California Unveils Latest Cannabis Rules from January 1, 2018

On Thursday, Bureau of Cannabis Control finally released the long awaited list of regulations that would regulate the golden state’s upcoming marijuana industry. The 276 paged document consists major rules, ranging from regulating the THC limits to prohibiting drone deliveries of cannabis.

Lori Ajax, the chief of the BCC is quoted as referring these regulations as a huge “milestone” and further adds by saying that “there’s still a lot of work to be done. No rest for the weary.” Recreational cannabis market will start from 2018 and with a month to go, it is indispensable for Californians to be acquainted with the current rules. Trust us; it pays to know the law. We’ve prepared a comprehensive version of the aforementioned regulations and its impact upon California’s marijuana consumers.

The rules dictate much more than refraining cannabis users to be within 600 feet of schools and daycare centers. No more pot dealing in strip clubs and no more transport of cannabis products on self driving cars, bicycles and even drones!

Good news for big farms:

The new guidelines make no mention of introducing size restrictions for marijuana farms and nurseries. Moreover, big farms will continue to thrive in Mendocino and Monterey. 

Modified THC Limits:

Edible products are required to maintain maximum THC levels of 10 mg per serving and 100 mg per package. On the other hand, products such as tinctures, capsules and topicals can contain up to 1000 mg of THC per package for recreational use and 2000 mg for medical marijuana users.

This means, Californians can no longer buy popular high potency items such as Korova Black Bar Brownie.

Heavy taxation to follow for recreational users:

Medical cannabis would witness an increase in taxation too, but not as high as recreational cannabis. A small bag of good quality cannabis, which was previously priced at $35 would now cost as high as $60. According to experts, taxes on recreational cannabis can be as high as 45%, whereas medical cannabis users can witness a 25% reduction in taxes. To know more about how you can avail tax savings with a medical card, make sure to read our last blog post.

Licensing to commence from January 1:

These emergency regulations would allow the state of California to begin issuing temporary licenses for growers, distributors and sellers in just one month, thus providing the basic structure for business operations to follow. Under General Provisions (Article 2), California has imposed the following licensing conditions-

  • Every individual manufacturing cannabis products must obtain & maintain a valid manufacturer license from the Department for every premise where cannabis products are to be manufactured.
  • No individual can manufacture cannabis products without getting a license.
  • Manufacturers of cannabis products intending sale in the medicinal market require a prior acquirement of an M license.
  • Whereas, manufacturers need to obtain an A license to produce cannabis products intended for recreational market.

(e) Licenses issued would be non-transferable.

Application requirements for a commercial cannabis license:

All applicants for a commercial cannabis license shall have at least one individual who meets the definition of “owner” under Business and Professions Code section 26001(al) and is required to submit the information required of owners under section 5002. (b)

The term “Owner” includes any of the following:

  • Any person with an aggregate ownership interest of 20 % or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, encumbrance.
  • Chief executive officer of a nonprofit or other entity.
  • A member of the board of directors of a nonprofit.
  • Any individual who would participate in the direction, control, or management of the person applying for a license.

For a complete list of licensing fees, please refer to the list of guidelines compiled by the Bureau of Cannabis Control Proposed Text of Regulations.

Who cannot apply for a license?

According to the official website, a state issued license can’t be held by any individual “holding office in, or employed by, any agency of the State of California or any of its political subdivisions when the duties of such person have to do with the enforcement of the Act or any other penal provisions of law of this State prohibiting or regulating the sale, use, possession, transportation, distribution, testing, manufacturing, or cultivation of cannabis goods.”

Packaging & Labeling:

Furthermore, cannabis product labels must fulfill the following requirements-

  1. Cannabis products should be packaged different than other food packages while edible packaging should be stored in opaque containers.
  2. Care must be taken to ensure that cannabis packaging should be not be made in a manner that is considered attractive to children.
  3. And in case cannabis products include multiple servings, it should be re-sealable and child resistant.
  4. The statute requires that labels will not be attractive to individuals under age 21 and include mandated warning statements and the amount of THC content.
  5. Cannabis labels are prohibited to be decorated with cartoons and other marketing labels meant to attract children. Manufacturers are required to refrain from using the term “candy” in their branding.

Growing license:

The CDPH will issue temporary licenses allowing businesses to commence commercial cannabis activity. These licenses will be valid for 120 days after the date of the issue, with an option of extending the period up to 90 days if the business has successfully completed a complete annual license application, available on the official website. No fee would be charged for a temporary license. Although fees for obtaining these licenses depend upon the license type and would range from $1,205 to $77,905.

Miscellaneous rules:

Apart from the regulations mentioned above, Californian marijuana users are also required to comply with the following regulations:

  • Cannabis operations cannot operate within 600 feet of any school or youth center. In addition to this, these operations must shut down by 10 p.m. and require 24-hour video surveillance.
  • Shopkeepers are allowed to give free cannabis products to only medical patients or their caregivers.
  • A special license is required to organize a cannabis event.
  • Businesses can advertise their goods, but only in those outlets where at least 71.6 percent of the audience is ”reasonably expected to be 21 years of age or older.”
  • Businesses are prohibited from mixing cannabis with alcohol, nicotine, caffeine and even seafood.

A medical card- A must have for every Californian!

Gifts and product giveaways are not allowed for recreational marijuana users. On the other hand, medical users are exempt from this restriction under certain circumstances. Recognizing the need for low cost, easier access to cannabis for veterans and lower income individuals, this is a huge step forward for California’s cannabis consumers. Furthermore, medical card holders will get twice the THC limit prescribed for edibles as well. On top of that, medicinal user will also be eligible to carry cannabis products with them on a plane.

While searching for a reliable, professional and experienced team of medical card providers, place your trust in only the best. Visit Online Medical Card and get started right now.

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