Five Factors to Keep in Mind When Entering the Regulated Market

by David Perkins

It’s a different world growing cannabis in California; in fact it’s a completely different experience than it was even four years ago. It can be overwhelming to begin the process, which is where an experienced cultivation consultant can help. This article will highlight 5 factors to keep in mind before you begin growing in California’s regulated recreational market. 

Start Up – Costs, needs, and endless variables 

So you’ve decided to begin a recreational grow, here are the factors to consider before you get started. 

Permitting, the necessary precursor to cultivation, can be time- consuming, extremely expensive, and overwhelming. General experience dictates that any grow will take longer than planned and cost way more money than you ever expected or anticipated. Always account for more money and time than you think you need. Working with an experienced consultant can help you plan and account for all the costs and variables you may not have considered, prior to beginning cultivation, in order to ensure your success. 

Equipment. When choosing what equipment to use, stick to reputable equipment manufacturers. Don’t just go with the latest high tech gear because you see it on Instagram being advertised by a big, fancy grow operation. Stick to what you know best. Do your homework and research the equipment as much as possible, prior to purchase. Use equipment that has been tested and well documented with success. Some questions to ask yourself: is this necessary? Is it cost efficient? Will it help me reach my goals? 

Grow your business slowly and naturally. Getting too big too quick will most likely expose inefficiencies in your operating plan, which will be further compounded when production increases. Don’t sink before you can swim and start out on a massive scale before you have perfected your process. 

Cultivation – It pays to design it right the first time 

Success begins in the grow room. Never forget that. A properly engineered cultivation plan can be the difference between 3 and 6 harvest per year. Again, it is imperative here to do your homework. A well thought out plan can make or break you, and that is where an experienced cultivation consultant can help. 

Set realistic expectations. Understand that growing boutique-style cannabis is very difficult on a large scale, consistently. Don’t expect to grow perfect cannabis every time – it is unrealistic and can ultimately lead to failure if your financial model depends on it. Growing a plant, while mostly in your control, involves too many variables to rely on a perfect outcome round after round. You can do everything in your power, yet something unexpected can still happen and be detrimental to your yield, and therefore your profit. You must expect and plan for this. 

Automating as much of your grow as possible is always a good idea. This will greatly reduce labor costs and more importantly, minimize human error. In some instances, it will even allow you to review data and information remotely, in real-time, allowing you to ensure your cultivation site is always running as efficiently as possible, even when you aren’t there. 

Processing – Don’t skimp on the process 

If you are going to be harvesting cannabis for flower, it is imperative to have a properly built facility for drying, curing and storing your product. You must consider that this building will need to be large enough to house and properly store all of your harvest at once. This can make or break your crop at harvest time. If you don’t have the capacity to handle your harvest properly, it can lead to disastrous issues such as mold or too quick of a cure – conditions which make your cannabis unsellable in the regulated market. 

Although costly, if done correctly, you can also design this area to serve as your propagation, trimming, and breeding areas, which will ultimately save on costs in the long run. 

Also keep in mind, hand-trimmed cannabis will always look more appealing to the consumer than machine trimmed cannabis. However, hand trimming can be time-consuming, labor-intensive, and therefore far more costly than machine trimming. These are factors you will need to consider and budget for when deciding how to 

proceed. If you use a machine, you may save money upfront, but will you be able to sell your cannabis at full price? 

Distribution – Have a plan 

It is a good idea to have a plan for distribution, prior to startup. If you have an agreement with a retail outlet (or contract with a distributor), in writing, you will protect yourself from financial failure. Cannabis will never grow more valuable over time, therefore, you want to have a plan in place for distribution, as soon as the cannabis is harvested and processed. Just as was the case in the black market days, you never want to hold on to your cannabis for long periods of time. 

Do not distribute without agreements in writing! While some oral agreements may be enforceable, it will be extremely costly to litigate. Therefore, you should plan to hire a lawyer beforehand to create fail-proof agreements that will hold up in court, should a distributor not pay you for your product. 

