conduct
5265(a) Live entertainment is permitted on a licensed premises, except that no licensee shall permit
5266any person to perform acts of or acts that simulate:
5267(1) Sexual intercourse, masturbation, sodomy, bestiality, oral copulation, flagellation, or any
5268sexual acts that are prohibited by law.
5269(2) Touching, caressing, or fondling of the breast, buttocks, anus, or genitals.
5270(3) Displaying of the buttocks, breasts, pubic hair, anus, vulva, or genitals.
5271(b) No licensee shall permit any person to use artificial devices or inanimate objects to depict any
5272of the prohibited activities described above.
5273(c) No licensee shall permit any person to remain in or upon the licensed premises who exposes
5274to public view any portion of his or her breast, buttocks, genitals, or anus.
5275Authority: Section 26013, Business and Professions Code. Reference: 26011.5, Business and
5276Professions Code.
5277§ 5808. Additional Grounds for Discipline
5278The following include, but are not limited to, additional grounds that constitute a basis for
5279disciplinary action:
5280(a) Failure to pay a fine imposed by the Bureau or agreed to by the licensee.
5281
5282Bureau of Cannabis Control Regular Regulations Text Page 125 of 136
5283
5284(b) Failure to take reasonable steps to correct objectionable conditions on the licensed premises,
5285including the immediately adjacent area that is owned, leased, or rented by the licensee, that
5286constitute a nuisance, within a reasonable time after receipt of notice to make those corrections,
5287under Penal Code section 373a.
5288(c) Failure to take reasonable steps to correct objectionable conditions that occur during
5289operating hours on any public sidewalk abutting a licensed premises and constitute a nuisance,
5290within a reasonable time after receipt of notice to correct those conditions from the Bureau. This
5291subsection shall apply to a licensee only upon written notice to the licensee from the Bureau. The
5292Bureau shall issue this written notice upon its own determination, or upon a request from the
5293local law enforcement agency in whose jurisdiction the licensed premises is located, that is
5294supported by substantial evidence that persistent objectionable conditions are occurring on the
5295public sidewalk abutting the licensed premises. For purposes of this subsection:
5296(1) “Any public sidewalk abutting a licensed premises” means the publicly owned, pedestriantraveled way, not more than 20 feet from the licensed premises, that is located between a
5297licensed premises, including any immediately adjacent area that is owned, leased, or rented by
5298the licensee, and a public street
5299(2) “Objectionable conditions that constitute a nuisance” means disturbance of the peace, public
5300intoxication, drinking alcoholic beverages in public, smoking or ingesting cannabis or cannabis
5301products in public, harassment of passersby, gambling, prostitution, loitering, public urination,
5302lewd conduct, drug trafficking, or excessive loud noise.
5303(3) “Reasonable steps” means all of the following:
5304(A) Calling the local law enforcement agency. Timely calls to the local law enforcement agency
5305that are placed by the licensee, or his or her agents or employees, shall not be construed by the
5306Bureau as evidence of objectionable conditions that constitute a nuisance.
5307(B) Requesting those persons engaging in activities causing objectionable conditions to cease
5308those activities, unless the licensee, or his or her agents or employees, feel that their personal
5309safety would be threatened in making that request.
5310(C) Making good faith efforts to remove items that facilitate loitering, such as furniture, except
5311those structures approved or permitted by the local jurisdiction. The licensee shall not be liable
5312for the removal of those items that facilitate loitering.
5313(4) When determining what constitutes “reasonable steps,” the Bureau shall consider site
5314configuration constraints related to the unique circumstances of the nature of the business.
5315(d) Notwithstanding that the licensee corrects the objectionable conditions that constitute a
5316nuisance, the licensee has a continuing obligation to meet the requirements of subsections (a) and
5317(b) of this section, and failure to do so shall constitute grounds for disciplinary action.
