Market – California 2017-11-30T14:54:48+00:00

CALIFORNIA SEED TO SALE TRACEABILITY

KNOWLEDGE CENTER

Created to provide helpful information about the California Cannabis Industry.

CANNABIS LICENSE INFO

Information will be updated here as it becomes available. Check back for updates!

UPDATE: 11/29/2017 – The California Bureau of Cannabis Control has officially released emergency regulations that outline how the state’s entire cannabis program, both medicinal and adult-use, will be required to operate as of January 1, 2018.  Full details including licensing types and track and trace requirements can all be found below.

UPDATE: 9/25/2017 – The California Bureau of Cannabis Control released official requirements for temporary licenses to allow businesses to begin sales and operations starting on January 1, 2018, without facing delays that would stem from a large influx of license applications. Info can be found below.

UPDATE: 6/21/2017 – The period for the public to submit feedback regarding the draft rules and regs has concluded.  The state is no longer accepting feedback via either in person or written.

UPDATE: 5/11/2017 – The state is accepting feedback submissions from all stakeholders via written or in-person comments.

UPDATE: 5/8/2017 – Standardized cannabis testing procedures and licensing info were proposed on Friday, May 6, 2017.  Check out the Laboratories tab below for information regarding feedback submission on the proposed rules.  Interested parties have until June 20, 2017 to submit feedback via written comments.  The lab testing rules and regulations are developed by the Bureau of Marijuana Control.

UPDATE: 5/1/2017 – Licensing information added for California’s dispensary, cultivation, transportation, distribution, and processing programs.

Temporary Licensing Info

A temporary license is a conditional license that allows a business to engage in commercial cannabis activity for a period of 120 days.  The Bureau can only issue a temporary license if the applicant has a valid license, permit, or other authorization issued by the local jurisdiction in which the business intends to operate.

  • The Bureau intends to start issuing temporary licenses January 1, 2018 and expects to begin accepting applications prior to that date.
  • Temporary licenses will be effective starting January 1, 2018, no sooner.

All applicants will be required to provide the following info to receive a temporary license:

  • Local jurisdiction authorization: A copy of a valid license, permit, or other authorization issued by the local jurisdiction where the business is operating that allows the applicant to conduct commercial cannabis activity at the location.
    • Local authorization may vary by local jurisdiction and must specify that the applicant is approved for commercial cannabis activity.
  • Name: The name of the applicant requesting the license.  This could be an individual or business entity.
  • License type requested: Distributor, Retailer, Microbusiness, or Testing Laboratory.
  • License designation requested: A-License, adult-use or M-License, medicinal.
  • Contact Information: Designated primary contact including first and last name, title, address, phone number(s), and email address(es).
  • Owners: For each owner that meets the criteria of Business and Professions Code section 26001 (al), the owner’s name, mailing address, and email address.
  • Physical Address: Location of the proposed premises.
  • Authorization to use location: A copy of the title or deed to the land where the premises is proposed to be located.  If the applicant does not own the land, a document from the landowner stating that the applicant has the right to occupy the property and may use the property for the commercial cannabis activity.
  • Premises Diagram: A diagram of the business’s layout at the proposed location.

For more information, please visit the Bureau of Cannabis Control website.


General Licensing Info (Applies to ALL License Types)

In order to receive a license from the state, businesses must first be in compliance with their local law.  Upon receiving an application for licensure, the state will reach out to your local municipality in which you’re operating, where they will have 60 days to report back to the state on whether or not your business is currently in compliance with local rules and regulations.  If you are not in compliance with local law, your application will automatically be rejected.

  • All licensees are required to document their standard operating procedures and may be asked to present this information upon surprise inspection.  Applicants are required to provide detailed operating procedures for any of the following cannabis activities:
    • Cultivation
    • Extraction and infusion methods
    • The transportation process
    • Inventory procedures
    • Quality control procedures
    • Security protocols
    • If seeking a cultivation license, applicant’s must document and define sources of water
    • Complete, detailed diagram of the proposed premises
    • A complete list of every individual with financial interest in the person applying for a license
  • Individuals are not allowed to have any interest in multiple licenses, licensees, or “person with financial interest”.
  • Grounds for Disciplinary Action include, but are not limited to, the following:
    • Failure to comply with the provisions of this division or any rule or regulation adopted pursuant to this division.
    • Conduct that constitutes grounds for denial of licensure or discipline of a license
    • Any other grounds contained in regulations adopted by a licensing authority pursuant to this division.
    • Failure to comply with any state law including, but not limited to, the payment of taxes as required under the Revenue and Taxation Code, except as provided for in this division or other California law.
    • Knowing violations of any state or local law, ordinance, or regulation conferring worker protections or legal rights on the employees of a licensee.
    • Failure to comply with the requirement of a local ordinance regulating commercial cannabis activity.
    • The intentional and knowing sale of cannabis or cannabis products by an A-licensee to a person under 21 years of age.
    • The intentional and knowing sale of medicinal cannabis or medicinal cannabis products by an M-licensee to a person without a physician’s recommendation.
    • Failure to maintain safe conditions for inspection by a licensing authority.
    • Failure to comply with any operating procedure submitted to the licensing authority
    • Failure to comply with license conditions established
  • Individuals holding a state testing laboratory license are prohibited from licensure for any other activity.
  • Licensed premises may not be within 600ft. of a school.
  • Applicants may not have any felony convictions involving violence, fraud, deceit, embezzlement, employee-activity related, and more.
  • Inability to follow any of these requirements can mean forfeiture of your license or denial at the 12 month renewal period.
Dispensaries sell legal cannabis, and cannabis products, to responsible adults in compliance with local regulations.  In California, Dispensaries are licensed by the Bureau of Medical Cannabis Regulation.

General Dispensary Licensing Info:

  • Licensed dispensaries will be able to operate between the hours of 6am and 9pm local pacific time.
  • Licensees shall not sell more than eight (8) ounces of medical cannabis in a single day to a single medical cannabis patient.
  • Dispensaries are allowed to accept returned medical cannabis products, however, they may not be resold and must be properly destroyed and recorded.
  • Free samples are not permitted, regardless of any circumstances.
  • Exit packaging will be required for each purchase/customer.
  • Dispensaries may hire delivery employees to perform in-person deliveries of medical cannabis to registered medical patients.
    • May only deliver medical cannabis to physical California addresses.

California Dispensary Licenses:

There will be an estimated 20,000 Dispensary Licenses in California.
  • Dispensary; General
    • Up to $500,000
      • Application Fee: $1,000
      • Annual Fee: $4,000
    • $500,00 to -$1.5 million
      • Application Fee: $1,000
      • Annual Fee: $12,000
    • $1.5 million to $4.5 million
      • Application Fee: $1,000
      • Annual Fee: $36,000
    • Greater than $4,5 million
      • Application Fee: $1,000
      • Annual Fee: $72,000
  •  Distribution
    • Up to $2 million
      • Application Fee: $1,000
      • Annual Fee: $1,200
    • $2 million to $8 million
      • Application Fee: $1,000
      • Annual Fee: $5,000
    • $8 million to $80 million
      • Application Fee: $1,000
      • Annual Fee: $36,000
    • Greater than $80 million
      • Application Fee: $1,000
      • Annual Fee: $125,000
  • Distribution Transport Only
    • Up to $2 million
      • Application Fee: $1,000
      • Annual Fee: $800
    • $2 million to $8 million
      • Application Fee: $1,000
      • Annual Fee: $2,500
  • Micro-Business
    • Up to $500,000
      • Application Fee: $1,000
      • Annual Fee: $5,000
    • $500,000-$1.5 million
      • Application Fee: $1,000
      • Annual Fee: $15,000
    • $1.5 million to $4.5 million
      • Application Fee: $1,000
      • Annual Fee: $42,000
    • Greater than $4.5 million
      • Application Fee: $1,000
      • Annual Fee: $120,000

Distribution Licenses

A distributor may take title to and possession of medical cannabis after harvest but prior to manufacturing.  A distributor may sell the medical cannabis to a manufacturer or enter into a contract with a manufacturer for manufacturing the medical cannabis into medical cannabis products.

