Emergency Regulations From California’s Three State Licensing Authorities Go Into Effect

On May 18, the Bureau of Cannabis Control (BCC), the Department of Food and Agriculture (CDFA), and the Department of Public Health (CDPH) proposed to readopt their emergency regulations. The proposed regulations included changes and clarifications to address issues raised since the emergency regulations went into effect. Our previous blog post covered the notable changes and clarifications in the proposed regulations.

After a public comment period, additional changes were made to the regulations. They were re-adopted on June 4, and went into effect on June 6. The re-adoption extends the emergency regulations’ effect another 180 days.

The most extensive changes in the regulations made after the public comment period establish procedures for the delivery of cannabis goods. Read those and additional changes below:

The BCC regulations change and clarify the following:

·      License Application Fees: Applicants for an annual license are already required to pay an application fee. The new regulations provide that the licensing fee will be due after the BCC has approved the application. The BCC will not issue the license until the annual licensing fee has been paid. § 5014(b)­

·      Drive Through Exception: An applicant or licensee may only have a premises with a drive-in or drive-through window if they were granted or submitted a license or permit for the premises prior to June 1, 2018 and the application disclosed the drive-in or drive-through window. § 5025

·      Labeling of Cannabis During Transportation: The requirement that distributors keep adult use and medicinal cannabis goods separate in a transport vehicle is removed. § 5311

·      Cannabis Retail Display: The requirement that retailers cannot display cannabis goods in a place visible from outside the premise is removed. § 5405

Delivery Requirements:

·      Most significantly, delivery drivers are allowed to carry up to $10,000 in inventory and take orders after they have left the delivery facility, enabling the "kit" model.  The previous regulations had allowed only the "batch" model of delivering orders filled at the delivery facility.  § 5418

·      During the process of delivery, the delivery employee may not engage in any activities except for the cannabis goods delivery and necessary rest, fuel, or vehicle repair stops. § 5415(d)(g)

·      Prior to providing cannabis goods to a customer, a delivery employee must confirm the age and identity of the customer. § 5415(g)

·      Cannabis goods present in a vehicle during delivery must be locked in a box, container, or cage. § 5417(b)

·      A delivery driver can only perform deliveries for one retailer at a time. § 5418(b)

·      The regulations require delivery drivers to carry a delivery inventory ledger of all cannabis goods provided by the retailer to the delivery driver. For each cannabis good, the ledger must include the type of good, brand, retail value, track and trace identifier, and weight, volume or other measure of the cannabis good. The ledger must be updated after each delivery to reflect the current inventory in possession of the delivery driver. § 5418(d)

·      Delivery drivers must maintain a log that includes all stops from the time the delivery driver leaves the licensed premises to the time the delivery driver returns to the licensed premises, and the reason for any stop. The log must be turned in to the retailer when the delivery driver returns to the licensed premise. § 5418(e)

The CDFA regulations remove the controversial prohibition of light deprivation use in outdoor grows:

·      Light deprivation. The regulations clarify that the use of light deprivation is not enough to convert outdoor cultivation to mixed-light cultivation.  A mixed-light license is only required if artificial light is used. § 8000(s)

The CDPH regulations were unchanged from their original draft in May. The changes and clarifications in the May draft can be found in our last blog post.

Joseph D'Andre