5318(e) If a licensee has knowingly permitted the illegal sale, or negotiations for the sales, of
5319controlled substances or dangerous drugs upon his or her licensed premises. Successive sales, or
5320
5321Bureau of Cannabis Control Regular Regulations Text Page 126 of 136
5322
5323negotiations for sales, over any continuous period of time shall be deemed evidence of
5324permission. As used in this section, “controlled substances” shall have the same meaning as is
5325given that term in Article 1 (commencing with Section 11000) of Chapter 1 of Division 10 of the
5326Health and Safety Code, and “dangerous drugs” shall have the same meaning as is given that
5327term in Article 2 (commencing with Section 4015) of Chapter 9 of Division 2 of the Business
5328and Professions Code.
5329(f) If the licensee has employed or permitted any persons to solicit or encourage others, directly
5330or indirectly, to buy such persons cannabis goods in the licensed premises under any
5331commission, percentage, salary, or other profit-sharing plan, scheme, or conspiracy.
5332Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 26012,
533326030, and 26031, Business and Professions Code.
5334§ 5809. Disciplinary Actions
5335(a) When an accusation recommending disciplinary action against a license has been filed
5336pursuant to Business and Professions Code section 26031, the accusation shall be served on the
5337licensee in accordance with Government Code section 11505.
5338(b) A hearing shall be conducted in accordance with the provisions of Chapter 5 (commencing
5339with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code to determine if
5340cause exists to take action against the licensee. At such a hearing, the Bureau shall have all the
5341powers granted therein and by the Business and Professions Code.
5342(c) If a hearing on an accusation against a licensee results in a finding that the licensee has
5343committed any of the acts or omissions constituting grounds for disciplinary action, the Bureau
5344may order the license revoked, suspended outright for a specified period of time, or suspended
5345on probationary restriction for a specified period of time on such terms and conditions of
5346probation as in its judgment are supported by its findings, impose a fine, or any combination
5347thereof. The Bureau may also issue such other lawful orders it considers to be appropriate on the
5348basis of its findings.
5349(d) An accusation may be terminated by written stipulation at any time prior to the conclusion of
5350the hearing on the accusation. If a licensee submits a proposed stipulation to the Bureau for its
5351consideration and the Bureau subsequently declines to accept the proposed stipulation, the
5352Bureau shall not thereafter be disqualified from hearing evidence on the accusation and taking
5353action thereon as authorized in this section.
5354Authority: Section 26013, Business and Professions Code. Reference: Sections 26012, 26031
5355and 26034, Business and Professions Code.
5356§ 5810. Interim Suspension
5357(a) Pursuant to Business and Professions Code section 494, the Bureau may petition for an
5358interim order to suspend any license or impose licensing restrictions upon any licensee, if:
5359
5360Bureau of Cannabis Control Regular Regulations Text Page 127 of 136
5361
5362(1) The licensee has engaged in acts or omissions constituting a violation of the Business and
5363Professions Code or this division, or been convicted of a crime substantially related to the
5364licensed activity, and
5365(2) Permitting the licensee to continue to engage in the licensed activity would endanger the
5366public health, safety, or welfare.
5367(b) An interim order for suspension or restrictions may issue with notice, as follows:
5368(1) The Bureau shall provide the licensee with at least 15 days’ notice of the hearing on the
5369petition for an interim order.
5370(2) The notice shall include documents submitted in support of the petition.
5371(c) An interim order for suspension or restrictions may issue without notice to the licensee, as
5372follows:
5373(1) If it appears from the Bureau’s petition and supporting documents that serious injury would
5374result to the public before the matter could be heard on notice.
5375(2) The Bureau shall provide the licensee with a hearing on the petition within 20 days after
5376issuance of the initial interim order.
5377(3) Notice of the hearing shall be provided within two days after issuance of the initial interim
5378order.
5379(d) The Bureau shall file an accusation, pursuant to Chapter 5 (commencing with Section 11500)
5380of Part 1 of Division 3 of Title 2 of the Government Code, within 15 calendar days of the
5381issuance of the interim order.
5382Authority: Section 26013, Business and Professions Code; Reference: Sections 494, 26011.5,
538326012 and 26031, Business and Professions Code.
5384§ 5811. Posting of Notice of Suspension
5385(a) A licensee whose license has been suspended shall conspicuously and continuously display a
5386notice on the exterior of the licensee’s premises for the duration of the suspension.
