1. What do labs test for? . . .

Cannabinoids, residual solvents and processing chemicals, pesticides, microbiological impurities, mycotoxins, water activity and moisture content, filth and foreign material, and heavy metals. Labs also test for terpenes if a product’s label claims to have them.

2. Which cannabinoids do labs test for? . . .

Tetrahydrocannabinol (THC), Tetrahydrocannabinolic Acid (THCA), Cannabidiol (CBD), Cannabidiolic Acid (CBDA), Cannabigerol (CBG), and Cannabinol (CBN).

Check out our blog post "The 6 Cannabinoids Labs Test For" to read more about this.

3. What 22 residual solvents and processing chemicals do labs test for? . . .

Ethyl acetate
Ethyl ether
Ethylene oxide
Isopropyl alcohol
Methylene chloride
Petroleum ether
Total xylenes (ortho-, meta-, para-)

For their action levels (the maximium parts per million allowed), read our blog post.

4. What 66 residual pesticides do labs test for? . . .

DDVP (Dichlorvos)
Methyl parathion
Piperonyl butoxide

Check out our blog post for their action levels (the maximum parts per million allowed).

5. What microbiological impurities do labs test for and how does a sample pass? . . .

a) All products: Shiga toxin–producing Escherichia coli, Salmonella spp. (Pass if not detected in 1 gram.)

b) Additional tests for inhaled products: Aspergillus species A. fumigatus, A. flavus, A. niger, and A. terreus. (Pass if not detected in 1 gram.)

6. What mycotoxins do labs test for and how does a sample pass? . . .

a) Total of aflatoxin B1, B2, G1, and G2 (pass if under 20 µg/kg)

b) Ochratoxin A (pass if under 20 µg/kg)

7. How do labs test for water activity and moisture content and how does a sample pass? . . .

a) Water activity level: Flowers pass if at or below 0.65 Aw and edibles pass if water activity is at or below 0.85 Aw.

b) Moisture content: Flowers pass if between 5.0% to 13.0%.

8. How do labs test for filth and foreign material and how does a sample pass? . . .

Testing includes hair, insects, feces, packaging contaminants, and manufacturing waste and by-products. Mold or foreign material pass if they’re below an average of 5.0%, by weight and mammalian excreta pass if they’re below an average of 1 per pound.

9. Which heavy metals do labs test for and what are their action levels (pass if they test below the listed μg/g)? . . .

Basic answer here, with a [link to a blog post][4] with the grid layout answer.

10. What are the licensee violation categories and their accompanying penalties? . . .

Minor ($100 - $500):* Not likely to have an adverse effect on public safety or environmental health.

Moderate ($501 - $1000):* Undermines enforcement or is likely to result in public or environmental harm. Also, any repeat of a Minor violation that occurred within 2 years and resulted in a penalty.

Serious ($1,001 - $5,000):* Precludes or significantly interferes with enforcement, causes significant false, misleading or deceptive business practices, or has the potential for significant public or environmental harm. Also, any repeat of a Moderate violation that occurred within 2 years and resulted in a penalty.

11. I am a foreign corporation. Can I still apply for a state and city license? . . .

License applications from foreign corporations are accepted by the State, although individual cities’ rules vary. In addition to the usual incorporation documents, foreign applicants must also include a Certificate of Qualification issued by the Secretary of State.

12. What business-formation documents are required when applying for a license? . . .

All documents filed with the CA Secretary of State, including but not limited to, Articles of Incorporation/Organization, operating agreements, partnership agreements, fictitious business name statements, certificates of stock, certificates of limited partnership, and statements of partnership authority.

13. Do I need a seller’s permit when applying for my license? . . .

Yes, you need a seller’s permit number issued by the CA State Board of Equalization. If you have not yet received it, you must attest that you are currently applying for a seller’s permit.

14. Do I need to get my city license first before applying for the state license? . . .

Generally yes, although this won’t be an option everywhere when state licenses first become available in January 2018. For now, the State just requires documentation from your city that you are in compliance with all local ordinances and regulations, or that you’ll be in compliance with them by the time the Department issues a license.

15. What does my license application’s premises diagram have to include? . . .

Your premises diagram must be drawn-to-scale and un-highlighted, showing the boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, windows, doorways, and common or shared entryways. It must show the areas where there’s commercial cannabis activities, including limited access areas. If your premises consist of only a portion of a property, the diagram must be labeled showing which part of the property is the proposed premises and what the remaining property is used for.

16. For how much money does my surety bond have to be and what is the bond for? . . .

When applying for your state license, you must show proof of a $5,000 surety bond, payable to the State, issued by a corporate surety licensed to do surety business in the state. This bond ensures payment of costs for the destruction of cannabis goods necessitated by any regulation violations you may commit.