Sales – Build your brand, but be realistic 

Building your brand is important. And if you don’t produce your own high-quality flower you cannot expect to have a product up to your standards. Your brand will not be successful if you cannot consistently provide consumers with high-quality cannabis. Relying on other growers to produce your cannabis for you is risky to your brand. Even if you are a manufacturer, you may not be able to rely on other suppliers to maintain the quality volume you need in order to manufacture your products consistently. 

The regulated market in California is new. Therefore your must necessarily account for a great degree of price fluctuations in the market. When creating your budget at the outset, you must account for fluctuations in profit. Knowing when prices are going to be at their lowest can help you avoid having an oversupply of inventory. It can also help you avoid such situations by planning your cultivation/harvest accordingly. 

There are both consumer and government influenced market trends that can affect your bottom line. Therefore, these must be accounted for at the outset. 

On the consumer level, you must know what people are buying and how they are consuming. And these factors can change quickly with the introduction of new technology, methods, or new devices intended for cannabis consumption. You must stay on top of these trends. The government regulations can also affect these trends. Products used for cultivation can become banned i.e. products you once relied on in your cultivation can be found to have contaminants known to cause test failures, even in “approved products.” 

Ultimately, all of these factors can make or break your success, and therefore, must be considered, researched, and accounted for prior to beginning your cultivation in the regulated market. Working with a consultant with over 20 years of grow experience, and more importantly, extensive experience in large scale cultivation in the regulated market, can help you achieve the success you desire. Cultivation in the regulated market is costly, but working with a consultant can help you cut costs at the outset, and save you from unexpected expenses in the long run.

David Perkins is a Cultivation manger and consultant with over 20 years of experience in the grow room. From build out to cultivation, cloning to processing, he has done it all. David can help you succeed in the grow room, and likely save you money along the way. If you are considering hiring a consultant, please reach out, and discuss with David the ways in which he can help you achieve your goals. You can reach David at (530)277-5891 or marleybrutusdave@gmail.com 

El Dorado County – Seven Ad Hoc Cannabis Meetings Announced

Seven Ad Hoc Cannabis Meetings Announced

Seven Ad Hoc Cannabis Meetings Announced

Department:
CAO
Date:
3/5/2018
Contact:
Carla Hass
Phone:
(530) 621-4609

(PLACERVILLE, CA) – The following seven meetings of the El Dorado County ad hoc Cannabis Committee meeting are scheduled between today and May 14th.

WHAT: Ad hoc Cannabis Committee meetings

WHEN: All meetings are from 3:00 pm-5:00 pm

  • Monday, March 5th (Outdoor/Cottage)
  • Monday, March 12th (Indoor/Mixed Light/Cottage)
  • Monday, March 19th (Dispensaries/Deliveries/Distribution)
  • Monday, April 23rd (Microbusiness/Nurseries/Testing)
  • Monday, April 30th (Manufacturing)
  • Monday, May 7th (Tax Rates/Funding)
  • Monday, May 14th (Administering a Program/What does it look like?)

WHERE: All meetings will take place at the County Board of Supervisors Chambers 330 Fair Lane Placerville, CA

WHO: Members of the ad hoc Cannabis Committee, Supervisors Michael Ranalli and Sue Novasel
El Dorado County Staff
Members of the public are invited to attend

UPDATE – Successful Cannabis Business DIY Program

Cannabis Regulations

Workshop Overview

 

