Overview of Cannabis Licenses if Prop. 64 Passes Offered in a Letter to the Editor
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Karen Byars, a cannabis businesswoman in Mendocino, writes a letter to help growers understand how licenses under Proposition 64 will differ from or replicate those that are already law under MCRSA which passed about a year ago.
To all the Redheaded Blackbelt readers that are CA cannabis cultivators, live in a cultivating community or plan to seek a license for cultivation in CA, here is my best attempt to explain the license types for Prop 64 once it passes. Also comparing those license types to the current Medical Cannabis Regulatory Safety Acts (MCRSA) licenses.
Prop 64’s regulatory provisions are largely patterned on the Medical Cannabis Regulatory Safety Acts (MCRSA), recently passed by the legislature and effective Jan 1, 2016. Licenses for medical and adult-use would be distinct, but managed by the same agency in the Department of Consumer Affairs.
The MCRSA cultivation license for medical cannabis established under AB 266 (19300.7)) and SB 643 (19331(g)) are:
(a) Type 1 = Cultivation; Specialty outdoor. Up to 5,000 square ft of canopy, or up to 50 noncontiguous plants
(b) Type 1A = Cultivation; Specialty indoor. Up to 5000 sq ft
(c) Type 1B = Cultivation; Specialty mixed-light. Using exclusively artificial lighting.
(d) Type 2 = Cultivation; Outdoor. Up to 5000 sq ft, using a combination of artificial and natural lighting
(e) Type 2A = Cultivation; Indoor. 5001 -10,000 sq ft.
(f) Type 2B = Cultivation; Mixed-light. 5001 -10,000 sq ft
(g) Type 3 = Cultivation; Outdoor. 10,001 sq ft – 1 Acre
(h) Type 3A = Cultivation; Indoor.. 10,001 – 22,000 sq ft
(i) Type 3B = Cultivation; Mixed-light. 10,001 – 22,000 sq ft
(j) Type 4 = Cultivation; Nursery.
(k) Type 6 = Manufacturer 1 for products not using volatile solvents.
(l) Type 7 = Manufacturer 2 for products using volatile solvents.
(m) Type 8 = Testing
(n) Type 10 = Dispensary; General
(o) Type 10A = Dispensary; No more than three retail sites
(p) Type 11 = Distribution
(q) Type 12 = Transporter
MCRSA Just added is a new license when Assembly Bill No. 2516 was passed this year to include a Type 1C, or “specialty cottage,”
In Prop 64 the license types are:
(1) Type I = Cultivation; Specialty outdoor; Small – same as MRCSA
(2) Type IA == Cultivation; Specialty indoor; Small – same as MRCSA
(3) Type IB = Cultivation; Specialty mixed-light; Small – same as MRCSA
(4) Type 2 = Cultivation; Outdoor; Small – same as MRCSA
(5) Type 2A = Cultivation; Indoor; Small – same as MRCSA
(6) Type 2B = Cultivation; Mixed-light; Small – same as MRCSA
(7) Type 3 = Cultivation; Outdoor; Medium – same as MRCSA
(8) Type 3A = Cultivation; Indoor; Medium – same as MRCSA
(9) Type 3B = Cultivation; Mixed-light; Medium – same as MRCSA
(10) Type 4 = Cultivation; Nursery – same as MRCSA
(11) Type 5 = Cultivation; Outdoor; Large – not available till 2023
(12) Type 5A =Cultivation; Indoor; Large – not available till 2023
(13) Type 5B = Cultivation; Mixed-light; Large – not available till 2023
(14) Type 6 = Manufacturer 1 – same as MRCSA
(15) Type 7 = Manufacturer 2 – same as MRCSA
(16) Type 8 = Testing – same as MRCSA
(17) Type 10 = Retailer – same as MRCSA
(18) Type 11 = Distribution – mandatory requirement in Prop64, there is simply no restriction against it being owned by holders of other licenses as there is in the MCRSA. Micro business type license can also do their own distribution.