5387(b) The notice shall be two feet in length and 14 inches in width. The notice shall read:
5388NOTICE OF SUSPENSION
5389The Bureau of Cannabis Control License(s)
5390Issued For This Premises Has Been Suspended
5391For Violation of State Law
5392(c) Advertising or posting signs to the effect that the licensed premises has been closed or that
5393business has been suspended for any reason other than the reason provided in the decision
5394suspending the license, shall be deemed a violation of this section.
5395
5396Bureau of Cannabis Control Regular Regulations Text Page 128 of 136
5397
5398(d) Failure to display the notice as required in this section or removal of the notice prior to the
5399expiration of the suspension shall be a violation of this section and may result in additional
5400disciplinary action.
5401(e) A licensee shall notify the Bureau within 24 hours of discovering that the notice under
5402subsection (b) of this section has been removed or damaged to an extent that makes the notice
5403illegible.
5404Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and
540526012, Business and Professions Code.
5406§ 5812. Posting of Notice of Revocation
5407(a) A licensee whose license has been revoked shall conspicuously display a notice on the
5408exterior of the licensee’s premises indicating that the license has been revoked. The notice shall
5409remain continuously on the licensed premises for at least 15 calendar days.
5410(b) The notice shall be two feet in length and 14 inches in width. The notice shall read:
5411NOTICE OF REVOCATION
5412The Bureau of Cannabis Control License(s)
5413Issued For This Premises Has Been Revoked
5414For Violation of State Law
5415(c) Advertising or posting signs to the effect that the licensed premises has been closed or that
5416business has been suspended for any reason other than the reason provided in the decision
5417revoking the license shall be deemed a violation of this section.
5418(d) If the Bureau revokes a license at a licensed premises that has one or more licenses at the
5419location that will remain active after the revocation, the revocation notice shall remain posted for
5420a period of at least 15 calendar days.
5421(e) Failure to display for the time required in this section shall be a violation of this section and
5422may result in additional disciplinary action.
5423(f) A licensee shall notify the Bureau within 24 hours of discovering that the notice under
5424subsection (b) of this section has been removed or damaged to an extent that makes the notice
5425illegible.
5426Authority: Section 26013, Business and Professions Code. Reference: Sections 26011.5 and
542726012, Business and Professions Code.
5428§ 5813. Enforcement Costs
5429(a) In any order in resolution of a disciplinary proceeding for suspension or revocation of a
5430license, the Bureau may request the administrative law judge to direct a licensee found to have
5431committed a violation or violations of the Act, or any regulation adopted pursuant to the Act, to
5432pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case.
5433
5434Bureau of Cannabis Control Regular Regulations Text Page 129 of 136
5435
5436(b) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are
5437not available, signed by the Bureau’s designated representative shall be prima facie evidence of
5438reasonable costs of investigation and prosecution of the case. The costs shall include the amount
5439of investigative and enforcement costs up to the date of the hearing, including, but not limited to,
5440charges imposed by the Attorney General.
5441(c) The administrative law judge shall make a proposed finding of the amount of reasonable
5442costs of investigation and prosecution of the case when requested pursuant to subsection (a). The
5443Bureau may reduce or eliminate the cost award, or remand to the administrative law judge where
5444the proposed decision fails to make a finding on costs requested pursuant to subsection (a).
5445(d) Where an order for recovery of costs is made and timely payment is not made as directed in
5446the decision, the Bureau may enforce the order for repayment in any appropriate court. This right
5447of enforcement shall be in addition to any other rights the Bureau may have as to any licensee to
5448pay costs.
5449(e) In any action for recovery of costs, proof of the decision shall be conclusive proof of the
5450validity of the order of payment and the terms for payment.
5451(f) Except as provided in subsection (g) of this section, the Bureau shall not renew or reinstate
5452any license of any licensee who has failed to pay all of the costs ordered under this division.
5453(g) Notwithstanding subsection (f) of this section, the Bureau may, in its discretion, conditionally
5454renew or reinstate for a maximum of one year the license of any licensee who demonstrates
5455financial hardship and who enters into a formal agreement with the Bureau for reimbursement
5456within that one-year period for the unpaid costs.
5457(h) Nothing in this section shall preclude the Bureau from including the recovery of the costs of
5458investigation and enforcement of a case in any stipulated settlement.