  1. Regulations Overview and Local Approval (Approx 3 hours)
  2. Temp. License Application Process – Includes information about all required elements of the temporary license application for the BCC, CDFA and/or CDPH (Approx 3 hours)
  3. Annual License Application 1 – Business Plan & Description, Business Formulation Documents, Fictitious Business Name Process (Approx 3 hours)
  4. Annual License Application 2 – Lists of Funds, Lists of Loans, Lists of Investments, Lists of Gifts, List of every individual with financial interest (approx 3 hours)
  5. Annual License Application 3 – List of every owner, Livescans, Evidence of Legal Right To Occupy, Evidence of Premises Compliance, Labor Peace Agreement (Approx 3 hours)
  6. Annual License Application 4 – Seller’s Permit, Proof of Bond, Standard Operating Procedures (Approx 3 hours)
  7. Annual License Application 5 – Cultivation Plan, Water Board Regs, Prohibited chemicals, heavy metals, etc. (Approx 3 hours)
  8. Annual License Application 6 – Track & Trace, Supply Chain, (Approx 3 hours)
  9. Maintaining Your License – Liability Issues, Potential hurdles, What to watch out for, Maintaining your License. (Approx 3 hours)
  10. Having a successful business – Your website, marketing your business, setting yourself apart in the industry, Branding, Trademarking (Approx 3 hours)

 

*** Between Workshops 2 & 3 there will be a week off to complete your TEMPORARY STATE APPLICATION and sit down with us to review before submitting

OR

Bank that 2-hour appointment for when you are ready to do so

AFTER WORKSHOP 10 THERE WILL BE ANOTHER OPPORTUNITY TO HAVE A 2-HOUR APPOINTMENT TO REVIEW YOUR ANNUAL APPLICATION 

OR

BANK THAT APPOINTMENT AS WELL

*** Program subject to change based on changes made by the State regulatory agencies

For more information go to Successful Cannabis Business DIY Program

What Is Really Required To File Your State Cannabis Application

My goal, today, is to dispel some of the fears and myths, around the State cannabis application process, and inform about the process of filing your application for a California State Cannabis Permit. Remember, this post does not pertain, specifically, to the local application as those can, and will, be different for the nearly 500 municipalities across California.

 

Temporary Application Requirements (Only Valid For 120 Days)

Temporary license application (can be filed by hard copy or via www.bcc.ca.gov)

The legal business name of the applicant

The email address of the applicant’s business and the telephone number for the premises

The business’ federal employer identification number

A description of the business organizational structure of the applicant (partnership or corporation)

The temporary license type that is being requested

The license designation requested, A-license or M-license, (all license types other than laboratories)

The contact information for the applicant’s designated primary contact person

owner’s name, title, percentage of ownership, mailing address, telephone number, & email address

The physical address of the premises to be licensed

Evidence that the applicant has the legal right to occupy and use the proposed location (section 5007)

A premises diagram

A copy of a valid license, permit, or other authorization issued by a local jurisdiction

Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I

understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.

 

Cultivation Applications – Department Of Food And Agriculture

Temporary license applications shall be completed and submitted online at calcannabis.cdfa.ca.gov or mailed to the department at P.O. Box 942871, Sacramento, CA 94271.

The license type, pursuant to section 8201

If the applicant has already submitted an application for annual licensure, the application number

The legal business name of the applicant entity

The full legal name, mailing address, phone number, email address, and affiliation of the designated responsible party who shall:

(A) Be an owner with legal authority to bind the applicant entity;

(B) Serve as agent for service of process; and

(C) Serve as primary contact for the application

The physical address of the premises

A copy of a valid license, permit, or other authorization, issued by a local jurisdiction, that enables the applicant entity to conduct commercial cannabis activity at the location requested for the temporary license. For the purposes of this section, “other authorizations” shall include, at a minimum, a written statement or reference that clearly indicates the local jurisdiction intended to grant permission to the applicant entity to conduct commercial cannabis activity at the premises.