Distributors are responsible for transporting cannabis to a licensed testing laboratory and make arrangements for testing and pickup for final delivery to a licensed cannabis dispensary.

Transporter Licenses

A transporter, who is licensed by the bureau of medical cannabis regulation, may transport medical cannabis goods between licensees.

What kind of point-of-sale do I need to operate a Dispensary?

California will require dispensaries, distributors, and transporters, to track and trace all of their cannabis-related products for regulatory and compliance reporting requirements. Our Dispensary Point of Sale and inventory management system provides comprehensive seed-to-sale cannabis tracking with a focus on compliant data points.  We are 100% compliant in California; let us sweat the details so you can run your business.  If your state requires seed-to-sale systems to stay compliant, BioTrackTHC has you covered.  Our system is customized to meet the unique regulatory frameworks in each and every state.

For full rules and regulations on California’s medical cannabis dispensing, distribution and transportation program, click here.

Grower (also commonly referred to as Producers or Cultivators) – Cultivators are responsible for growing cannabis. In California, Cultivation licenses are distributed by the California Department of Food and Agriculture (CDFA), collectively referred to as CalCannabis Licensing branch.

General License Requirements – Cultivation

  • Cultivation licenses shall be valid for 12 months (1 year) from the date of issuance and shall be renewed annually.
  • Every person shall obtain a separate license for each premises where it engages in commercial cannabis cultivation.
  • Cultivation licenses are not transferable or assignable to any other person, entity, or property.
  • Licensees are prohibited from selling, bartering or donating any commercially cultivated cannabis from their licensed premises directly to an unlicensed premises or individual.
  • All licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal cannabis activity by prominently affixing an “A” or “M,” respectively. Examples of such a designation include, but are not limited to, “A-Type 1” or “M-Type 1.”
  • Cultivators may not use any pesticide that has been banned for use in the state.
  • The California Department of Pesticide Regulation will address any requirements surrounding use of pesticides with cannabis cultivation.

How many Medical Marijuana licenses are being awarded in California?

California Cultivation Licenses

Here is a list of all California cannabis cultivation license types, their definition and their annual licensing/renewal fees.

  • Type 1C – Specialty Cottage Outdoor – An outdoor cultivation site with up to 25 mature plants.
    • Application Fee: $135
    • Annual Fee:$1,205
  • Type 1D – Specialty Cottage Indoor – An indoor cultivation site with 500 sq. ft. or less of total canopy.
    • Application Fee: $205
    • Annual Fee:$1,830
  • Type A3 – Speciality Cottage Mixed Light 1- A mixed-light cultivation site with 2,500 sq. ft. or less of total canopy
    • Application Fee: $340
    • Annual Fee:$3,305
  • Speciality Cottage Mixed Light 2- A mixed-light cultivation site with 2,500 sq. ft. or less of total canopy
    • Application Fee: $580
    • Annual Fee:$5,200
  • Type 1 – Cultivation; Specialty Outdoor; Small – An outdoor cultivation site with less than or equal to 5,000 sq. ft. of total canopy, or up to 50 mature plants and noncontiguous plots.
    • Application Fee: $270
    • Annual Fee:$2,410
  • Type 1A – Cultivation; Specialty Indoor; Small- An indoor cultivation site between 501 and 5,000 sq. ft. of total canopy.
    • Application Fee: $2,170
    • Annual Fee:$19,540
  • Type 1B – Cultivation; Specialty mixed-light 1; Small – A mixed-light cultivation site between 2,501 and 5,000 sq. ft. of total canopy.
    • Application Fee: $135
    • Annual Fee:$1,205
  • Specialty mixed-light 2;- A mixed-light cultivation site between 2,501 and 5,000 sq. ft. of total canopy.
    • Application Fee: $1,125
    • Annual Fee:$10,1205
  • Type 2 – Cultivation; Outdoor; Small – An outdoor cultivation site between 5,001 and 10,000 sq. ft. of total canopy.
    • Application Fee: $535
    • Annual Fee:$4,820
  • Type 2A – Cultivation; Indoor; Small – An indoor cultivation site between 5,001 and 10,000 sq. ft. of total canopy.
    • Application Fee: $3,935
    • Annual Fee:$35,410
  • Type 2B – Cultivation; Mixed-light 1; Small  – A mixed-light cultivation site between 2,501 and 5,000 sq. ft. of total canopy.
    • Application Fee: $1,310
    • Annual Fee:$11,800
  • Type 2C – Cultivation; Mixed-light 2; Small  – A mixed-light cultivation site between 2,501 and 5,000 sq. ft. of total canopy.
    • Application Fee: $2,250
    • Annual Fee: $20,235
  • Type 3 – Cultivation; Outdoor; Medium – An outdoor cultivation site between 10,001 sq. ft. and one acre of total canopy.
    • Application Fee: $1,555
    • Annual Fee:$13,990
  • Type 3A – Cultivation; Indoor; Medium – An indoor cultivation site between 10,001 and 22,000 sq. ft. of total canopy.
    • Application Fee: $8,655
    • Annual Fee:$77,905
  • Type 3B – Cultivation; Mixed-light tier 1; Medium- A mixed-light cultivation site between 10,001 and 22,000 sq. ft. of total canopy.
    • Application Fee: $2,885
    • Annual Fee:$25,970
  • Type 3C – Cultivation; Mixed-light tier 2; Medium- A mixed-light cultivation site between 10,001 and 22,000 sq. ft. of total canopy.
    • Application Fee: $4,945
    • Annual Fee:$44,517
  • Type 4 – Cultivation; Nursery – Cultivation of cannabis solely as a nursery.
    • Application Fee: $520
    • Annual Fee:$4,685
  • Type 5 – Cultivation; Outdoor; Large
  • Type 5A – Cultivation; Indoor; Large
  • Type 5B – Cultivation; Mixed-light; Large
    • Type 5 license types will not be issued before January 1, 2023

What kind of track and trace system do I need to operate a Cultivation Facility?

California requires an extensive seed-to-sale cannabis tracking system to monitor cultivation efforts and inventory.  Our cultivation seed-to-sale-tracking solution provides comprehensive data tracking with an emphasis on compliance.  We are 100% compliant in California; let us sweat the details so you can run your business.  Customized to meet the unique regulatory frameworks in each state, BioTrackTHC also features an all-in-one business tool to help you operate every aspect of the cultivation business by itself, or as part of the vertically-integrated cannabis business.

For full rules and regulations on California’s medical cannabis cultivation program, click here.

Processors – Processors take harvested cannabis from Cultivators and create derivative extracts for edibles, concentrates, topicals, and prepacks. Finished products are transported to Dispensaries.  In California, Processors are referred to as Manufacturers and are licensed by the Office of Manufactured Cannabis safety.  The state’s Department of Public Health is responsible for issuing the rules and regulations in regards to cannabis manufacturing.

General cannabis manufacturing license info:

Operators must obtain a license for each separate premises at which medical cannabis products will be manufactured.