5459Authority: Section 26013, Business and Professions Code; Reference: Sections 125.3, 26012,
5460and 26031, Business and Professions Code
5461§ 5814. Disciplinary Guidelines
5462In reaching a decision on a disciplinary action under the Act and the Administrative Procedures
5463Act (Govt. Code section 11400 et seq.), the Bureau shall consider the disciplinary guidelines
5464entitled “Bureau of Cannabis Control Disciplinary Guidelines November 2017,” which are
5465hereby incorporated by reference. Deviation from these guidelines and orders, including the
5466standard terms of probation, is appropriate where the Bureau in its sole discretion determines that
5467the facts of the particular case warrant such a deviation, e.g., the presence of mitigating factors,
5468the age of the case, or evidentiary problems.
5469Authority: Section 26013, Business and Professions Code; Reference: Section 26012, 26031,
5470Business and Professions Code.
5471
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5474§ 5815. Emergency Decision and Order
5475(a) The Bureau may issue an emergency decision and order for temporary, interim relief to
5476prevent or avoid immediate danger to the public health, safety, or welfare. Such circumstances
5477include, but are not limited to, the following:
5478(1) The Bureau has information that cannabis goods at a licensee’s premises have a reasonable
5479probability of causing serious adverse health consequences or death.
5480(2) To prevent the sale, transfer, or transport of contaminated or illegal cannabis goods in
5481possession of the licensee.
5482(3) The Bureau observes or has information that conditions at the licensee’s premises exist that
5483present an immediate risk to worker or public health and safety.
5484(4) To prevent illegal diversion of cannabis goods, or other criminal activity at the licensee’s
5485premises.
5486(5) To prevent the destruction of evidence related to illegal activity or violations of the Act.
5487(6) To prevent misrepresentation to the public, such as selling untested cannabis goods,
5488providing inaccurate information about the cannabis goods, or cannabis goods that have been
5489obtained from an unlicensed person.
5490(b) Temporary, interim relief, may include a suspension or administrative hold by one or more of
5491the following:
5492(1) The temporary suspension of a license.
5493(2) An order to segregate or isolate specific cannabis goods.
5494(3) An order prohibiting the movement of cannabis goods to or from the premises.
5495(4) An order prohibiting the sale of specific cannabis goods.
5496(5) An order prohibiting the destruction of specific cannabis goods.
5497(c) The emergency decision and order issued by the Bureau shall include a brief explanation of
5498the factual and legal basis of the emergency decision that justify the Bureau’s determination that
5499emergency action is necessary, and the specific actions ordered. The emergency decision and
5500order shall be effective when issued or as otherwise provided by the decision and order.
5501(d) To issue an administrative hold which prohibits activity related to specified cannabis goods,
5502the Bureau shall comply with the following:
5503
5504Bureau of Cannabis Control Regular Regulations Text Page 131 of 136
5505
5506(1) The notice of the administrative hold shall include a description of the cannabis goods subject
5507to the administrative hold.
5508(2) Following notice, the Bureau shall identify the cannabis goods subject to the administrative
5509hold in the track and trace system.
5510(e) A licensee subject to an administrative hold shall comply with the following:
5511(1) Within 24 hours of receipt of the notice of administrative hold, physically segregate all
5512designated cannabis goods in a limited access area of the licensed premises. The licensee shall
5513ensure that all cannabis goods subject to the administrative hold are safeguarded and preserved in
5514a manner that prevents tampering, degradation, or contamination.
5515(2) While the administrative hold is in effect, the licensee shall not sell, donate, transfer,
5516transport, gift, or destroy the cannabis goods subject to the hold.
5517(3) A microbusiness licensee subject to an administrative hold may continue to cultivate any
5518cannabis subject to an administrative hold. If the cannabis subject to the hold must be harvested,
5519the licensee shall place the harvested cannabis into separate batches.
5520(4) A licensee may voluntarily surrender cannabis goods that are subject to an administrative
5521hold. The licensee shall identify the cannabis goods being voluntarily surrendered in the track
5522and trace system. Voluntary surrender shall not be construed to waive the right to a hearing or
5523any associated rights.