 

Annual Application Requirements (Must Be Filed 120 Days After Temp. Application)

Temporary license application (can be filed by hard copy or via www.bcc.ca.gov)

The legal business name of the applicant

The email address of the applicant’s business and the telephone number for the premises

The business’ federal employer identification number

A description of the business organizational structure of the applicant (partnership or corporation)

The temporary license type that is being requested

The license designation requested, A-license or M-license, (all license types other than laboratories)

The contact information for the applicant’s designated primary contact person

owner’s name, title, percentage of ownership, mailing address, telephone number, & email address

The physical address of the premises to be licensed

The mailing address for the applicant, if different from the premises address

The telephone number for the premises

The website address of the applicant’s business

Evidence that the applicant has the legal right to occupy and use the proposed location (section 5007)

A premises diagram

A copy of a valid license, permit, or other authorization issued by a local jurisdiction

Payment of an application fee (section 5014)

Whether the owner is serving or has previously served in the military. (Disclosure is voluntary)

A list of the license types and the license numbers issued from the Bureau and all other state cannabis licensing authorities that the applicant holds, including the date the license was issued and the licensing authority that issued the license.

Whether the applicant has been denied a license or has had a license suspended or revoked by the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of license applied for, the name of the licensing authority that denied the application, and the date of denial.

The business-formation documents, which may include, but are not limited to, articles of incorporation, operating agreements, partnership agreements, and fictitious business name statements. The applicant shall also provide all documents filed with the California Secretary of State, which may include, but are not limited to, articles of incorporation, certificates of stock, articles of organization, certificates of limited partnership, and statements of partnership authority.

A list of every fictitious business name the applicant is operating under including the address where the business is located.

A list of funds belonging to the applicant held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide for each account, the financial

institution’s name, the financial institution’s address, account type, account number, and the

amount of money in the account.

A list of loans made to the applicant. For each loan, the applicant shall provide the amount of the loan, the date of the loan, term(s) of the loan, security provided for the loan, and the name, address, and phone number of the lender.

A list of investments made into the applicant’s commercial cannabis business. For each investment, the applicant shall provide the amount of the investment, the date of the investment, term(s) of the investment, and the name, address, and phone number of the investor.

A list of all gifts of any kind given to the applicant for its use in conducting commercial cannabis activity. For each gift, the applicant shall provide the value of the gift or description of the gift, and the name, address, and phone number of the provider of the gift.

A complete list of every individual that has a financial interest in the commercial cannabis business as defined in 5004 of this division, who is not an owner pursuant to Business and Professions Code section 26001(al).

A complete list of every owner of the applicant as defined in Business and Professions Code section 26001(al). Each individual named on this list shall submit the following information:

(A)

The full name of the owner.

(B)

The owner’s title within the applicant entity.

(C)

The owner’s date of birth and place of birth.

(D)

The owner’s social security number or individual taxpayer identification number.

(E)

The owner’s mailing address.

(F)

The owner’s telephone number. This may include a number for the owner’s home, business,

or mobile telephone.

(G)

The owner’s email address.

(H)

The owner’s current employer.

(I)

The percentage of the ownership interest held in the applicant entity by the owner.

(J)

Whether the owner has an ownership or a financial interest as defined in 5003 and 5004 of this division in any other commercial cannabis business licensed under the Act.

(K)

A copy of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal government that includes the name, date of birth, physical description, and picture of the person, such as a driver license.

(L)

A detailed description of the owner’s convictions. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must

be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300 that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, the owner shall provide the following:

(i)

The date of conviction.

(ii)

Dates of incarceration if applicable.

(iii) Dates of probation if applicable.

(iv)

Dates of parole if applicable.

(v)

A detailed description of the offense for which the owner was convicted.

(vi)

A statement of rehabilitation for each conviction. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Bureau to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, dated letters of reference from employers, instructors, or professional counselors that contain valid contact information for the individual providing the reference.

(M)

If applicable, a detailed description of any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority or local agency against the applicant or a business entity in which the applicant was an owner or officer within the three years immediately preceding the date of the application.

(N)

Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.

Evidence that the applicant has the legal right to occupy and use the proposed location that complies with section 5007 of this division.

Evidence that the proposed premises is in compliance with Business and Professions Code section 26054(b).

For an applicant with 20 or more employees, the applicant shall attest that the applicant has entered into a labor peace agreement and will abide by the terms of the agreement, and the applicant shall provide a copy of the agreement to the Bureau. For applicants who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating the applicant will enter into and abide by the terms of a labor peace agreement.