California Cannabis Manufacturer Licenses

  • Type P – For entities that only package or repackage medical cannabis products or label or relabel the cannabis product container.
  • Type N – For manufacturers that produce edible products or topical products using infusion processes, or other types of medical cannabis products other than extracts or concentrates, and that do not conduct extractions.
  • Type 6 – Manufacturer Level 1 – For extractions using mechanical methods or nonvolatile solvents.  Type 6 licenses may also conduct operations in accordance with licenses Type N and Type P.
  • Typer 7 – Manufacturer Level 2 – For extractions using volatile solvents or mechanical methods on the licensed premises provided that the extraction process is noted on the application form and the relevant info is provided to the Department.  Type 7 licenses may also conduct operations in accordance with licenses Type N, Type P, and Type 6.

Edible cannabis products shall be:

  • Not designed to be appealing to children or easily confused with commercially sold candy or foods that do not contain cannabis.
  • Produced and sold with a standardized concentration of cannabinoids not to exceed ten (10) milligrams tetrahydrocannabinol (THC) per serving.
  • Delineated or scored into standardized serving sizes if the cannabis product contains more than one serving and is an edible cannabis product in solid form.
  • Homogenized to ensure uniform disbursement of cannabinoids throughout the product.
  • Manufactured and sold under sanitation standards established by the State Department of Public Health, in consultation with the Bureau, that are similar to the standards for preparation, storage, handling, and sale of food products.
  • Provided to customers with sufficient information to enable the informed consumption of the product, including the potential effects of the cannabis product and directions as to how to consume the cannabis product, as necessary.
  • Marked with a universal symbol, as determined by the State Department of Public Health through regulation.

Application Fees Associated with California’s Cannabis Manufacturing Licenses

Manufacturing license annual fees are determined based on the premises annual gross revenue and includes an application fee.  The annual fees are calculated as follows:

  • Annual gross revenue of up to $100,000 (Tier I), the fee shall be $2,000
  • Annual gross revenue of  $100,001-$500,000 (Tier II), the fee shall be $7,500
  • Annual gross revenue of $500,001-$1,500,000 (Tier III), the fee shall be $15,000
  • Annual gross revenue of $1,5000,001-$3,000,000 (Tier IV), the fee shall be $25,000
  • Annual gross revenue of $3,000,001-$5,000,000 (Tier V), the fee shall be $35,000
  • Annual gross revenue of $5,000,001-$10,000,000 (Tier VI), the fee shall be $50,000
  • Annual gross revenue of over $10,000,000 (Tier VII), the fee shall be $75,000

What kind of track and trace system do I need to operate a Processing or Manufacturing Facility?

California requires an extensive seed-to-sale cannabis tracking system to monitor processing and manufacturing efforts, which is especially important in this part of the supply chain due to conversions into multiple byproducts and higher amounts of waste.  Our processing seed-to-sale-tracking solution provides comprehensive conversion tracking focused on compliant data points.  ItWe are 100% compliant in California; let us sweat the details so you can focus on running your business. Customized to meet the unique regulatory frameworks in each state, BioTrackTHC also features an all-in-one business tool to help you operate every aspect of the cultivation business by itself, or as part of the vertically-integrated cannabis business.

For full rules and regulations on California’s medical cannabis manufacturing program, click here.

Laboratories test cannabis for concentration and contaminants. Prior to entering the consumer market, all regulated cannabis is required to undergo quality assurance testing.  In California, Laboratories are licensed by the Bureau of Medical Cannabis Regulation.

California Laboratory Licenses:

  • Type 8 – Testing
    • Up to $50 million
      • Application Fee: $1,000
      • Annual Fee: $20,000
    • $50 million to $500 million
      • Application Fee: $1,000
      • Annual Fee: $45,000
    • Greater than %500 million
      • Application Fee: $1,000
      • Annual Fee: $90,000

California Laboratory Testing Rules and Regulations

  • Individuals holding a license for laboratory testing may not have any stake in additional license types.
  • For each batch tested, the testing laboratory shall issue a certificate of analysis for selected lots at a frequency determined by the bureau with supporting data, to report both of the following:
    • Whether the chemical profile of the sample conforms to the labeled content of compounds, including, but not limited to, all of the following, unless limited through regulation by the Bureau:
      • Tetrahydrocannabinol (THC).
      • Tetrahydrocannabinolic Acid (THCA).
      • Cannabidiol (CBD).
      • Cannabidiolic Acid (CBDA).
      • The terpenes required by the bureau in regulation.
      • Cannabigerol (CBG).
      • Cannabinol (CBN).
      • Any other compounds or contaminants required by the bureau.
    • That the presence of contaminants does not exceed the levels established by the Bureau:
      • Residual solvent or processing chemicals.Foreign material, including, but not limited to, hair, insects, or similar or related adulterant.
      • Microbiological impurities as identified by the Bureau in regulation.
      • Standards for residual levels of volatile organic compounds shall be established by the Bureau.
      • The testing laboratory shall conduct all testing required by this section in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling and using verified methods.
      • All testing laboratories performing tests pursuant to this section shall obtain and maintain ISO/IEC 17025 accreditation as required by the bureau in regulation.
      • If a test result falls outside the specifications authorized by law or regulation, the testing laboratory shall follow a standard operating procedure to confirm or refute the original result.
      • A testing laboratory shall destroy the remains of the sample of medical cannabis or medical cannabis product upon completion of the analysis, as determined by the bureau through regulations.
      • Any presale inspection, testing transfer, or transportation of cannabis products pursuant to this section shall conform to a specified chain of custody protocol and any other requirements imposed under this division.
      • This does not prohibit a licensee from performing testing on the licensee’s premises for the purposes of quality assurance of the product in conjunction with reasonable business operations
The state released finalized rules outlining testing standards for things like moisture content, residual solvents, and processing chemicals, pesticides, microbiological impurities, mycotoxins, filth and foreign material, heavy metals, and terpenes.  Labs would issue a certificate of analysis for each sample providing test results before cannabis or cannabis-related products can be sold to consumers.  Labs will have to be licensed by the Bureau of Marijuana Control and would be required to show that employees are properly trained.

For a full list of rules and regulations for cannabis laboratory testing in California, click here.

Full-Vertical Integration means that a single licensee owns and operates every segment of the cannabis business supply-chain.  It includes licensing for cultivation, distribution and transportation, manufacturing, and retail dispensing.  In California, vertically integrated cannabis licenses are allowed, but only if operators hold one of several unique license combinations.

Does California allow vertically integrated cannabis businesses?

Yes, but there are limitations to how you are able to operate.  There are many combinations of licenses that a business owner may hold to create a vertically-integrated cannabis business.  These structures are put into place to restrict licensees from taking control of markets and monopolizing geographic regions.  Here are the licensing combinations you can pursue if you’d like to operate a vertically-integrated business.

1. Type 1, 1A, 1B, 2, 2A, or 2B licensees may also hold either a Type 6 or 7 license.

Type 1 through 2B are cultivation licenses varying from 500-10,000 square feet of canopy space (see cultivation tab for specifics).  Type 6 and 7 licenses are manufacturing licenses.  This combination would allow you to own a substantial cultivation facility as well as a full cannabis manufacturing and processing facility.

2. Type 6 or 7 licensees, or a combination thereof, may also hold either a Type 1, 1A, 1B, 2, 2A, or 2B state license.

This is the same scenario as described in #1 – Type 6 and Type 7 processing licensee holders may also hold Type 1 through Type 2B cultivation licenses.  It allows licensees to operate both the cultivation and manufacturing phase of the cannabis business vertical.

3. Type 10A licensees may apply for Type 1, 1A, 1B, 2, 2A, or 2B state license, or a combination thereof.

This is the same scenario as #4, just reversed.  This allows licensees of producing dispensaries to apply and obtain a cultivation license Types 1 through 2B.

