BCC Regulates Technology Platforms
California moved a step closer Friday to allowing marijuana deliveries in communities that have banned retail sales of the drug as regulators rebuffed cities and police chiefs who are opposed to the rule.
The proposal is a major issue that could ultimately end up in court as the state continues to set myriad rules for how pot is
Cities have been able to ban retail sales, but state law says local governments cannot prevent cannabis deliveries on public roads so the state — at this point — rejected the plea from opponents who said it would jeopardize public safety and cause other problems.
However, they did drop a bomb with respect to technology platforms such as Weedmaps and Eaze. Well…here is the new proposed regulation.
§ 5415.1. Deliveries Facilitated by Technology Platforms
(a) A licensed retailer or licensed microbusiness shall not sell or otherwise transfer any cannabis goods to a customer through the use of an unlicensed third party, intermediary business, broker, or any other business or entity.
(b) Notwithstanding subsection (a) of this section, a licensed retailer or licensed microbusiness may contract with a service that provides a technology platform to facilitate the sale and delivery of cannabis goods, in accordance with all of the following:
(1) The licensed retailer or licensed microbusiness does not allow for delivery of cannabis goods by the technology platform service provider.
(2) The licensed retailer or licensed microbusiness does not share in the profits of the sale of cannabis goods with the technology platform service provider, or otherwise, provide for a percentage or portion of the cannabis goods sales to the technology platform service provider.
(3) The licensed retailer or licensed microbusiness shall not advertise or market cannabis goods in conjunction with the technology platform service provider, outside of the technology platform, and shall ensure that the technology platform service provider does not use the licensed retailer’s or licensed microbusiness’s license number or legal business name on any advertisement or marketing that primarily promotes the services of the technology platform
(4) The licensed retailer or licensed microbusiness shall ensure the following information is provided to customers:
(A) Any cannabis goods advertised or offered for sale on or through the technology platform shall disclose, at a minimum, the licensed retailers or licensed microbusiness’s legal business name, and license number.
(B) Customers placing an order for cannabis goods through the technology platform shall be able to easily identify the licensed retailer or licensed microbusiness that each cannabis good is being ordered or purchased from. This information shall be available to the customer prior to the customer placing an order or purchasing the cannabis goods.
(5) All required sales invoices and receipts, including any receipts provided to the customer, shall disclose, at a minimum, the licensed retailer’s or licensed microbusiness’s legal business name and license number.
(6) All other deliveries, marketing, and advertising requirements under this division are complied with.
It will certainly be interesting to see how Weedmaps, Eaze, and other players adapt to this proposal.
BCC Regulates Technology Platforms
CDPH-MCSB Proposed Reg. Update
CDPH-MCSB Proposed Reg. Update
CDPH-MCSB Proposed Reg. Update – Manufactured Cannabis Safety Board [“MCSB”] of the California Dept. of Public Health [“CDPH”] made very substantial changes to the Proposed Regulations in its October 19, 2018 revisions. While we have updated our FAQ’s and
Sections Deleted By New Regs
§40232. Requirements for Personnel
§40236. Premises Construction and Design.
§40238. Sanitary Operations.
§40240. Sanitary Facilities and Controls
§40242. Equipment and Utensils.
§40252. Quality of Raw Materials and Ingredients.
§40254. Manufacturing Operations.
§40256. Hazard Analysis.
§40258. Preventive Controls.
The following DO NOT constitute manufacturing:
The preparation of pre-rolls by a licensed distributor in accordance with the requirements of the Bureau specified in Section 5303 of Division 42 of Title 16 of the California Code of Regulations; [§40100 (dd)(2)(B)] or
The addition of cannabinoid content on the label of a package of cannabis or cannabis product by a distributor in accordance with Section 40409.
The addition of an OSHA training requirement:
For an applicant entity with more than one employee, the applicant employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal/OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. [§40128(b)(5)]
§40220. Permissible Extractions is modified to require that CO2 gas used for extraction shall be food grade;
New Sections Added By Proposed Regulations
§40179. Death, Incapacity, or Insolvency of a Licensee.
(a) In the event of the death, incapacity, receivership, assignment for the benefit of creditors or other event rendering one or more owners’ incapable of performing the duties associated with the license, the owner or owners’ successor in interest (e.g., appointed guardian, executor, administrator, receiver, trustee, or assignee) shall notify the Department in writing, within 10 business days.
