On September 11, 2015, the California Legislature passed a series of bills creating a comprehensive regulatory framework for the Medical Marijuana Industry in California. Amended versions of Senate Bill 643, Assembly Bill 266, and Assembly Bill 243 passed and have been sent to the Governor’s Office for his signature.

The series of bills creates a licensing framework for medical marijuana business in California. The licensing scheme requires that a medical marijuana business obtain both a State and local license prior to operating their business. To obtain a license, the applicant must meet certain requirements and provide certain information, including the following: 

• A certification from the local licensing authority that the applicant is or will be in compliance with all local ordinances and regulations;
• Provide evidence of the legal right to occupy and use a proposed location;
• If the application is for a cultivator or dispensary, evidence that the proposed location is beyond 600 feet of a school;
• Obtain and provide a seller’s permit number; and
• If an applicant is seeking a license to cultivate, distribute, or manufacture medical cannabis, the applicant’s operating procedures for all of the following: (1) Cultivation; (2) Extraction and infusion methods; (3) The transportation process; (4) Inventory procedures; and (5) Quality control procedures.

Further, an application for a license may be denied if the applicant or licensee has been convicted of certain kinds of felonies.

Under the statutory scheme, there are 17 different types of licenses that can be applied for. These licenses include various cultivation licenses, transportation licenses, manufacturing licenses, and distributions licenses. A licensee may hold a state license in up to two separate license categories.

Finally, the bill introduces tracking and testing requirements for medical cannabis, as well as labeling requirements for the distribution of medical cannabis. The labeling requirements include certain warnings that must be prominently displayed on product packaging.

If you have questions regarding these new regulations, or are interested in applying for a new state license, the attorneys at Janssen Malloy LLP can help.