4. Type 11 licensees shall apply for a Type 12 state license, but shall not apply for any other type of state licenses

This allows distributors (Type 11) and transporters (Type 12) to receive a license for both.  Transporters and distributors are not permitted to hold any other license types.

What kind of track and trace software do I need to operate a full vertical cannabis business?

California will require licensees to track and trace cannabis and cannabis-related products at every stage of the vertically integrated cannabis business supply-chain for regulatory and compliance reporting requirements. Our all-in-one cannabis business solution and inventory management system provides comprehensive seed-to-sale cannabis tracking with a focus on compliant data points.  We are 100% compliant in California and one of the few cannabis track and trace software’s to feature a full vertical interface, allowing you to run the entire vertically-integrated business model through a single, uniform system; let us sweat the details so you can run your business.

Full California cannabis licensing and regulations can be found here.

Caregivers grow and process cannabis on behalf of patients. They cannot charge for cannabis, only recoup the costs of goods.

Current Estimated Patient Counts: 720,442

How can I obtain a California Medical Marijuana Card?

Before a patient can obtain medical cannabis in California, they must get a physician recommendation and, if desired, apply for a Medical Marijuana Identification Card (MMIC).

In order to receive a recommendation, patients need to visit a qualifying physician with the required documentation.  If the physician decides that medical cannabis is a viable treatment option, they will write the recommendation.

What documents are required for an evaluation?

  • Government Issued ID
  • Optional- previous medical history documentation
  • Proof of Residency- up to the discretion of the practitioner

What are the Fees for an evaluation?

  • Fees vary based on the practitioner but are generally $40-$100

Medical Marijuana Identification Card (MMIC)

Once a patient has received their recommendation they are allowed to purchase medical cannabis. If they choose, they may register their patient or caregiver status with the California Department of Health and receive a Medical Marijuana Identification Card. Though not required, there are some advantages in obtaining a Medical Marijuana Identification Card.

In most cases, a physician recommendation is all that is necessary to purchase cannabis from a medical cannabis dispensary. However, at the discretion of the operator, a dispensary may require a Medical Marijuana Identification Card to purchase cannabis. Additionally, cannabis sales to registered patients are not subject to sales tax.

What documents are required to obtain a Medical Marijuana Identification Card?

  • Copy of Physician Recommendation
  • Proof of Identity
  • Proof of Residency

What are the fees for receiving a Medical Marijuana Identification Card?

  • $66.00 application fee ($33.00 for Medi-Cal patients)
  • $66.00 annual fee ($33.00 for Medi-Cal patients)

Note- counties and cities may have additional fees

For more information on obtaining a physician recommendation or receiving a Medical Marijuana Identification Card, visit the California Department of Health Medical Marijuana home page.

California Cannabis Track and Trace Requirements

(Seed-to-Sale Tracking)

California’s Marijuana Program is operated by the Bureau of Medical Cannabis Regulation in cooperation with the California Department of Public Health (CDPH) and the California Department of Food and Agriculture (CDFA).  Licensees are required to submit data to the state’s cannabis tracking system, METRC, and will be required to maintain records and logs of the following business information.  Learn how BioTrackTHC users will never have to login to METRC!

All of this information, as well as the full written rules and regulations released by the California Bureau of Cannabis Control, can be found here.

Want to see the most complete full-vertical METRC integration in cannabis? With BioTrackTHC, you’ll never have to login to METRC. Learn more.

Click here to contact us or submit a support ticket

For the latest cannabis-related legislative updates on California, check out our Cannabis Bill Tracker!

The following are direct rules and regulations pulled from the California Bureau of Cannabis Control.  These requirements strictly focus on those that can be addressed by a cannabis track and trace system.  The full set of rules and regulations for cannabis businesses in California can be found here.

5049. Track and Trace Reporting (all license types)

(a) A licensee shall record in the track and trace system, all commercial cannabis activity, including any:

(1) Packaging of cannabis goods.

(2) Sale of cannabis goods.

(3) Transportation of cannabis goods to a licensee.

(4) Receipt of cannabis goods.

(5) Return of cannabis goods.

(6) Destruction and disposal of cannabis goods.

(7) Laboratory testing and results.

(8) Any other activity as required pursuant to this division, or by any other licensing authority.

(b) The following information shall be recorded for each activity entered in the track and trace system:

(1) Name and type of the cannabis goods.

(2) Unique identifier of the cannabis goods.

(3) Amount of the cannabis goods, by weight or count.

(4) Date and time of the activity or transaction.

(5) Name and license number of other licensees involved in the activity or transaction.

(6) If the cannabis goods are being transported:

(A) The licensee shall transport pursuant to a shipping manifest generated through the track and trace system, that includes items (1) through (5) of this subsection, as well as:

(i) The name, license number, and premises address of the originating licensee.

(ii) The name, license number, and premises address of the licensee transporting the cannabis goods.

(iii) The name, licensee number, and premises address of the destination licensee receiving the cannabis goods into inventory or storage.

(iv) The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any.

(v) Arrival date and estimated time of arrival at each licensed premises.

(vi) Driver’s license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport.

(B) Upon pick-up or receipt of cannabis goods for transport, storage, or inventory, a licensee shall ensure that the cannabis goods received are as described in the shipping manifest, and shall record acceptance and acknowledgment of the cannabis goods in the track and trace system.

(C) If there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received by the licensee, the licensee shall record and document the discrepancy in the track and trace system and in any relevant business record.

Bureau of Cannabis Control Emergency Regulation Text Page 35 of 115

(7) If cannabis goods are being destroyed or disposed of, the licensee shall record in the track and trace system the following additional information:

(A) The name of the employee performing the destruction or disposal.

(B) The reason for destruction or disposal.

(C) The name of the entity being used to collect and process cannabis waste, pursuant to section 5055.

(8) Description for any adjustments made in the track and trace system, including, but not limited to:

(A) Spoilage or fouling of the cannabis goods.

(B) Any event resulting in exposure or compromise of the cannabis goods.

(9) Any other information as required pursuant to this division, or by any other applicable licensing authorities.

(c) Unless otherwise specified, all transactions must be entered into the track and trace system by 11:59 p.m. Pacific Time, on the day the transaction occurred.

(d) Licensees shall only enter and record complete and accurate information into the track and trace system, and shall correct any known errors entered into the track and trace system immediately upon discovery.

All of the California Bureau of Cannabis Control’s rules and regulations for cannabis licenses can be found here.

The following are direct rules and regulations pulled from the California Department of Food and Agriculture and the California Bureau of Cannabis Control.  These requirements strictly focus on those that can be addressed by a cannabis track and trace system.  The full set of rules and regulations for cannabis cultivators in California can be found here.

Article 5. Records and Reporting

  • 8400. Record Retention.

For the purposes of this Chapter, the term record includes all records, applications, reports or other supporting documents required by the department.

(a) Each licensee shall keep and maintain the records listed in subsection (d) for at least seven (7) years from the date the document was created.

(b) Records shall be kept in a manner that allows the records to be provided at the licensed premises or delivered to the department, upon request.

(c) All records are subject to review by the department during standard business hours, or at any other reasonable time, or as otherwise mutually agreed to by the department and the licensee. For the purposes of this section, standard business hours are deemed to be 8:00am – 5:00pm (Pacific Standard Time). Prior notice by the department to review records is not required.