(b) To continue operations or cancel the existing license, the successor in interest shall submit to the Department the following:
(1) The name of the successor in interest;
(2) The name of the owner(s) for which the successor in interest is succeeding and the license number;
(3) The phone number, mailing address, and email address of the successor in interest; and
(4) Documentation demonstrating that the owner(s) is incapable of performing the duties associated with the license such as a death certificate, or a court order, and documentation demonstrating that the person making the request is the owner or owners’ successor in interest such as a court order appointing guardianship, receivership, or a will or trust agreement.
(c) The Department may give the successor in interest written approval to continue operations on the licensed business premises for a period of time specified by the Department:
(1) If the successor in interest or another person has applied for a license from the Department for the licensed premises and that application is under review; (
2) If the successor in interest needs additional time to destroy or sell cannabis or cannabis products; or
(3) At the discretion of the Department.
(d) The successor in interest is held subject to all terms and conditions under which a state cannabis license is held pursuant to the Act.
(e) The approval pursuant to subsection (c) creates no vested right to the issuance of a state cannabis license.
§40192. Registration to Operate a Shared-Use Facility.
(a) No licensee shall operate as a shared-use facility without prior approval by the Department.
(b) To register as a shared-use facility, a Type 7, Type 6, or Type N licensee shall submit the following to the Department through MCLS:
(1) A copy of the valid license, permit, or other authorization issued by the local jurisdiction that enables the licensee to operate as a shared-use facility. The Department shall contact the applicable local jurisdiction to confirm the validity of the local authorization Upon receipt of the application for registration, the Department shall contact the applicable local jurisdiction to confirm the validity of the authorization. If the local jurisdiction does not respond within 10 calendar days, the Department shall consider the authorization valid.
(2) A registration form prescribed by the Department, which includes the following information:
(A) The proposed occupancy schedule that specifies the days and hours the common-use area will be available for use by Type S licensees and when the common use area will be used by the primary licensee. The occupancy schedule shall allow for adequate maintenance, cleaning, and sanitizing between uses by individual licensees.
(B) A diagram indicating:
(i) Each designated area for Type S licensee(s).
(ii) The common-use area, including identification of any shared equipment.
(c) The Department shall notify the Type 7, Type 6, or Type N licensee upon approval of the registration to operate as a shared-use facility. The notification shall be made through MCLS.
(d) At least one business day prior to a Type S licensee commencing manufacturing operations at a registered shared-use facility, the primary licensee shall provide written notification to the Department. The notification to the Department shall include the Type S licensee’s business name, contact person, contact phone number, and license number. The primary licensee shall also provide an updated occupancy schedule that includes the Type S licensee and an updated diagram that specifies the Type S licensee’s designated area. A notification shall be provided by email or through MCLS.
(e) A primary licensee that wishes to discontinue operation as a shared-use facility may cancel its registration by providing written notice to the Department and each Type S licensee authorized to use the shared-use facility at least 30 calendar days prior to the effective date of the cancellation.
Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26051.5; 26055; and 26130, Business and Professions Code.
Changes to Manufacturing Process Definitions §40230.
DELETED – (a) “Actual yield” means the quantity that is actually produced at any appropriate step of manufacture or packaging of a particular cannabis product. (b) “Adequate” means that which is necessary to accomplish the intended purpose in keeping with good public health practice to ensure cannabis product quality.
ADDED – (d) “Easily cleanable” means a characteristic of a surface that allows effective removal of soil, food residue, or other organic or inorganic materials by normal cleaning methods
DELETED – (i) “In-process material” means any material that is fabricated, compounded, blended, ground, extracted, sifted, sterilized, derived by chemical reaction, or processed in any other way for use in the manufacture of a cannabis product.
ADDED – (l) “Potable” means water that meets the requirements of Health and Safety Code section 113869.
ADDED – (u) “Smooth” means any of the following: (1) A contact surface that is free of pits, pinholes, cracks, crevices, inclusions, rough edges, and other surface imperfections detectable by visual or tactile inspection. (2) A floor, wall, or ceiling having an even or level surface with no roughness or projections that render it difficult to clean.
