Proposed regs for CA cultivation

Discussion in 'Legal Edge' started by ruwtz, Sep 13, 2017.


    ruwtz Well-Known Member

    If there's an ongoing conversation here about this I didn't find it, and so i'm starting one.

    Please contribute if you're staying close to developments, and everyone else is invited to read up and jump in.

    Follow this link to view DFA proposed regs

    Everything kicks in Jan 1st, 2018 and I expect these regs are exactly how it will be. Which is nothing short of an admin nightmare for anyone wanting to make some money and remain compliant in California.

    Here's my summary:

    1. scalable licenses available with applicable scalable license fee (i.e. "speciality cottage indoor" license of up to 500sqft of total canopy will cost $900 annually)
    2. scalable application fees (the above is $100)
    3. requires local business license and valid sellers permit from BoE prior to application
    4. requires corporately-issued surety bond for $5,000 for cost of destroying any non-compliant product
    5. evidence of permit issued by Regional Water Quality Control board
    6. certification of compliance with zoning, building code, noise ordinances and land use
    7. evidence of conformance with public resources code and Environmental Quality Act
    8. propose in-depth "cultivation plan", comprising premises diagram showing propagation areas, canopy areas, processing areas, designated refuse area, water source and storage location, lighting diagram and pest management plan
    9. evidence of notifying local fire dept of said cultivation plan
    Licensee must report ALL plants in Track & Trace database, where all plants are given unique identifier (UID). UID shall accompany plant throughout cycle, and each harvest shall receive a new UID associated with all UIDs for contributing plants.

    Harvested product may be transferred only to another licensed entity (manufacturer, transporter, dispensary etc), and all transfers must be reported via Track & Trace including weight, departure time and estimated arrival time.

    This is what I got from it.

    Seems pretty straightforward, huh?!

    Last edited: Sep 13, 2017

    Icemud420 Well-Known Member

    There is a lot more to it, in the details but that is a good list so far...

    • The first thing though, is finding a city that will even allow cultivation. There are only about maybe 5-10% cities in California out of about 490 or so that even allow it.
    • Once you find a city that permits it, then you have to find available real estate or land in the "zone" that the city allocated for cannabis use. (very little to choose from).
    • Because there are 10s of thousands of growers looking for the same thing, real estate prices have skyrocked so expect to dump a million or more just on a small piece of property or existing building.
    • Then comes the conditional use permit from the city...
    • Then you can move to #1 on your list...
    • Then all the costs associated with building codes and bringing your facility to code... (they aren't cheap)
    • And inspections (also costs).
    • And Permit fees (also costs)
    • Due to the huge amounts of electricity cultivation uses, most existing buildings will not be able to handle the load, and in some cases the city infrastructure can not handle it either...(check before you do anything)
    • And track and trace software which will cost quite a bit. The one I use costs about 100k a year to license and use.
    • And security systems and guards which is another huge expense...
    • and the list for expenses goes on and on and on...
    • And then comes the pesticide and testing regulations...each batch has to be tested for a list of contaminents... and the list of what is allowed for pests is very minimal at best. about 90% or more of the current industry is failing testing (which is why you never see dispensaries posting heavy metals, pesticide or microbial test results) because they all are contaminated..
    • Not only that, but as a licensed operator, you ONLY are allowed to deal with other licensed operators.... so what dispensaries are actually legit... ??? not as many as you think. For instance right now in Los Angeles city limits.. .there are NO licensed or approved dispensaries at this time... although there probably are 1000 in operation today... none are licenced by the new standards. Pre ICO doesn't count, Reg D doesn't count... .so where are you going to sell your end product?

    I don't believe that as a licensed cultivator you need to use a distributor anymore though, I believe that has changed where you have to be your own delivery person or an employee has to.

    All of that is just another chunk of what is required to be "legal" in California after 2018....

    Another thing that really sucks about the new laws, is that we are all allowed to grow our 6 personal plants... but most cities say you can not do this outside, and it has to be indoors... but even more infuriating is that some cities are requiring those that want to grow their "legal 6 plants" to purchase a city permit for a couple hundred dollars every year, which then also slaps on a requirement that you have to allow city inspectors to come and inspect your grow, at your private residence... !!!! Overreach at its finest!
    Last edited: Oct 13, 2017
    ruwtz likes this.
    greg nr

    greg nr Well-Known Member


    Zero_OS Well-Known Member

    Temp permits for the first year - no application fees, then once permanent regs are in place, $1000 app fee plus a license fee scaled to revenues on approval of license. State license approval requires local permits be issued first, and most local jurisd aren't ready to issue. Cultivation tax = $9.75/ dry oz bud, $2.75/dry oz leaf. Plus 15% excise tax at purchase by end user. Local taxes tbd but will probably be higher than a mofo.

    Personal grow outside is ok if not visible from a public place. Local regs yet to be developed.

    Long story short, come 1/2/18, no rec dispensaries open and no cult. licenses issued. Its going to take a while for legal high-cost weed to be available to the rec user.

    So much for the lofty goal of putting a damper on the black market...
    ruwtz likes this.

    Icemud420 Well-Known Member


    Zero_OS Well-Known Member

    especially for the cultivator if the testing finds something above the threshold (mold, mildew, pesticides, etc)...the whole batch from where the representative sample was drawn will have to be destroyed. Licensed cultivators better have their shit together.
    Icemud420 likes this.

    Icemud420 Well-Known Member

    And testing labs would confirm that about 90% of the flower and concentrates currently in the market won't pass the new regulations.... finding clean cannabis is going to be a issue for legal retail outlets.
    a mongo frog

    a mongo frog Well-Known Member

    Its 200 bucks for the average joe. Probably cheaper for for the big boy players coming. Super cheap I think. And well worth the cost.

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