(d) Each licensee shall maintain all of the following records on the licensed premises, including but not limited to:

(1) Department issued cultivation license(s);

(2) Cultivation plan;

(3) All records evidencing compliance with the environmental protection measures pursuant to sections 8304, 8305,

8306 and 8307 of this Chapter;

(4) All supporting documentation for data or information input into the track-and-trace system;

(5) All UIDs assigned to product in inventory and all unassigned UIDs. UIDs associated with product that has been retired from the track-and-trace system must be retained for six (6) months after the date the tags were retired;

(6) Financial records, including but not limited to, bank statements, tax records, sales invoices, and sales receipts;

(7) Personnel records, including each employee’s full name, social security, or individual tax payer identification number, date of beginning employment, and date of termination of employment if applicable;

(8) Records related to employee training for the track-and-track system or other requirements of this Chapter. Records shall include, but are not limited to, the date(s) training occurred, description of the training provided, and the names of the employees that received the training;

(9) Contracts with other state licensed cannabis businesses;

(10) Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity;

(11) Security records; and

(12) Records associated with composting or disposal of cannabis waste.

(13) Documentation associated with loss of access to the track-and-trace system prepared pursuant to section 8402 (d) of this Chapter.

(e) All required records shall be prepared and retained in accordance with the following conditions:

(1) Records shall be legible; and

(2) Records shall be stored in a secured area where the records are protected from debris, moisture, contamination, hazardous waste, fire and theft.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26013, 26055, 26060, 26060.1,

26067, 26069, 26160, and 26161, Business and Professions Code.

  • 8401. Sales Invoice or Receipt Requirements.

The licensee shall prepare a sales invoice or receipt for every sale or transport of cannabis or nonmanufactured cannabis product to another licensee. Sales invoices and receipts may be retained electronically but must be readily accessible for examination by the department, other state licensing authorities, any state or local law enforcement authority, and the California Department of Tax and Fee Administration. Each sales invoice or receipt shall include all the following:

(a) Name, business address, and department issued license number of the seller;

(b) Name, business address, and department issued license number of the purchaser;

(c) Date of sale or transfer (month, day and year). The date of any sale or transfer of cannabis and nonmanufactured cannabis products shall be the date of transfer to the licensee receiving it;

(d) Invoice or receipt number;

(e) Weight or quantity of cannabis and nonmanufactured cannabis products sold;

(1) Weight. For the purposes of this section a licensee must use wet weight or net weight. Wet weight and net weight shall be measured, recorded and reported in U.S. Customary units (e.g., ounce or pound); or International System units (e.g., kilograms, grams, or milligrams).

(2) Weighing Devices. A licensee shall follow weighing device requirements pursuant to section 8213 of this Chapter.

(3) Count. For the purposes of this section count means the numerical count of the individual plants or units.

(f) Cost to the purchaser, including any discount applied to the total price, shall be recorded on the invoice.

(g) Description for each item including strain or cultivar, and all of the applicable information below:

(1) Plant;

(2) Flower;

(3) Leaf;

(4) Shake;

(5) Kief; and

(6) Pre-rolls.

(h) Signature of the seller, or designated representative of the seller, acknowledging accuracy of the cannabis and nonmanufactured cannabis products being shipped.

(i) Signature of the purchaser, or designated representative of the purchaser, acknowledging receipt or rejection of the cannabis or nonmanufactured cannabis products.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26161, Business and Professions

Code.

  • 8402. Track-and-Trace System.

Except as provided in section 8405 (e) of this Chapter, each licensee shall report in the department’s track-and-trace system the disposition of immature and mature plants, nonmanufactured cannabis products on the licensed premises, any transfers associated with commercial cannabis activity between licensees, and any cannabis waste pursuant to this Chapter.

(a) The licensee is responsible for the accuracy and completeness of all data and information entered into the track-and trace system. Data entered into the track-and-trace system is assumed to be accurate and can be used to take enforcement action against the licensee if not corrected.

(b) Each licensee shall use the track-and-trace system for recording all applicable commercial cannabis activities. Each licensee shall:

(1) Designate an owner or other party(ies) in the licensee’s organization that can legally represent the licensee, to be the licensee’s track-and-trace account manager(s);

(2) Require the track-and-trace account manager to complete track-and-trace system training as required by the department. If the designated account manager did not complete department required track-and-trace training prior to receiving their annual license, the account manager will be required to register for state mandated system training, as prescribed by the department, within five (5) business days of license issuance;

(3) Designate track-and-trace system users, as needed, and require the users to be trained by the licensee’s track-andtrace account manager in the proper and lawful use of the track-and-trace system before the users are permitted to access the track-and-trace system;

(4) Require the track-and-trace account manager to maintain an accurate and complete list of all track-and-trace system account managers and users and update the list immediately when changes occur;

(5) Cancel any track-and-trace users from the licensee’s track-and-trace system account if that individual is no longer a licensee representative; and

(6) Correct any data that is entered into the track-and-trace system in error within three (3) business days of discovery of the error.

(c) The licensee is responsible for all actions any licensee representatives take while logged into the track-and-trace system or otherwise conducting commercial cannabis activities.

(d) If a licensee loses access to the track-and-trace system for any reason, the licensee shall prepare and maintain comprehensive records detailing all required inventory tracking activities conducted during the loss of access.

(1) Once access to the track-and-trace system is restored all inventory tracking activities that occurred during the loss of access shall be entered into the track-and-trace system within three (3) business days.

(2) A licensee shall document the date and time when access to the track-and-trace system was lost and when it was restored and the cause for each loss of access.

(3) A licensee shall not transfer cannabis or nonmanufactured cannabis products to a distributor until such time as access to the system is restored and all information is recorded into the track-and-trace system.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26160, 26067, 26069 and 26070,

Business and Professions Code.

  • 8403. Track-and-Trace System Unique Identifiers (UID).

(a) Within five (5) business days of the date the licensee’s designated account manager(s) was credentialed by the department to use the track-and-trace system, the licensee shall request UIDs using the track-and-trace system as prescribed by the department.

(1) The licensee shall only use UIDs provisioned and distributed by the department, or the department’s designee.

(2) The licensee shall maintain a sufficient supply of UIDs in inventory to support tagging in accordance with this section.

(3) The licensee shall use the track-and-trace system to document receipt of provisioned and distributed UIDs within three (3) business days of physical receipt of the UIDs by the licensee.

(4) Except as provided in section 8407 of this Chapter, all cannabis shall be entered into the track-and-trace system by the licensee starting with seed, clone propagated onsite or purchased from a licensed nursery, or seedling purchased from a licensed nursery pursuant to this Chapter.

(b) The UID shall accompany the cannabis products through all phases of the growing cycle, as follows:

(1) Licensees with immature plants shall assign a UID to each established lot respectively. The lot UID shall be placed in a position so it is visible and within clear view of an individual standing next to the immature lot to which the UID was assigned, and all UIDs shall be kept free from dirt and debris. For the purposes of this subsection, each lot of immature plants shall not have more than one-hundred (100) immature plants, at any one time. All immature plants in a lot shall be labelled with the corresponding UID number assigned to the lot and shall be contiguous to one another in order to facilitate identification by the department.

(2) Immature plants transferred from a licensed nursery, via a distributor, to a licensed cultivator shall meet requirements of subsection (b)(1) above. Each immature plant intended for retail sale shall have a UID affixed, or be labeled with the corresponding UID number of the lot, and be recorded in the track-and-trace system prior to transfer from the licensed nursery.

(3) The licensee shall apply a UID to all individual plants at the time any plant is moved to the designated canopy area or when an individual plant begins flowering, as defined in Section 8000 (l).

(4) UIDs are required for each mature plant. UIDS shall be attached to the main stem, at the base of each plant. The

UID shall be attached to the plant using a tamper evident strap or zip tie and placed in a position so it is visible and within clear view of an individual standing next to the mature plant to which the UID was assigned and UIDs shall be kept free from dirt and debris. Licensees are prohibited from removing the UID from the mature plant to which it was attached and assigned until the plant is harvested, destroyed or disposed.