5524(f) To issue a temporary suspension the Bureau shall specify in the order that the licensee shall
5525immediately cease conducting all commercial cannabis activities under its license, unless
5526otherwise specified in the order.
5527(g) A microbusiness licensee subject to a temporary suspension may continue to cultivate
5528cannabis at the licensed premises only as prescribed by the Bureau in the order. If the order
5529permits the cannabis to be harvested, the licensee shall place the harvested cannabis into separate
5530batches.
5531(h) The emergency decision and order for temporary, interim relief shall be issued in accordance
5532with the following procedures:
5533(1) The Bureau shall give notice of the emergency decision and order and an opportunity to be
5534heard to the licensee prior to the issuance, or effective date, of the emergency decision and order,
5535if practicable.
5536(2) Notice and hearing under this section may be oral or written and may be provided by
5537telephone, personal service, mail, facsimile transmission, electronic mail, or other electronic
5538means, as the circumstances permit.
5539
5540Bureau of Cannabis Control Regular Regulations Text Page 132 of 136
5541
5542(3) Notice may be given to the licensee, any person meeting the definition of owner for the
5543license, or to the manager or other personnel at the premises.
5544(4) Upon receipt of the notice, the licensee may request a hearing within three (3) business days
5545by submitting a written request for hearing to the Bureau through electronic mail, facsimile
5546transmission, or other written means. The hearing shall commence within five (5) business days
5547of receipt of the written request for hearing, unless a later time is agreed upon by the Bureau and
5548the licensee.
5549(5) The hearing may be conducted in the same manner as an informal conference under section
55505803 of this division however, the timeframes provided in section 5803 shall not apply to a
5551hearing under this section. Pre-hearing discovery or cross-examination of witnesses is not
5552required under this section.
5553(6) Following the hearing, the emergency decision and order shall be affirmed, modified, or set
5554aside as determined appropriate by the Bureau within five (5) business days of the hearing.
5555(i) Within ten (10) days of the issuance or effective date of the emergency decision and order for
5556temporary, interim relief, the Bureau shall commence adjudicative proceedings in accordance
5557with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the
5558Government Code to resolve the underlying issues giving rise to the temporary, interim relief,
5559notwithstanding the pendency of proceedings for judicial review of the emergency decision as
5560provided in subsection (k).
5561(j) After formal proceedings pursuant to subsection (i) of this section are held, a licensee
5562aggrieved by a final decision of the Bureau may appeal the decision to the Cannabis Control
5563Appeals Panel pursuant to Section 26043 of the Act.
5564(k) Notwithstanding administrative proceedings commenced pursuant to subsection (i), the
5565licensee may obtain judicial review of the emergency decision and order pursuant to section
55661094.5 of the Code of Civil Procedure in the manner provided in Section 11460.80 of the
5567Government Code without exhaustion of administrative remedies.
5568(l) The Bureau’s authority provided by this section may be used in addition to any civil, criminal,
5569or other administrative remedies available to the Bureau.
5570Authority: Section 26013, Business and Professions Code and Section 11460.30, Government
5571Code. Reference: Section 26012, Business and Professions Code, Sections 11460.10, 11460.20,
557211460.30, 11460.40, 11460.50, 11460.60, 11460.70, 11460.80, Government Code.
5573Chapter 8. OTHER PROVISIONS
5574Article 1. Research Funding
5575§ 5900. Eligibility
5576(a) Only public universities in California shall be eligible to be selected to receive funds
5577disbursed pursuant to Revenue and Taxation Code section 34019(b).
5578
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5581(b) Subject to available funding, the amounts to be disbursed to the university or universities will
5582not exceed the sum of ten million dollars ($10,000,000) for each fiscal year, ending with the
55832028-2029 fiscal year.
5584Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and
5585Taxation Code; Reference: Section 34019, Revenue and Taxation Code.
5586§ 5901. Request for Proposals
5587A Request for Proposal (RFP) is the document issued by the Bureau, which notifies all eligible
5588fund recipients of the following, at a minimum:
5589(a) The funding available for research related to the Act or regulations adopted pursuant thereto;
5590(b) Disbursement of funds to eligible applicants through a review and selection process,
5591including the criteria that will be used for review and selection;
5592(c) The specified timeframes for the proposal review and selection process, including the
5593deadline for submission of proposals.
