January 1, 2018 is fast approaching and commercial cannabis businesses of all stripes will have to be compliant with the new rules and guidelines specific to their industry. For manufacturers, companies and businesses that make things like oils, waxes, edibles, et cetera, they will have to be compliant with the California Department of Public Health’s new regulations. Let’s take a look at what the regulations will be and what that means for your manufacturing business.
There are specific license categories for adult-use (A-License) and medicinal (M-License) which is similar to how the Cannabis Control Bureau is handling things. A business may hold separate A and M-licenses if they’ve applied for both separately. However!, CDPH has also established four license types depending on what type of manufacturing and rendering your business in. The four license types are:
- Type 7 Extraction using volatile solvents (ex: butane, hexane, pentane)
- Type 6 Extraction using a non-volatile solvent or mechanical method (ex: food-grade butter, oil, water, ethanol, or carbon dioxide)
- Type N Infusions (ex: using pre-extracted oils to create edibles, beverages, capsules, vape cartridges, tinctures or topicals)
- Type P Packaging and labeling only
Application fees for all licenses are $1,000.00. The fee for a license itself, separate from the application fee, is a scaling amount set by the gross annual revenue of the licensed premises. The license fee will range from $2,000-$75,000.
For all licensees the procedures for inventory control, quality control, transportation, security and cannabis waste disposal must be submitted in writing at the same time that the license is applied for.
There’s a lot more information outlined by the state’s website and it is well worth the time of anyone in manufacturing to get familiar with this document. Of course, if you have any questions on any commercial cannabis business matters you should get in touch with our team of experts.