(c) Each harvest batch shall be assigned a unique harvest batch name which will be associated with all UIDs for each individual plant, or portion thereof, contained in the harvest batch.

(d) UIDs are required for all cannabis and nonmanufactured cannabis products and shall be associated with the corresponding harvest batch name from which the cannabis and nonmanufactured cannabis products were derived.

(e) Upon destruction or disposal of any cannabis or nonmanufactured cannabis products, the applicable UIDs shall be retired in the track-and-trace system by the licensee within three (3) business days of the destruction or disposal and be performed in accordance with the licensee’s approved cannabis waste management plan.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26160, 26067, 26069 and 26070,

Business and Professions Code.

  • 8404. Track-and-Trace System User Requirements.

(a) All track-and-trace account managers or users, as identified by the licensee pursuant to section 8402 of this Chapter, shall enter all commercial cannabis activities in the track-and-trace system.

(b) Each track-and-trace account manager and user shall have a unique log-on, consisting of a username and password, which shall not be used by or shared with any other person.

(c) No track-and-trace account manager, user, or other licensee representative shall intentionally misrepresent or falsify information entered into the track-and-trace system.

(d) The account manager shall monitor all notifications from the track-and-trace system and resolve all issues included in the notification in the timeframe specified in the notification. An account manager shall not dismiss a notification from the track-and-trace system until the issue(s) included in the notification has been resolved.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26012, 26067, and 26069,

Business and Professions Code.

  • 8405. Track-and-Trace System Reporting Requirements.

(a) Except as provided in section 8405 (e) below, the track-and-trace account manager or users shall report in the trackand-trace system any and all transfers of cannabis or nonmanufactured cannabis products to another licensed entity prior to the movement of the cannabis or nonmanufactured cannabis product off the licensed premises.

(b) The track-and-trace account manager or users shall report in the track-and-trace system, any and all cannabis or nonmanufactured cannabis products physically received or rejected from another licensed within twenty-four (24) hours of receipt or rejection of the products.

(c) The track-and-trace account manager or users shall report in the track-and-trace system any change in the disposition of cannabis plants, as applicable, on the licensed premises. All changes in disposition shall be made within three (3) business days of the change in disposition of the cannabis plants. Changes in disposition of cannabis plants include but are not limited to:

(1) Flowering;

(2) Destruction or disposal;

(3) Harvest;

(4) Processing;

(5) Storage; and

(6) Packaging.

(d) The account manager or user shall be required to record information for each transfer of cannabis or nonmanufactured cannabis products to, or cannabis or nonmanufactured cannabis products received from, other licensed premises.

Required information to be entered includes, but is not limited to:

(1) Name, business address, and department issued license number of the seller;

(2) Name, business address, and department issued license number of the purchaser;

(3) Name and department issued license number of the distributor;

(4) Date of sale, transfer or receipt (month, day and year). The date of any sale, transfer or receipt of cannabis or nonmanufactured cannabis products shall be the date of transfer to the licensee receiving it;

(5) Weight or count of individual units of cannabis or nonmanufactured cannabis products sold, transferred or received;

(A) Weight. For the purposes of this section a licensee must use wet weight or net weight. Wet weight and net

weight shall be measured, recorded and reported in U.S. Customary units (e.g., ounce or pound); or International System units (e.g., kilograms, grams, or milligrams).

(B) Weighing Devices. A licensee shall follow weighing device requirements pursuant to section 8213 of this

Chapter.

(C) Count. For the purposes of this section count means the numerical count of the individual plants or units.

(6) Estimated departure and arrival time;

(7) Actual departure time;

(8) Description for each item including strain or cultivar, and all of the applicable information below:

(A) Plant;

(B) Flower;

(C) Leaf;

(D) Shake;

(E) Kief; and

(F) Pre-rolls.

(9) UID(s).

(e) Temporary Licensees. A licensee operating under a temporary license, issued by the department pursuant to section

8100 of this Chapter, is not required to record commercial cannabis activity in the track-and-trace system as otherwise required by this Chapter. Temporary licensees shall record all commercial cannabis activity in accordance with section

8401 of this Chapter.

(f) Annual licensees may continue to conduct commercial cannabis activities with temporary licensees pursuant to section

8401 of this Chapter.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26067 and 26160, Business and

Professions Code.

  • 8406. Track-and-Trace System Inventory Requirements.

Licensees shall use the track-and-trace system for all inventory tracking activities at a licensed premises, including, but not limited to all the following:

(a) Reconcile all on-premises and in-transit cannabis or nonmanufactured cannabis products inventories pursuant to the time frames defined by the department; and

(b) Record the net weight of all harvested cannabis once the majority of drying, trimming and curing activities have been completed, or within sixty (60) calendar days from the initial harvest date, whichever is sooner.

(c) Licensee’s shall close-out their physical inventory of all cannabis and nonmanufactured cannabis products, and UIDs, if applicable prior to the effective date of any of the following changes to their license:

(1) Voluntary surrender of a temporary license or annual license.

(2) Expiration of an annual license.

(3) Revocation of a license.

(d) Close-out of physical inventory includes, but is not limited to, all of the following items:

(1) Immature plants and their corresponding lot UID(s);

(2) Mature plants and their corresponding plant UID(s);

(3) Harvest batches and their corresponding UID(s);

(4) Nonmanufactured cannabis products and their corresponding UID(s); and

(5) UIDs in the licensee’s possession which have not been assigned in the track-and-trace system.

(e) All transfers and sales shall be documented pursuant to sections 8401 and 8405 of this Chapter.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26067, Business and Professions

Code.

  • 8407. Track-and-Trace System Requirements for Product in Licensee Possession at the Time of Annual License Issuance.

(a) Within thirty (30) business days of receipt of the UIDs ordered pursuant to section 8403 of this Chapter, the licensee shall enter into the track-and-trace system and assign and apply a UID to each existing immature plant lot, each individual mature plant, and all nonmanufactured cannabis products physically located on the licensed premises.

(b) After the thirty (30) day time frame referenced in subsection (a) above expires, all cannabis at the licensed premises shall be entered into the track-and-trace system starting with seed, clone propagated onsite or purchased from a licensed nursery, or seedling purchased from a licensed nursery pursuant to this Chapter. This section shall remain in effect until July 1, 2019.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Section 26067, Business and Professions Code.

  • 8408. Inventory Audits.

The department may perform an audit of the physical inventory and inventory as reported in the track-and-trace system of any licensee at the department’s discretion. Audits of the licensee shall be conducted during standard business hours or at other reasonable time, or as otherwise mutually agreed to by the department and the licensee. For the purposes of this section standard business hours are 8:00am – 5:00pm (Pacific Standard Time). Prior notice of audit is not required.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26015 and 26067, Business and

Professions Code.

  • 8409. Notification of Diversion, Theft, Loss, or Criminal Activity.

Licensees shall notify the department and law enforcement authorities, within three (3) business days of discovery of any diversion, theft, loss of, or criminal activity related to licensee’s cannabis or nonmanufactured cannabis products.

Authority: Sections 26012 and 26013, Business and Professions Code. Reference: Sections 26013 and 26015, Business and

Professions Code

All of the California Department of Food and Agriculture’s rules and regulations for cannabis cultivation licenses can be found here.

The following are direct rules and regulations pulled from the California Department of Health and the California Bureau of Cannabis Control.  These requirements strictly focus on those that can be addressed by a cannabis track and trace system.  The full set of rules and regulations for cannabis manufacturers in California can be found here.