ADDED – (v) “Utensil” means an implement, tool, or container used in the storage, preparation, manufacture, or processing of cannabis and cannabis products. In addition to kitchenware, examples of utensils include, but are not limited to, gloves, screens, sieves, implements to create pre-rolls, buckets, and scissors.
DELETED – (v) “Theoretical yield” means the quantity of a particular cannabis product that would be produced at any appropriate step of manufacture or packaging, based upon the number of components or packaging to be used, in the absence of any loss or error in actual production
ADDED – (y) “Yield” means the quantity of a particular cannabis product expected to be produced at a given step of manufacture or packaging, as identified in the master manufacturing protocol. The expected yield is based upon the number of components or packaging to be used, in the absence of any loss or error in actual production. “Actual yield” means the quantity of a particular cannabis product that is actually produced at a given step of manufacture or packaging that is recorded in the batch production record.
Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26001; 26120; and 26130, Business and Professions Code.
ADDED -§40235. Quality Control Program
ADDED -§40240. Grounds, Building, and Manufacturing Premises
ADDED – §40243. Equipment and Utensils
ADDED – §40246. Personnel
ADDED – §40248. Cannabis Product Components
ADDED – §40250. General Provisions. Manufacturing Processes and Procedures [SUBSTANTIALLY REVISED]
ADDED – §40253. Product Quality Plan
ADDED – §40255. Master Manufacturing Protocol.
ADDED – §40258. Batch Production Record.
ADDED -§40277. Weights and Measures. – (c) Whenever the licensee is determining the weight, or measurement measure or count of cannabis and cannabis products is determined as for the purposes specified in subsection (a), products the weight, measure, or count shall be weighed determined by a licensed weighmaster, and shall be issued a certificate consistent with the requirements in as required by Chapter 7 (commencing with section 12700) of Division 5 of Business and Professions Code. The weighmaster certificate required under section 12711 of the Business and Professions Code shall not be required when cannabis or cannabis products are weighed for entry into the track-and-trace system.
ADDED – §40290. Waste Management. – SUBSTANTIALLY REVISED
ADDED – §40330. Failed Product Batches. – SUBSTANTIALLY REVISED
ADDED – §40401. Release to Distributor as Finished Product – (a) Prior to the release of a cannabis product to a distributor, a licensee shall ensure that the product is in finished form and is labeled and packaged in its final form for sale. (b) For purposes of this section, “final form” does not include: (1) Labeling of cannabinoid content if the cannabinoid content is to be added to the label at the distribution premises after issuance of the Certificate of Analysis in accordance with section 40409; or (2) Placing the cannabis or cannabis product into child-resistant packaging. This provision shall expire on December 31, 2019.
ADDED – §40403. General Provisions – (1) All of the information specified in Sections 40405 and 40406, for For edible cannabis products, topical cannabis products, suppositories, or orally-consumed concentrates, all of the information specified in Sections 40405 and 40406, except for cannabinoid content. (2) The universal symbol as prescribed in Section 40412, for For inhaled products (e.g., as dab, shatter, and wax), the universal symbol as prescribed in Section 40412.
ADDED – §40405. Primary Panel Labeling Requirements: Manufactured Products – (b) Cannabinoid content may be included on the primary panel. Cannabinoid content for manufactured cannabis products shall be labeled as specified in Section 40409. (bc) Nothing in this section prohibits the inclusion of additional information on the primary panel, provided that the label does not violate the requirements of Section 40410.
ADDED – §40409. Cannabinoid Content Labeling. – SUBSTANTIALLY REVISED
ADDED – §40417. Child-Resistant Packaging Requirements.
(a) Beginning January 1, 2020, a package containing cannabis or cannabis products transferred to a distributor for retail sale shall be child-resistant, as follows:
(1) An edible product, an orally-consumed concentrate, or a suppository shall be child-resistant for the life of the product. A package that contains more than a single serving is not required to be child-resistant if each individual serving is packaged in child-resistant packaging.
(2) Cannabis or a cannabis product intended to be inhaled or a cannabis product that is applied topically may utilize packaging that is child-resistant only until first opened, if the package is labeled with the statement “This package is not child-resistant after opening.”
(b) The following packages are considered child-resistant for purposes of this chapter:
(1) Any package that has been certified as child-resistant under the requirements of the Poison Prevention Packaging Act of 1970 Regulations (16 C.F.R. §1700.15(b)(1)) (Rev. July 1995), which is hereby incorporated by reference.
