The most important news that California’s Medical Marijuana Regulation and Safety Act MMRSA introduced a new regime whereby collectives “may operate for profit, not for profit, or any combination thereof”.
Currently, the state allows the below businesses to operate legally within the state:
Cannabis Grower/Cultivator: this license is for entities that wish to grow medical marijuana plants from seed or clone, to flower and finish. Growers wishing to provide clones, but who do not intend to flower or finish plants, may apply for a specialty nursery license.
To apply to grow cannabis in California, you will need to select a license based on your grow size and lighting source:
Tier 1: Specialty
License 1: Specialty Outdoor. Up to 5,000 sq ft of canopy OR up to 50 mature plants on noncontiguous plots.
License 1A: Specialty Indoor. Up to 5,000 sq ft using exclusively artificial lighting.
License 1B: Specialty Mixed-Light. Up to 5,000 sq ft using a combination of natural and supplemental artificial lighting.
Tier 2: Small
License 2: Small Outdoor. Between 5,001 and 10,000 sq ft of canopy.
License 2A: Small Indoor. Between 5,001 and 10,000 sq ft of canopy using exclusively artificial lighting.
License 2B: Small Mixed-Light. Between 5,001 and 10,000 sq ft of canopy using a combination of natural and supplemental artificial lighting.
Tier 3: These licenses are limited in their access to vertical integration.
License 3: Outdoor. Between 10,001 sq ft to one acre of canopy.
License 3A: Indoor. Between 10,001 sq ft to one acre of canopy using exclusively artificial lighting.
License 3B: Mixed Light. Between 10,001 sq ft to one acre of canopy using a combination of natural and supplemental artificial lighting.
License 4: Nursery.
Cannabis Processor: this license allows business entities to process raw medical marijuana plant matter into a variety of medicinal products.
Processor licenses are sub-divided into two categories based on the types of solvent being used.
License 6: Manufacturer 1. Not using volatile solvents.
Legislators have stated License 6 was not intended for use by edibles manufacturers. This may be subject to cleanup language.
License 7: Manufacturer 2. Using volatile solvents.
Additional license types currently in the law include:
Cannabis Tester: laboratories intending to test medical marijuana products for quality and potency will be required to apply for a tester license
Cannabis Dispensary: businesses that intend to retail medical cannabis to qualifying patients will require a dispensing license
License 10: one retail location
License 10A: up to three retail locations and the potential for full vertical integration
Cannabis Distributer: MMRSA requires that – while business agreements can be made directly between any licensed entities—a third-party distributor be responsible for overseeing and officially conducting any business transaction that occurs. Distributors are required track all products received, and to have them tested for quality.
License 11. All distributers must also apply for a Transporter License (12).
From the legislative perspective, the inclusion of the “distributor” model was a necessary compromise to address the trust deficit with people who do not believe the cannabis industry is effectively and consistently self-regulating.
Cannabis Transporter: business intending to transport medical marijuana from one licensed facility to another.
We create medical and recreational cannabis business plans for different types of cannabis business:
Please do not hesitate to contact us to make an order for a cannabis business plan or a cannabis industry research. We will create complete and professional business plans, including pro forma financials and projections to help you know how much money it’ll cost to start your business and how much money you can make by starting and operating your 100% legally compliant medical and recreational marijuana business.