40264. Batch Production Record.
(a) The licensee shall prepare a written batch production record every time a batch of a cannabis product is manufactured. The batch production record shall accurately follow the appropriate master manufacturing protocol, and each step of the protocol shall be performed in the production of the batch.
(b) The batch production record shall document complete information relating to the production and control of each batch, including all of the following details:
(1) The UID, and if used, the batch or lot number, of the finished batch of cannabis product and the UIDs of all cannabis products used in the batch.
(2) The identity of equipment and processing lines used in producing the batch;
(3) The date and time of the maintenance, cleaning, and sanitizing of the equipment and processing lines used in producing the batch, or a cross-reference to records, such as individual equipment logs, where this information is retained;
(4) The identification number assigned to each component (or, when applicable, to a cannabis product received from a supplier for packaging or labeling as a cannabis product), packaging, and label used;
(5) The identity and weight or measure of each component used;
(6) A statement of the actual yield and a statement of the percentage of theoretical yield at appropriate phases of processing;
(7) The actual results obtained during any monitoring operation;
(8) The results of any testing or examination performed during the batch production, or a cross-reference to such results; and

(9) Documentation, at the time of performance, of the manufacture of the batch, including:
(A) The date on which each step of the master manufacturing protocol was performed; and
(B) The initials of the persons performing each step, including:
(i) The initials of the person responsible for weighing or measuring each component used in the batch;
(ii) The initials of the person responsible for verifying the weight or measure of each component used in the batch;
(iii) The initials of the person responsible for adding the component to the batch; and
(iv) The initials of the person responsible for verifying the addition of components to the batch.
(10) Documentation, at the time of performance, of packaging and labeling operations, including:
(A) An actual or representative label, or a cross-reference to the physical location of the actual or representative label specified in the master manufacturing record;
(B) The expected number of packaging and labels to be used, the actual quantity of the packaging and labels used, and, when label reconciliation is required, reconciliation of any discrepancies between issuance and use of labels; and
(C) The results of any tests or examinations conducted on packaged and labeled cannabis products (including repackaged or relabeled cannabis products), or a cross-reference to the physical location of such results.
(11) Documentation at the time of performance that quality control personnel:
(A) Reviewed the batch production record;
(B) Reviewed all required monitoring operation(s) required by this article;
(C) Reviewed the results of all tests and examinations, including tests and examinations conducted on components, in-process materials, finished batches of
cannabis product, and packaged and labeled cannabis products;
(D) Either approved and released–or rejected–the batch for distribution; and


(E) Either approved and released–or rejected– the finished cannabis product, including any repackaged or relabeled cannabis product.
(12) Documentation at the time of performance of any required material review and disposition decision.
(c) The batch production record shall:
(1) Contain the actual values and observations obtained during monitoring and, as appropriate, during verification activities;
(2) Be accurate, indelible, and legible;
(3) Be created concurrently with performance of the activity documented;
(4) Be as detailed as necessary to provide history of work performed; and:
(A) Include information adequate to identify any associated manufacturing facility (e.g., the name, license number, and when necessary, the location of the facility);
(B) Include the date and, when appropriate, the time of the activity documented;
(C) Include the signature or initials of the person performing the activity; and
(D) Include the identity of the product, the UID, and the lot number or batch identifier, if any.

40277. Weights and Measures
(a) Weighing devices used by a licensee shall be approved, tested, and sealed in accordance with the requirements in Chapter 5 (commencing with Section 12500) of Division 5 of the Business and Professions Code, and registered with the county sealer consistent with Chapter 2 (commencing with 12240) of Division 5 of the Business and Professions Code. Approved and registered devices shall be used whenever:
(1) Cannabis or cannabis product is bought or sold by weight or count;
(2) Cannabis or cannabis product is packaged for sale by weight or count;
(3) Cannabis or cannabis product is weighed or counted for entry into the trackand-trace system; and
(4) The weighing device is used for commercial purposes as defined in section 12500 of Business and Professions Code.
(b) For the purposes of this chapter, count means the numerical count of the individual cannabis product units.
(c) For bulk shipments of cannabis and cannabis products, a licensee shall be licensed as a weighmaster, and a certificate issued by a licensed weighmaster, shall be consistent with the requirements in Chapter 7 (commencing with section 12700) of Division 5 of Business and Professions Code.

40282. Inventory Control – Cannabis and Cannabis Products.
(a) A licensee shall establish and implement a written inventory control plan capable of tracking the location and disposition of all cannabis and cannabis products at the licensed premises.


(b) A licensee shall reconcile the on-hand inventory of cannabis and cannabis products at the licensed premises with the records in the track-and-trace database least once every thirty (30) calendar days. Reconciliation shall be performed by one person and independently verified by a second person.
(c) If a licensee finds a discrepancy between the inventory and the track-and-trace database, the licensee shall conduct an audit.
(d) The licensee shall notify the Department within 24 hours if an audit reveals a discrepancy that is not within five percent of the documented inventory.
(e) If a licensee finds evidence of suspected theft or diversion, the licensee shall immediately report the suspected theft or diversion to the Department.

40290. Waste Management.

(d) Waste containing cannabis or cannabis products shall be entered into the track and-trace system as required under Section 40512.

40405. Primary Panel Labeling Requirements: All Products.
(a) The label for a cannabis product shall include a primary panel that includes the following information:
(1) The identity of the product in a text size reasonably related to the most prominent printed matter on the panel;
(2) The universal symbol as prescribed in Section 40412;
(3) The net weight or volume of the contents of the package;
(4) The THC content and CBD content for the package in its entirety, expressed in milligrams per package;
(b) The primary panel text must be in type size no less than 6 point font and be in relation to the size of the primary panel and container.
(c) Nothing in this section prohibits the inclusion of additional information on the primary panel. The content of other cannabinoids or terpenes may be included if such information is verified by the certificate of analysis issued by a licensed testing laboratory.

40406. Additional Primary Panel Labeling Requirements: Edible Products
In addition to the requirements of Section 40405, the primary panel of an edible cannabis product shall include the following information:
(a) The words “cannabis-infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product.
(b) The THC content and CBD content per serving, expressed in milligrams per serving.

40408. Informational Panel Labeling Requirements.
(a) The label for a cannabis product shall include an informational panel that includes the following:
(1) The licensed manufacturer and its contact number or website address;
(2) The date of the cannabis product’s manufacture;
(3) The following statement: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.


(4) If the cannabis product is intended for sale in the medicinal-use market, the statement “For Medicinal Use Only;”
(5) A list of all product ingredients in descending order of predominance by weight or volume;
(6) If an edible product that contains an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, the word “contains,” followed by a list of the applicable major food allergens;
(7) If an edible product, the names of any artificial food colorings contained in the product;
(8) If an edible product, the amount, in grams, of sodium, sugar, carbohydrates, and total fat per serving; 

(9) Instructions for use, such as the method of consumption or application, and any preparation necessary prior to use;
(10) The product expiration date, “use by” date, or “best by” date, if any; and
(11) The UID and, if used, the batch number.
(b) The informational panel text shall be in a type size of no less than 6 point font and in relation to the size of the primary panel and container, unless there is insufficient area on the container available to print all the required information in a type size of no
less than 6 point font. In such a case, the label shall include the warning statements required by paragraph (3) in a type size of no less than 6 point font, and the product shall be accompanied by a supplemental labeling that includes all of the information required by this section. The text of the supplemental labeling shall be no less than 8 point font.

