There are big updates coming from California’s commercial cannabis industry. This week, the Department of Food and Agriculture released a statement regarding delays in processing temporary cannabis cultivation licenses. In other licensing news, Riverside County has permitted commercial cannabis activity in its unincorporated areas. More important updates have come from Banning, Brisbane, San Francisco, and Emeryville.

The California Department of Food and Agriculture: Temporary Cannabis Cultivation Licenses

The California Department of Food and Agriculture released a statement announcing that temporary cannabis cultivation license applications submitted after December 1, 2018 will not be processed in time for January 1, 2019. They also mentioned that they will not be able to issue any more temporary licenses after December 31, 2018.

In order to receive an extension, applicants must submit a complete annual cultivation license application, and pay for all the necessary fees, before December 31, 2018. If an applicant is in the process of acquiring a local permit and will not have all the necessary information that should be included in the annual state license application, a narrative providing an explanation for the missing information will be accepted, on the premise that as soon as a local permit is obtained, that information is updated with the Department.

Submitting an annual cultivation licensing application with the Department will allow them to determine whether the applicant qualifies for an annual license or a provisional license in 2019. It is important for prospective cultivators to submit these applications because pursuant to Business and Professions Code section 26038, individuals engaging in commercial cannabis cultivation without a license issued by the California Department of Food and Agriculture will be subject to civil penalties and all cannabis cultivated may be ordered destroyed.

Applicants may submit inquiries by calling 1-800-833-225-4769 or by emailing them to calcannabis@cdfa.ca.gov.

There is more information on the CalCannabis Website.

Riverside County, CA

Last October 23, 2018, the Board of Supervisors approved an ordinance establishing the permitting process and regulations for commercial cannabis operations in the unincorporated areas of Riverside County. The ordinance will go into effect on December 26, 2018, which will also be the first day that the Planning Department will begin accepting applications for commercial cannabis testing, distribution, manufacturing (volatile and non-volatile), and wholesale nurseries. No applications for retail and cultivation will be accepted on December 26, 2018.

For those interested in submitting applications for retail and cultivation, the Board will include a pre-registration process and the issuance of request proposals from the Planning Department which is anticipated to begin in January 2019.

More information can be accessed on the County’s Website.

Banning, CA

Banning’s City Council will introduce and conduct the first reading of Ordinance 1531 and 1527.

Ordinance 1531 would allow and regulate storefront and non-storefront retail cannabis facilities, while Ordinance 1527 establishes procedures for the issuance of cannabis regulatory permits for cannabis retailers.

These ordinances will take effect only if Measure O, the cannabis business tax measure, passes on November 6, 2018.

More information can be accessed on the City’s website.

Brisbane, CA

The Commission recommended the ordinance with the Zoning Text Amendment RI 6-18, to amend Chapter 17.33 of Title 17, to modify the permitted hours of operation for cannabis businesses changing closing hours from 7 p.m. to 10 p.m.

Brisbane permits warehousing, distribution, manufacturing and delivery only retail as conditionally permitted uses in Crocker Industrial Park. Research and Development involving cannabis will also be allowed in the Industrial Park and Southwest Bayshore zones.

To apply for a permit, applicants are required to complete a Use Permit application and Supplemental Cannabis Business Compliance Checklist.

All information can be accessed on the City’s Website.

San Francisco, CA

The Committee is discussing passing an ordinance to amend the Police Code that will affect the following:

1. Defining ownership interest in Cannabis Businesses.
2. Modify the Cannabis Equity Incubator Program requirements.
3. Extend the duration of Temporary Cannabis Business Permit by one year.
4. Authorize the Director of the Office of Cannabis to issue cannabis Business Permits to Medical Cannabis Dispensaries that have been forced to discontinue operations due to a “No-Fault” Lease Termination before December 31, 2018.
5. Modify the order in which the Director may review and process Cannabis Business Permits.
6. Require Cannabis Business Permit amendments when a change in ownership results in a decrease in Equity Applicant Ownership.
7. Revise Cannabis Permit application requirements.
8. Require cannabis businesses to comply with all permit conditions whether or not they are currently engaging in permitted activity.
9. Modify the amount of cannabis that may be delivered or sold to a customer.
10. Authorize cannabis microbusinesses to conduct either storefront or delivery, but not both, and reducing categories from four (4) permitted activities to three (3).
11. Amend the health code and extend it to one (1) year, the date on which Article 33 (Medical Cannabis Act) expires by law.

More information can be accessed on the City’s Website.

Emeryville, CA

The City Council has established Initial Tax Rates for a Cannabis License Tax contingent upon Measure S, which may take effect following the November 6, 2018 General Election.

More information can be accessed on the City’s Website.

Interested to know more about California’s commercial cannabis industry? Contact busin a Team Member today!

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