5594(d) Proposal requirements, including necessary documentation;
5595(e) Any priorities or restrictions imposed upon the use of the funds;
5596(f) The governing statutes and regulations; and
5597(g) The name, address, and telephone number of a contact person within the Bureau, who can
5598provide further information regarding the process for submission of proposals.
5599Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and
5600Taxation Code; Reference: Section 34019, Revenue and Taxation Code.
5601§ 5902. Selection Process and Criteria
5602(a) The selection process shall involve eligible proposals timely received by the Bureau, in
5603response to an applicable RFP, or similar notice.
5604(b) The Bureau will consider only one proposal per applicant for a given research project.
5605Applicants may submit more than one proposal if the proposals are for separate and distinct
5606research projects or activities.
5607(c) The Bureau will make a selection for funding, based on criteria, including but not limited to:
5608(1) The extent to which the proposed project is designed to achieve objectives as specified in
5609Revenue and Taxation Code section 34019(b).
5610(2) The extent to which the proposed project is designed to achieve measurable outcomes, and
5611the clarity of the measures for success.
5612(3) The extent to which the proposed project is feasible, demonstrated by:
5613(A) A timeline for project completion, including readiness; and
5614(B) Budget detail.
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5617(4) Qualifications of the staff who will be assigned or working on the proposed project.
5618(5) Any other criteria to determine the proposed project’s efficacy in evaluating the
5619implementation and effect of the Act.
5620(d) Applicants selected for funding will be notified in writing, along with the amount of the
5621proposed funding.
5622(e) The Bureau’s selection decision is final and not subject to appeal.
5623Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and
5624Taxation Code; Reference: Section 34019, Revenue and Taxation Code.
5625§ 5903. Release of Funds
5626(a) The Bureau shall not cause funds to be disbursed until the Applicant has executed a Grant
5627Agreement, and any other required documents.
5628(b) Selected recipients shall receive a single disbursement of funds for the duration of the
5629research project.
5630(c) Funds released to the recipient that will be used for the purchase of any equipment related to
5631the research project, shall at a minimum, meet the following conditions:
5632(1) Prior to the purchase of any equipment, the recipient shall obtain written approval from the
5633Bureau.
5634(2) Receipts or other documentation for the purchase of any equipment shall be provided to the
5635Bureau immediately upon purchase and request, and retained pursuant to section 5904 of this
5636division.
5637(d) Any funds that are not used prior to the completion of the research project shall be forfeited.
5638Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and
5639Taxation Code; Reference: Section 34019, Revenue and Taxation Code.
5640§ 5904. Reports and Records
5641(a) The recipient of funds shall provide regular performance reports to the Bureau.
5642(1) Performance reports shall be provided to the Bureau in the following manner:
5643(A) At monthly intervals for research projects with an estimated completion time not exceeding
5644one year.
5645(B) At quarterly intervals for research projects with an estimated completion time exceeding one
5646year.
5647(2) Performance reports shall include, at a minimum:
5648(A) A detailed, estimated time schedule of completion for the research project;
5649
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5652(B) Description of any measurable outcomes, results achieved, or other completed objectives of
5653the research project;
5654(C) Description of remaining work to be completed;
5655(D) Summary of the expenditures of the funds, and whether the research project is meeting the
5656proposed budget, and if not, the reasons for any discrepancies and what actions will be taken to
5657ensure the research project will be completed; and
5658(E) Any changes to the information provided in the proposal, including, but not limited to,
5659change in staff.
5660(b) Recipients shall publish annual reports on their findings, and upon the completion of their
5661research project, and make such reports available to the public. Prior to publishing any reports,
5662the recipient shall provide a copy to the Bureau, at least 30 days prior to the release or publishing
5663of the report.
5664(c) Recipients shall retain all research and financial data necessary to substantiate the purposes
5665for which the funds were spent, for the duration of the funding, and for a period of seven years
5666after completion of the research project. Recipients shall provide such documentation to the
5667Bureau upon request.
5668Authority: Section 26013, Business and Professions Code and Section 34019, Revenue and
5669Taxation Code; Reference: Section 34019, Revenue and Taxation Code.
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