The applicant shall provide a valid seller’s permit number issued by the California Department of Tax and Fee Administration, if applicable. If the applicant has not yet received a

seller’s permit, the applicant shall attest that the applicant is currently applying for a seller’s

permit.

Proof of a bond (section 5008)

(For testing laboratory applications), the certificate(s) of accreditation as required by section 5702 of this division, or the information required for a provisional license as required by section 5703 of this division.

All licensee applications shall include a detailed description of the applicant’s operating procedures including the following (if applicable):

(A)

The Transportation Procedures

(i)

A description of the applicant’s procedure for transportation of cannabis goods, including whether or not the applicant will be transporting cannabis goods or contracting for transportation services.

(B)

Inventory Procedures

(i)

A description of the applicant’s procedure for receiving shipments of inventory.

(ii)

Where the applicant’s inventory will be stored on the premises and how records of the inventory will be maintained.

(iii) The applicant’s procedure for performing inventory reconciliation and for ensuring that inventory records are accurate.

(C)

Non-Laboratory Quality Control Procedures

(i)

The applicant’s procedures for preventing the deterioration of cannabis goods held by the applicant.

(ii)

The applicant’s procedures for ensuring that cannabis goods are properly packaged and labeled prior to retail sale.

(iii) The applicant’s procedures for ensuring that a licensed testing laboratory samples and analyzes cannabis goods held by the applicant.

(D)

Security Procedures

(i)

The applicant’s procedure for allowing individuals access to the premises.

(ii)

A description of the applicant’s video surveillance system including camera placement and procedures for the maintenance of video surveillance equipment.

Bureau of Cannabis Control Emergency Regulation Text Page 8 of 115

(iii) How the applicant will ensure that all access points to the premises will be secured, including the use of security personnel.

(iv)

A description of the applicant’s security alarm system.

Evidence of exemption from, or compliance with, the California Environmental Quality Act as required by section 5010.

 

Cultivation Applications – Department Of Food And Agriculture

Nonrefundable application fees for the specified annual license type

(a) Specialty Cottage Outdoor $135

(b) Specialty Cottage Indoor $205

(c) Specialty Cottage Mixed-Light Tier 1 $340

(d) Specialty Cottage Mixed-Light Tier 2 $580

(e) Specialty Outdoor $270

(f) Specialty Indoor $2,170

(g) Specialty Mixed-Light Tier 1 $655

(h) Specialty Mixed-Light Tier 2 $1,125

(i) Small Outdoor $535

(j) Small Indoor $3,935

(k) Small Mixed-Light Tier 1 $1,310

(l) Small Mixed-Light Tier 2 $2,250

(m) Medium Outdoor $1,555

(n) Medium Indoor $8,655

(o) Medium Mixed-Light Tier 1 $2,885

(p) Medium Mixed-Light Tier 2 $4,945

(q) Nursery $520

(r) Processor $1,040

§ 8104. Legal Right to Occupy.

(a) If the applicant is the owner of the property on which the premises is located, the applicant shall provide to the department a copy of the title or deed to the property.

(b) If the applicant is not the owner of the property upon which the premises is located, the applicant shall provide the following to the department:

(1) A document from the property owner or property owner’s agent where the commercial cannabis activity will occur that states the applicant has the right to occupy the property and acknowledges that the applicant may use the property for commercial cannabis cultivation;

(2) The property owner’s mailing address and phone number; and

(3) A copy of the lease or rental agreement, or other contractual documentation.

§ 8105. Property Diagram.

A property diagram shall be submitted with each application and shall contain the following:

(a) Boundaries of the property and the proposed premises wherein the license privileges will be exercised with sufficient detail to enable ready determination of the bounds of the premises showing all perimeter dimensions, entrances, and exits to both the property and premises;

(b) If the proposed premises consists of only a portion of a property, the diagram shall be labeled indicating which part of the property is the proposed premises and what the remaining property is used for.