(2) A bottle sealed with a pry-off metal crown cork style bottle cap, provided that the bottle contains only a single serving.
(3) Plastic packaging that is at least 4 mils thick and heat-sealed without an easy-open tab, dimple, corner, or flap, provided that the package contains a cannabis product described in Subsection (a)(2) or is a cannabis product that is only a single serving.
(c) Until the date specified in subsection (a), the child-resistant package requirement specified in section 26120 of the Act may be met through the use of a child-resistant exit package at retail sale.
Authority: Sections 26012; 26013; and 26130, Business and Professions Code. Reference: Sections 26011.5; 26120; and 26121, Business and Professions Code.
ADDED – §40550. Inspections – (g) The Department may collect evidence related to any alleged violation of the Act or the regulations for the purpose of preserving such evidence during the course of an investigation and any subsequent enforcement proceedings. (h) The Department may copy any materials, books, or records of any licensee or their agents pertaining to the commercial cannabis business.
Updated FAQ’s – License Info – New Regs
Updated FAQ’s – License Info – New Regs
Updated FAQ’s – License Info – New Regs – we have updated and added over 200 FAQ’s and the associated licensing requirement pages. A detailed table of links to the newly released forms from BCC, CDPH – MCSB and CDFA – CalCannabis is also provided.
Brand New FAQs for
What are Manufacturing Processes Procedures?
What are Cannabis Product Components?
What are Manufacturing Practices Definitions
What are Manufacturer video surveillance reqs?
What is a shared-use facility?
What has branded merchandise approval?
What is required legal use of the business name?
What are information req details – Owner Submission?
You can see them here
Newly Revised Compliance FAQ’s
What are the record-keeping and reporting requirements for Cultivation?
What are the Manufacturer Track and Trace requirements?
What are the track and trace requirements?
What are record retention requirements?
You can find revised FAQ’s here.
Newly revised rules for:
- IRS Contacts CA
- IRS Tax Reform News
- IRS CA Resources
- IRC CCM 201504011
- Cannabis Biz – Paying Taxes
- Apply – TIN
- CA EDD
- CA FTB
- FTB – Cannabis Biz Tax
- FTB Cannabis CA Tax Laws
- CA Criminal CCTET
- CDFTA Tax Resp.
- CDTFA Cannabis Tax Reg.
- Tax Guide for Cannabis Biz
- CA Taxes for Distributors
- CDFTA Cannabis Resources
- CDFTA – Issue Paper
- Weights and Measures
New Regulatory Agency Forms
- 15-Day Notice of Modification to Text of Proposed Regulations
- Bureau of Cannabis Control – Modified Text of Proposed Regulations
- Transportation Procedures, Form BCC-LIC-015
- Non-Laboratory Quality Control Procedures, Form BCC-LIC-017
- Security Procedures, Form BCC-LIC-018
- Delivery Procedures, Form BCC-LIC-020
- Sampling Procedures, Form BCC-LIC-021
- Sampling Preparation Procedures, Form BCC-LIC-022
- Data Package Cover Page and Checklist, Form BCC-LIC-024
- CEQA Exemption Petition, Form BCC-LIC-025
- CEQA Project-Specific Information, Form BCC-LIC-026
- Bureau Notification and Request, Form BCC-LIC-027
- Poison Prevention Packaging Act of 1970 Regulations, (16 C.F.R. §1700.15(b)(1)) (Rev. July 1995)
Updated FAQ’s – License Info – New Regs
Managing Director & CEO of integrated transactional financial advisory, tax, and technology consulting firm – aBIZinaBOX Inc New York, Chicago, and OaklandCPA.CITP.CISM.CGEIT.CGMAExpertise with: Alt. Investments/Private Equity, Real Estate, Professional Services, CA Cannabis, Tech Start-Ups and Distressed Assets/DebtTechnology Certifications including:Advanced & High Complexity Cloud Integrator AICPA PCPS, CAQ,, IMTA, CITP ISACA CGEIT, CISMState CPA Societies in California, Florida, Illinois, New York and TexasExpertise with Regulatory Compliance – US – HIPAA, FINRA, SEC Rule 17(a)(3)/(4), eDiscovery, FINCEN – EU- EBA, ESMA, EIOPA UK – BoE, PRA, FCA View all posts by abizcannabis