Meeting Agenda 11/30/2017
LAST MEETING RECAP
– Locals express more concerns about their future in the cannabis industry.
Main concerns are for the small business who cannot compete with many of the requirements, costs and slow process of evolving cannabis regulatory practices. There are many unknowns for how the state will be able to process all these applications in January and what will happen in January, 2018.
– Microbusiness Licenses good for Humboldt? First introduced as part of Proposition 64 in relation to adult-use operations, the microbusiness license is going to be available to medical marijuana businesses, partly due to SB 94. The license allows small businesses to vertically integrate as owners could grow cannabis in an area of less than 10,000 square feet, distribute, manufacture non-volatile products and become a retailer.
– Humboldt County Commercial cannabis updates. Humboldt County is not taking applications for cannabis permits until the new county ordinance is issued and is yet to be released.
– Bureau of Cannabis Control California’s three cannabis licensing authorities have announced the official withdrawal of the draft medical cannabis regulations that were proposed in late spring. The three cannabis licensing authorities will develop emergency regulations based new laws that passed this year, and will incorporate the robust and valuable public comment received on the proposed medical cannabis regulations.
Bureau of Cannabis Control (MCRSA)
Bureau of Cannabis Control (Laboratories)
CA Department of Food and Ag (Cultivation)
CA Department of Public Health (Manufacturing)
– State licensing authorities will use the emergency rulemaking process for the new regulations. The emergency regulations are expected to be published in November. The implementation date for the issuance of commercial cannabis licenses remains the same: January 1, 2018.
– Visit the state’s Cannabis Web Portal for additional information about the three licensing authorities, or to learn about updates as they become available.
– The State Water Resources Control Board has issued deadlines specific to cultivators that wish to submit their CalCannabis cultivation license application before January 1, 2019. If water is already being diverted under a riparian water right claim, an Initial Statement of Diversion and Use must be on file with the Division of Water Rights on or before October 31, 2017. Forms are available at the SWRCB.
– The California Department of Tax and Fee Administration has issued notice of New Cannabis Taxes Begin January 1, 2018: “If you sell cannabis or cannabis products, you must register with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit. Cannabis cultivators, processors, manufacturers, retailers, microbusinesses, and distributors making sales are required to obtain and maintain a seller’s permit as a prerequisite for applying for a license with the California Department of Food and Agriculture, the California Department of Consumer Affairs, or the California Department of Public Health. Distributors of cannabis and cannabis products must also register with the CDTFA for a cannabis tax permit to report and pay the two new cannabis taxes to the CDTFA. The cannabis tax permit is in addition to your seller’s permit.”
– Governor Brown Vetoes Bills Banning Smoking and Vaping at the Beach.
– Study: Marijuana Dispensaries Associated With Declining Rates Of Painkiller Abuse.
– Study: Medical Cannabis Enrollees Reduce Their Prescription Drug Use.
– Cannabis Retail Facilities Associated With Rising Home Values.
– Humboldt NORML sponsored Humboldt County Cup and panel discussion with Dale Gieringer and Humboldt NORML board of director’s report of events.
– California Department of Public Health visits Humboldt County with Education, Training & Outreach Manager. The CDPH provided an informational workshop for Manufactured Cannabis Training for understanding regulations and state licensing.
– Emergency Regulations were released by each state licensing authority and outline specific aspects of the commercial cannabis market.
– Permanent Regulations in rule making process and anticipated for early 2018
– CDPH manufactured cannabis training key points of interest
1) State Laws & Regulations
-History of Laws (1996 Compassionate Use Act/ Prop. 215, 2015 Medical Cannabis Regulation & Safety Act (MCRSA), 2016 Adult Use of Marijuana Act (AUMA)/ Prop. 64, 2017 Medicinal and Adult-Use Cannabis Regulation Safety Act (MAUCRSA)/ SB 94.
-Principles of MAUCRSA are Public Health & Consumer Safety, Neither Food Nor Drug, Vertical Integration and Dual Licensing Structure (Adult and Medicinal).
-Dual Licensing Structure must comply with local cannabis ordinances/ permitting and must be state licensed starting Jan. 2018
2) State Cannabis Licensing Authorities
-Bureau of Cannabis Control (Retailers, Distributors, Testing Labs, Micro Business)
-CA Dept. of Public Health (Manufacturers) role is to protect public health by promoting product and workplace safety.
-CA Dept. of Food & Agriculture (Cal Cannabis Cultivation Licensing, Track and Trace by METRC)
3) Regulations for Cannabis Manufacturing
-For Extraction, Infusion, Packaging and Labeling.
-Packaging can have secondary child resistant packaging and must have government warning statements.
-License Categories M (Medicinal) or A (Adult-use)
-License Types are Type 7- Volatile, Type 6- Non-Volatile, Type N- Infusions, Type P- Packaging and Labeling.
-New License Type S- Shared Manufacturing facility.
-Operational requirements for good manufacturing process that is clean, sanitary work environment and hazard control.
-Cannabis product safety free of contaminants and uniform THC levels
-Chemical extraction safety must adhere to local fire code and restrictions.
-Cannabis product standards and restrictions for prohibited additives, products, ingredients and shapes. Edible per serving guidelines of 10mg and 100mg/ package.
-Other points of interest found on MCSB website.
4) Temporary License Application Process
-One page form will be available on MCSB website and can submit via email with proof of local authorization.
-Valid for 120 days and may extend 90 days.
-Do business only with other licensees.
5) Annual License Application Process
-Requires CA business license, CA sellers permit, Federal Employer ID Number and compliance with local jurisdiction.
-Detailed ownership and criminal history.
6) After your licensed
-Adult and Medical Use will have overlap transition period from Jan. 1 to July 1, 2018 and then will be separate to avoid low inventory of adult-use market.
-Adult use and medical products “must stay in their own lane”.
-Humboldt NORML voiced concerned for small home based business to be able to conduct certain types of commercial cannabis activity if it does not pose a risk for health and safety.
– Respect State Marijuana Laws Act- Representative Dana Rohrabacher (R-CA), along with six other Republicans and six Democrats, has reintroduced bipartisan legislation, ‘The Respect State Marijuana Laws Act,’ to prevent the federal government from criminally prosecuting individuals and/or businesses who are engaging in state-sanctioned activities specific to the possession, use, production, and distribution of marijuana. Passage of this Act would halt federal officials from prosecuting individuals and businesses for violating the Controlled Substances Act in the 29 states that permit either the medical or adult use and distribution of marijuana.
– H.R. 1820 has been reintroduced by Representative Earl Blumenauer, along with five co-sponsors, has reintroduced H.R. 1820, the Veterans Equal Access Act, which expands medical cannabis access to eligible military veterans. Our veterans deserve the option to legally access a botanical product that is objectively safer than the litany of pharmaceutical drugs it could replace. Veterans are increasingly turning to medical cannabis as an effective alternative to opioids and other conventional medications. Unfortunately V.A. doctors are forbidden from providing the paperwork necessary to complete a recommendation, thus forcing military veterans to seek the advice of a private, out-of-network physician.
– Study: Marijuana Use Associated With Decreased In-Hospital Mortality In Heart Failure Patients.
– Study: Medical Cannabis Registrants More Likely To Cease Using Opioids Compared To Non-Participants.
NEW DISCUSSION TOPICS
– Public Comment