(c) All roads and water crossings on the property;

(d) If the applicant is proposing to use a diversion from a waterbody, groundwater well, or rain catchment system as a water source for cultivation, include the following locations on the property diagram with locations also provided as coordinates in either latitude and longitude or the California Coordinate System:

(1) Sources of water used, including the location of waterbody diversion(s), pump location(s), and distribution system; and

(2) Location, type, and capacity of each storage unit to be used for cultivation.

(e) The assessor’s parcel number(s);

(f) The diagram shall be to scale; and

(g) The diagram shall not contain any highlighting.

§ 8106. Cultivation Plan Requirements.

(a) The cultivation plan for Specialty Cottage, Specialty, Small and Medium licenses shall include all of the following:

(1) A detailed premises diagram showing all boundaries and dimensions in feet of the following proposed areas to scale:

(A) Canopy area(s) (which shall contain mature plants, at any point in time) including aggregate square footage;

(B) Area(s) outside of the canopy where only immature plants shall be maintained, if applicable;

(C) Designated pesticide and other agricultural chemical storage area(s); (D) Designated processing area(s) if the licensee will process on site;

(E) Designated packaging area(s) if the licensee will package products on site;

(F) Designated composting area(s) if the licensee will compost cannabis waste on site;

(G) Designated secured area(s) for cannabis waste if different than subsection (F) above;

(H) Designated area(s) for harvested cannabis storage; and

(2) For indoor and mixed-light license type applications, a lighting diagram with the following information shall be included:

(A) Location of all lights in the canopy area(s); and

(B) Maximum wattage, or wattage equivalent, of each light.

(3) A pest management plan which shall include, but not be limited to, the following:

(A) Product name and active ingredient(s) of all pesticides to be applied to cannabis during any stage of plant growth; and

(B) Integrated pest management protocols including chemical, biological and cultural methods the applicant anticipates using to control or prevent the introduction of pests on the cultivation site.

(4) A cannabis waste management plan meeting the requirements of section 8108 of this Chapter. (b) The cultivation plan for nursery licenses shall include the following information: (1) A detailed premises diagram showing all boundaries and dimensions, in feet, of the following proposed areas:

(A) Area(s) which shall contain only immature plants;

(B) Designated research and development area(s) which may contain mature plants;

(C) Designated seed production area(s) which may contain mature plants; (D) Designated pesticide and other agricultural chemical storage area(s);

(E) Designated composting area(s) if the licensee will compost cannabis waste on site; and

(F) Designated secured area(s) for cannabis waste if different than subsection (E) above.

(2) A pest management plan which shall include, but not be limited to, the following:

(A) Product name and active ingredient(s) of all pesticides to be applied to cannabis during any stage of plant growth; and

(B) Integrated pest management protocols including chemical, biological and cultural methods the applicant anticipates using to control or prevent the introduction of pests on the cultivation site.

(3) A cannabis waste management plan pursuant to section 8108 of this Chapter.

(c) The cultivation plan for processor licenses shall include a detailed premises diagram showing all boundaries and dimensions, in feet, of the following proposed areas:

(1) Designated processing area(s);

(2) Designated packaging area(s), if the licensee will package and label products on site;

(3) Designated composting area(s) if the licensee will compost cannabis waste on site;

(4) Designated secured area(s) for cannabis waste if different than subsection (3) above; and;

(5) Designated area(s) for harvested cannabis storage;

(6) A cannabis waste management plan pursuant to section 8108 of this Chapter.

§ 8107. Supplemental Water Source Information.

The following information shall be provided for each water source identified by the applicant:

(a) Retail water supply sources:

(1) If the water source is a retail supplier, such as a municipal provider, as defined in Section 13575 of Water Code, identify the retail water supplier.

