Marijuana Business Magazine

118 • Marijuana Business Magazine • November / December 2017 to go into recreational but operate two separate stores.Why turn down the cost savings associated with co-locating stores? Branding. Van Roo says he plans to have his medical and recreational stores at different locations because the medi- cal brand is already so well established, and he wants to develop a new brand for the rec business. “We want our medical store to retain a medical, clinical feel versus an adult-use environment, which is a much C alifornia D reamin' PRIMER: CALIFORNIA SENATE BILL 94 S B-94, whichwas signed into law in 2017, lays out a unified regulatory framework that will govern California’s new medical and recreational mari- juana markets. Below are highlights: Licensing Tracks: Operators will be allowed to have both medical and rec- reational businesses but must apply for a separate license for each. Medi- cal operators will apply for so-called M-licenses and recreational operators will apply for A-licenses. License Types: Specialty cottage cultivation licenses, micro-business licenses and large outdoor, indoor and mixed-light cultivation licenses will be available for both medical and recrea- tional marijuana businesses. Licensing Priority: Applicants who have been operating in compliance with the Compassionate Use Act of 1996 before Sept. 1, 2016, will receive priority in the state licensing process. Co-Location: The same facility can be licensed for medical and adult use. City and County Approval: Medi- cal and recreational businesses will still need approval from local city or county governments before they can apply for a state license. Regional Licensing Limitations: When awarding business licenses, state regulators must consider excessive concentration of permits in a given geographic area. This applies to both medical and recreational marijuana. Residency: There is no state residency requirement, but local governments may require residency to get a license. This applies to both medical and rec- reational cannabis. Administration: The primary govern- ment agency regulating the program will be the Bureau of Cannabis Control. Infused Products: Infused products can contain no more than 10 milli- grams of THC per serving. This applies to both medical and recreational prod- ucts. The lawdoes not stipulate a limit of milligrams per package, however. The Bureau of Cannabis Control may address this through new regulations. The Manufacturing Process: Concen- trate manufacturers can use “vola- tile solvents” only if they have special licenses issued by local authorities. “Volatile solvents” are defined as those that produce flammable gas or vapor and that can cause explo- sions. This goes for both medical and recreational products. Delivery: Stand-alone delivery ser- vices and delivery by brick-and-mortar stores are permitted. This applies to both medical and recreational. Water Use: Cultivators must identify the source of their water supply. This applies to both medical and recrea- tional cultivators. Vertical Integration: Vertical integra- tion will be allowed except for those cultivating more than an acre out- doors or more than 22,000 square feet of plant canopy under mixed- lighting or indoors. Appellations: The Department of Food and Agriculture must begin establish- ing standards for growers to designate counties of origin for their product by Jan. 1. The agency must also create a process bywhich licensed cultivators can “establish appellations of stan- dards, practices, and varietals appli- cable to cannabis grown in a certain geographical area in California” by no later than Jan. 1, 2021. – Omar Sacirbey different scenario,” Van Roo said. “One’s more tailored to creating a pathway for medical solutions, while the other is adult use.” Know you’ll be targeting two differ- ent demographics if you enter both the medical and adult-use markets. Van Roo said most of his medi- cal patients are 50 and older and very distinct from the rec customers he wants to woo to his recreational store. “The adult-use shop will be an Robert Van Roo