SB-94; MAUCRSA Basics- License Types

On June 27, 2017, Governor Brown signed SB-94, a budget trailer bill that makes significant changes to California’s commercial cannabis regulatory scheme. The new law, called the “Medicinal and Adult Use Cannabis Regulation and Safety Act” (MAUCRSA) combines the medical and adult-use cannabis systems into one licensing structure with the same regulatory framework governing medical and adult use facilities.

There are a number of revisions, additions and deletions from the original “Medical Cannabis Regulation and Safety Act (MCRSA) that we will cover in a series of blog posts, but today we will focus on delineating the license types.

Under MAUCRSA, the following commercial cannabis licenses will be available starting January 1, 2018, so long as the applicant has the approval of their local jurisdiction. Licenses will be designated as either “M” (medical) or “A” (adult-use), except for Testing facilities.

Cultivation licenses (Types 1-4) are broken down into four categories based upon the size of the grow, and the type of light used-i.e., natural (outdoor), exclusively artificial (indoor), or mixed (a combination of natural and supplemental artificial).

  1.  Type 1– Cultivation; Specialty Outdoor; Small- up to 5,000 sq. ft., or up to 50 mature plants on non-contiguous plots
  2. Type 1A– Cultivation; Specialty Indoor; Small – up to 5,000 sq. ft.
  3. Type 1B– Cultivation; Specialty mixed-light; Small -up to 5,000 sq. ft.
  4. Type 1C – Cultivation; Specialty Cottage; Small – up to 25 mature plants for outdoor; up to 500 sq ft for indoor; or up to 2,500 sq ft for mixed-light
  5. Type 2– Cultivation; Outdoor; Small – 5,001 to 10,000 sq ft
  6. Type 2A– Cultivation; Indoor; Small – 5,001 to 10,000 sq ft
  7. Type 2B – Cultivation; Mixed-light; Small – 5,001 to 10,000 sq ft
  8. Type 3 – Cultivation; Outdoor; Medium – 10,001 sq ft to one acre
  9. Type 3A – Cultivation; Indoor; Medium – 10,001 to 22,000 sq ft
  10. Type 3B – Cultivation; Mixed-light; Medium – 10,001 to 22,000 sq ft
  11. Type 4 – Cultivation; Nursery; Outdoor/Indoor/Mixed-Light – up to one acre
  12. Type 5 – Cultivation; Outdoor; Large -Greater than one acre, inclusive, of total canopy size on one premises, but no license issued before January 1, 2023
  13. Type 5A – Cultivation; Indoor; Large -Greater than 22,000 square feet, inclusive, of total canopy size on one premises, but no license issued before January 1, 2023
  14. Type 5B – Greater than 22,000 square feet, inclusive, of total canopy size on one premises, but no license issued before January 1, 2023

Manufacturing licenses are separated into two categories based upon the type of solvent used.

  1.  Type 6 – Manufacturing Level 1; Using non-volatile solvents – Extraction and/or infusion processes, including processing, preparing, making, packaging, or labeling of cannabis
  2. Type 7 – Manufacturing Level 2; Using volatile solvents – Extraction and/or infusion processes, including processing, preparing, making, packaging, or labeling of products containing cannabis (i.e. concentrates, edibles, and oils)products (i.e. concentrates, edibles, and oils)

Testing licenses are designated Type 8.  The DPH is responsible for ensuring that all cannabis is tested prior to delivery to dispensaries or other businesses, and will specify how such testing will be conducted. Type 8 license holders must test for THC, cannabinoids, contaminants, microbiological impurities, among other compounds

  1. Type 8 – Testing Laboratory – Perform quality assurance testing re compliance with state law regarding content (i.e. THC, CBD, CBDA, etc), pesticide residue, contaminants, impurities, and labeling.

Dispensary licenses:

  1. Type 10 – Dispensary General; Retailer -Licensed to sell/deliver cannabis or cannabis products.

Distribution:

  1. Type 11 – Distributor – Licensed to store, provide cannabis transport, arrange for
    testing, and to conduct quality assurance regarding labeling and packaging prior to delivery to retailer.

Microbusiness:

  1. Type 12 – Microbusiness – Licensed to cultivate (less than 10,000 sq. ft.), distribute/transport, manufacture, and retail on a small scale.

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