(2) If the water source is a small retail supplier, such as a delivery service, and is subject to subdivisions (a)(1)(B) of Section 26060.1 of Business and Professions Code:

(A) And if the contract is for delivery or pickup of water from a surface water body or an underground stream flowing in a known and definite channel, provide all of the following:

(i) The name of the contract water supplier;

(ii) The geographic location coordinates in either latitude and longitude or the California Coordinate System of any point of diversion used by the contract water supplier to divert water delivered to the applicant under the contract;

(iii) The authorized place of use for any water right used by the contract water supplier to divert water delivered to the applicant under the contract; and

(iv) The maximum amount of water delivered to the applicant for cannabis cultivation in any year.

(B) And if the contract is for delivery or pickup of water from a groundwater well, provide all of the following:

(i) The name of the contract water supplier;

(ii) The geographic location coordinates for any groundwater well used to supply water delivered to the applicant, in either latitude and longitude or the California Coordinate System;

(iii) The maximum amount of water delivered to the applicant for cannabis cultivation in any year; and

(iv) A copy of the well log filed with the Department of Water Resources pursuant to Section 13751 of Water Code for each percolating groundwater well used to divert water delivered to the applicant. If no well log is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department does not have a record of the well log. When no well log is available, the State Water Resources Control Board may request additional information about the well. (b) If the water source is a groundwater well:

(1) The groundwater wells geographic location coordinates in either latitude and longitude or the California Coordinate System; and

(2) A copy of the well log filed with the Department of Water Resources pursuant to Section 13751 of Water Code. If no well log is available, the applicant shall provide evidence from the Department of Water Resources indicating that the Department of Water Resources does not have a record of the well log. If no well log is available, the State Water Resources Control Board may request additional information about the well.

(c) If the water source is a rainwater catchment system:

(1) The total square footage of the catchment footprint area(s);

(2) The total storage capacity, in gallons, of the catchment system(s); and

(3) A detailed description of the type, nature, and location of each catchment surface. Examples of catchment surfaces include a rooftop and greenhouse.

(d) If the water source is a diversion from a waterbody, provide any applicable statement, application, permit, license, or small irrigation use registration identification number(s); and either

(1) A copy of any applicable registrations, permits, or licenses or proof of a pending application, issued under Part 2 (commencing with Section 1200) of Division 2 of the California Water Code as evidence of approval of a water diversion by the State Water Resources Control Board;

(2) A copy of any statements of diversion and use filed with the State Water Resources Control Board before October 31, 2017 detailing the water diversion and use; or

(3) A copy of documentation submitted to the State Water Resources Control Board before October 31, 2017 demonstrating that the diversion is authorized under a riparian right and that no diversion occurred in any calendar year between January 1, 2010 and January 1, 2017.

(4) If the applicant has claimed an exception from the requirement to file a statement of diversion and use, the applicant shall provide a copy of the documentation submitted to the State Water Resources Control Board before January 1, 2019 demonstrating that the diversion is subject to subdivision (a), (c), (d), or (e) of Section 5101 of Water Code. Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26060.1, Business and Professions Code; and Section 13149, Water Code.

§ 8109. Applicant Track and Trace Training Requirement.

(a) Each applicant is responsible for registering for state-mandated training, as prescribed by the department, within ten (10) business days of receiving notice from the department that their application for licensure has been received and is complete.

(b) Documentation of training completion shall be provided to the department within ten (10) business days of completion. Applicants approved for an annual license shall not have access to the track-and-trace system until the licensee’s designated account manager has completed, and provided proof of completion, of the track-and-trace training prescribed by the department. Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26067, Business and Professions Code.

§ 8110. Proof of Local License, Permit, or Other Authorization.

When the applicant provides a license, permit, or other authorization from the local jurisdiction where the licensed premises will be or is located, the department will notify the contact person identified pursuant to Section 26055 of Business and Professions Code. If the local jurisdiction does not respond to the department’s notification within ten (10) calendar days, the department may issue a license to the applicant. Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26050.1 and 26055, Business and Professions Code.

California Cannabis Industry

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