17. What is a Waiver of Sovereign Immunity? . . .

If you are a federally recognized tribe or other sovereign entity that may assert sovereign immunity, you must waive that defense in any state administrative or judicial enforcement actions. In the Waiver you agree to:

  1. Provide documentation proving you have lawful authority to enter into the Waiver;
  2. Conduct commercial cannabis activity in full compliance with the state laws and regulations, including submission to enforcement provisions
  3. Allow access to premises on which you conduct commercial cannabis activity, including where records of such activity are kept
  4. Provide records, reports, and other documents of commercial cannabis activity
  5. Conduct commercial cannabis activity with other state commercial cannabis licensees only
  6. Meet all licensure requirements and provide truthful and accurate documentation of your qualifications and suitability for licensure when requested
  7. Submit to the personal and subject matter jurisdiction of the California courts to address any matter related to the Waiver or the commercial cannabis application, license, or activity.

18. How do I get priority review for my application? What is a good standing attestation? . . .

Priority review is given to applicants who were in operation and in good standing with their local jurisdiction on January 1, 2016, and whose business ownership or premises are currently the same as they were on that date. Applicants claiming priority review must submit a good standing attestation (with the name and signature of a person authorized to sign for the local jurisdiction) with a statement to that effect.

19. Can I appeal a license denial? . . .

Upon denial of a license, the Department will notify you of the reasons for your denial and of your right to an appeals hearing. You must file your written appeal within 30 days of receiving the denial. The appeal must address the basis for denial, specify the reasons you meet the license requirements, and may include evidence of rehabilitation. The appeals hearing will be conducted in accordance with Chapter 5 of the California Government Code.

20. What must be included in an inventory control plan? . . .

Your written inventory control plan must track the location and disposition of your cannabis and cannabis products. One person must reconcile the inventory with the records in the track-and-trace system at the close of business each day. The reconciliation must then be independently verified by a second person.

If you find a discrepancy between the inventory and the track-and-trace system, you must conduct an audit. If the audit shows a discrepancy that is not within 5% of the documented inventory, you must notify the Department within 24 hours. If you find any evidence of theft or diversion, immediately report it to the Department.

21. What must be included in a quality control plan? . . .

A quality control plan takes all necessary actions to prevent manufactured cannabis products from being adulterated or misbranded. This ensures that your cannabis products may be consumed by humans and that the packaging materials are safe and suitable.

Your plan must require a batch production record for every batch of manufactured cannabis product. The record should document that the quality control personnel has:

  1. Reviewed the batch production record
  2. Reviewed all required monitoring operations
  3. Reviewed the results of all tests and examinations
  4. Either approved and released--or rejected--the batch for distribution
  5. Either approved and released--or rejected--the finished cannabis product

22. What are the Track-and-Trace Requirements for Manufacturers? . . .

You must enter these events into the track-and-trace database:

  1. Receipt of cannabis products
  2. Transfer or receipt of products for further manufacturing from another manufacturer
  3. Transfer of products to a distributor

You must enter the following information for each event entered:

  1. Name and license number of the transporter who transported the product
  2. Type of product received or transferred
  3. Date of receipt or transfer
  4. Unique identifier assigned to the product
  5. Any other information required by other licensing authorities

23. What are the transportation requirements? . . .

  1. No transport by aircraft, watercraft, drone, rail, human powered vehicles, or unmanned vehicles
  2. Products must be inside a commercial vehicle or trailer and may not be visible or identifiable from the outside
  3. Products must be locked in a box that is secured to the inside of the commercial vehicle or trailer
  4. While left unattended, the commercial vehicle and trailer must be locked and secured
  5. A commercial vehicle containing cannabis goods may not be left unattended or parked overnight in a residential area
  6. At a minimum, the transporting vehicle must have an alarm system
  7. Packages containing goods may not be tampered with during transport
  8. Transport permitted only between licensees shipping or receiving cannabis goods and your own licensed premises
  9. You may not transport non-medical cannabis goods along with medical cannabis goods

24. What are the security plan requirements?? . . .

Your security plan must:

  • a. Prevent access by unauthorized people and protect employees’ physical safety by:
    • i. Establishing physical barriers to secure perimeter and points of entry
    • ii. Setting up a security alarm system to notify and record breach incidents
    • iii. Establishing an identification and sign-in/sign-out procedure for visitors
    • iv. Maintaining the premises so visibility and security monitoring of it is possible
    • v. Establishing procedures for investigating suspicious activities
  • b. Prevent against theft or loss of cannabis and cannabis products, by:
    • i. Establishing an inventory system to track the product and the employees processing it
    • ii. Limiting premise access of employees to those areas necessary to complete job duties, and to those time-frames specifically scheduled for completing them
    • iii. Supervising activities or processes with high potential for diversion
    • iv. Designating areas where personnel may store and access personal items
  • c. Secure and back up electronic records

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