(19) Type 12 =Microbusiness (MCRSA’s type 12 license if for transportation which is not required under Prop 64)
The main differences between MCRSA and Prop 64 license types are:
1. Prop 64 offers a Microbusiness license, Type 12, which can be found in Chapter 7. Retailers and Distributors Page 28 of Prop 64 A (3) “Microbusiness, “for the cultivation of marijuana on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee complies with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities.
Compared to MRCSA’s (4) Type 1C, or “specialty cottage,” for cultivation using a combination of natural and supplemental artificial lighting at a maximum threshold to be determined by the licensing authority, of 2,500 square feet or less of total canopy size for mixed-light cultivation, up to 25 mature plants for outdoor cultivation, or 500 square feet or less of total canopy size for indoor cultivation, on one premises.
2. Prop 64 has a Type 5 and 5a license for large grows that will not be available till 2023 and will have to approved by the legislation and only approved if the need for cannabis is not being met by current production.
Compared to MCRSA who skips Type 5 license to be added later by legislation if needed. They have a place holder for a large scale license that is why when you look at MCRSA’s licensing levels there is not a Type 5 or Type 5a license. With Prop 64 there is a 5 year waiting period, with MCRSA there is not, they could vote to approve that license type next year.
3. Prop 64 is for Adult Use only and does not interfere with a medical cannabis patients rights to self provide their own cannabis that is recommended by their doctor.
MCRSA is for medical cannabis only. MCSRA does not interfere with a medical cannabis patients rights to self provide their own cannabis that is recommended by their doctor. MCRSA does sunset the protections that SB420 allowed patients and providers.
4. Prop 64 does not offer a Transportation license type.
MCRSA requires that all cannabis no matter what licensed type is transported by a Type 12 licensed transportation company.
5. Prop 64 the Type 11 Distribution license — it is still a mandatory requirement in AUMA, there is simply no restriction against it being owned by holders of other licenses as there is in the MCRSA.
MCRSA requires all medical cannabis go through a Type 11 Distribution licensed company.
-Also under MCRSA you can combine certain license types and some that have to stand alone. Here’s how MCRSA is set up I would assume Prop 64 will be the same or similar license type combining. I got this information off the CA growers association website that is a great resource on MCRSA and how it will implemented. http://www.calgrowersassociation.org/licenses .
A licensee may only hold a state license in up to two separate license categories, as follows:
Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a Type 6 or 7 state license.
Type 6 or 7 licensees, or a combination thereof, may also hold either a Type 1, 1A, 1B, 2, 2A, or 2B state license.
Type 6 or 7 licensees, or a combination thereof, may also hold a Type 10A state license.
Type 10A licensees may also hold either a Type 6 or 7 state license, or a combination thereof.
Type 1, 1A, 1B, 2, 2A, or 2B licensees, or a combination thereof, may also hold a Type 10A state license.
Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B state license, or a combination thereof.
Type 11 licensees shall apply for a Type 12 state license, but shall not apply for any other type of state licenses
A Type 10A licensee may apply for a Type 6 or 7 state license and hold a 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination thereof if, under the 1, 1A, 1B, 2, 2A, 2B, 3, 3A, 3B, 4 or combination of licenses thereof, no more than four acres of total canopy size of cultivation by the licensee is occurring throughout the state during the period that the respective licenses are valid. All cultivation pursuant to this section shall comply with local ordinances.
There is more but I will stop here and get feedback on this post. I do encourage anyone considering applying for a license if Prop 64 is passed to read pages 17 to 40 of the initiative to further understand how these license types will be implemented.
Here a link to the full text of Prop 64.https://www.oag.ca.gov/…/i…/pdfs/15-0103%20(Marijuana)_1.pdf?
@Californians for Responsible Marijuana Reform
Karen Byars, founder Mendocino Cannabis Resource, LLC