40500. Record Keeping Requirements.
(a) The licensee shall have the following documents available on the premises at all times and shall make the documents available to the Department and any enforcement agency upon request:
(1) The valid state license issued by the Department;
(2) Any other valid license issued by a state cannabis licensing agency;
(3) The valid license, permit, or other approval issued by the local jurisdiction;
(4) The premises diagram;
(5) The current standard operating procedures as defined in Section 40275;
(6) Shipping manifests;
(7) Employee records, including evidence of employee qualifications and training procedures and logs; and
(8) Any other record or documentation required to be kept pursuant to this Chapter or the Act.
(b) The records required pursuant to subsection (a) shall be maintained in a manner immediately accessible on the premises to the Department and any enforcement agencies upon request for a period of two (2) years, except that outdated standard operating procedures shall not be accessible to onsite employees. After two (2) years, records may be maintained by the licensee in an alternate manner, provided that the records can be made available to the Department or enforcement agency no later than 48 hours following a request and that the records are retained for a period of 7 years in total.
(c) All documentation shall be maintained in English.


Article 2. Track-and-Trace System
40510. Track-and-Trace System General Requirements
(a) A licensee shall enter all commercial cannabis activities into the track-and-trace system within 24 hours of occurrence.
(b) Within ten (10) calendar days of notification from the department that the annual license application fee has been processed, a licensee shall register for track-and-trace system training provided by the Department of Food and Agriculture or its designee.
(c) If a licensee has not registered for training pursuant to subsection (a), the licensee shall register for training within five (5) business days of notification from the Department that the license has been approved.
(d) A licensee shall designate at least one owner to be the track-and-trace system account manager. The track-and-trace system account manager shall have the following responsibilities:
(1) Designate authorized track-and-trace system users and require designated users to be trained in the proper and lawful use of the track-and-trace system before the designated user can access the system;
(2) Maintain an accurate and complete list of all track-and-trace system account managers and users and update the list immediately upon any change;
(3) Ensure that each track-and-trace account manager and user has a unique logon, consisting of a username and password, which shall not be shared with or used by any other person;
(4) Cancel any track-and-trace system account manager or user from a track-andtrace system account if the individual is no longer a licensee representative;
(5) Obtain UID tags from the Department of Food and Agriculture, or its designee, and ensure that a sufficient supply of UIDs is available at all times;
(6) Ensure that all inventory is tagged and entered in the track-and-trace system as required by Section 40512 or track-and-trace system requirements.
(7) Correct any information that is entered into the track-and-trace system in error within three (3) business days of discovery of the error;
(8) Monitor all notifications from the track-and-trace system and resolve all issues identified in the notification. The notification shall not be dismissed by an account manager until the issue(s) identified in the notification has been resolved.
(e) No person shall intentionally misrepresent or falsify information entered into the track-and-trace system. The track-and-trace system shall be the system of record. The licensee is responsible for the accuracy and completeness of all data and information entered into the track-and-trace system. Information entered into the track-and-trace system shall be assumed to be accurate and may be used to take enforcement action against the licensee if not corrected.
(f) The licensee is responsible for all actions that a track-and-trace system account manager or user acting as a licensee representative takes while logged into the track and-trace system or otherwise conducting commercial cannabis activities.



40512. Track-and-Trace System Reporting Requirements.
(a) A system account manager or user shall record all of the following activities in the track-and-trace system within 24 hours of the activity:
(1) Receipt of cannabis material.
(2) The transfer to or receipt of cannabis products for further manufacturing from another licensed manufacturer.
(3) All changes in the disposition of cannabis or cannabis products. A change in disposition includes, but is not limited to:
(A) Processing of the cannabis or further processing of the cannabis product;
(B) Packaging cannabis products.
(4) Transfer of cannabis products to a distributor.
(5) Any other activity required by the track-and-trace system to be captured.
(b) The following information shall be recorded for each activity entered into the track-and-trace system:
(1) The licensed entity from which the cannabis material or product is received, including that entity’s license number, and the licensed entity to which the cannabis product is transferred, including that entity’s license number.
(2) The name and license number of the distributor that transported the cannabis material or cannabis product.
(3) The type of cannabis material or cannabis product received, processed, manufactured, or transferred.
(4) The weight or count of the cannabis material or cannabis product received, processed, packaged, or transferred.
(5) The date of receipt, processing, packaging, or transfer.
(6) The unique identifier assigned to the cannabis material or cannabis product.
(7) Any other information required by other applicable licensing authorities.


40513. Track-and-Trace System – Loss of Access
(a) If a licensee loses access to the track-and-trace system for any reason, the licensee shall prepare and maintain comprehensive records detailing all required inventory tracking activities conducted during the loss of access.
(b) Upon restoration of access to the track-and-trace system, all inventory tracking activities that occurred during the loss of access shall be entered into the track-and trace system within three (3) business days.
(c) A licensee shall document the date and time when access to the track-and-trace system was lost and when it was restored and the cause for each loss of access.
(d) A licensee shall not transfer cannabis products to a distributor until such time as access to the system is restored and all information is recorded into the track-and-trace system.


40515. Track-and-Trace System – Temporary Licenses
(a) A licensee operating under a temporary license issued pursuant to Section 40126 is not required to record commercial cannabis activity in the track-and-trace system as otherwise required by this article. Temporary licensees shall track all commercial cannabis activities on a paper sales receipt or invoice that includes the following information:
(1) Name, address, and license number of the seller;
(2) Name, address, and license number of the purchaser,
(3) Date of sale or transfer;
(4) Description or type of cannabis or cannabis product;
(5) Weight or quantity of cannabis or cannabis product sold or transferred;
(6) Cost to the purchaser of the cannabis or cannabis product.
(b) After issuance of an annual license, the licensee may continue to conduct commercial cannabis activities with temporary licensees in accordance with subsection


(a). Any commercial cannabis activity conducted between annual license holders shall be recorded in the track-and-trace system.


40517. Track-and-Trace System – UID Tag Order
(a) A licensee shall order UID tags within five (5) business days of receiving access to the track-and-trace system. The receipt of the UID tags by the licensee shall be recorded with the track-and-trace system within three (3) business days of receipt.
(b) Any licensee in operation at the time access to the track-and-trace system is granted shall input all inventory into the track-and-trace system no later than 30 days after receipt of the UID tags.

All of the California Department of Public Health’s rules and regulations for cannabis manufacturing licenses can be found here.

WHY BIOTRACKTHC?

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CULTIVATION OPERATIONS

Closely monitor thousands of plants in our easy-to-use cultivation grid, while logging strain notes to monitor genealogy and ongoing clone potency, optimize your future yields and watering/nutrient cycles; all while easily staying compliant.

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PROCESSING AND MANUFACTURING

Convert multiple barcodes and any variation of product conversions you please. Easily stay compliant while managing your inventory down to the exact milligram.

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DISPENSARY POINT-OF-SALE

Monitor thousands of products through a single interface. Automatically keep track of expiration dates, product recalls, and test results, keeping you safe from legal complications.

COMPLIANCE KEY FEATURES

 Compliance is in our minds through all facets of our Seed-to-Sale Cannabis Tracking

  • Custom Compliance-Focused Reporting

  • Track Waste, Destruction and Account for Conversion and Moisture Losses

  • Transport Manifests With All Necessary Information

  • Real-Time Patient and Customer Limit Tracking

  • Real-Time Product Recalls

  • Compliant Labels Customized with Your Business Logo, Name, and Much More

Locally Hosted Solution

Utilizing a locally hosted server, as opposed to a cloud server, increases security and reliability. Retain 100% database ownership knowing no one, not even BioTrackTHC employees, can access sensitive client or operational data.

Driven by Data

Take advantage of over 100 advanced reports to make profit-minded decisions based on predictive yields, sales trends, average wait time and more. Need to upload financial reports to an accounting system? Easily export reports, save in the desired format, and upload.

Compliance Focused

Adherence to state and local cannabis regulations in all active markets. Print compliant labels, enforce sales limits, and verify recommendations quickly and accurately. Regular system updates ensure compliance if regulations change.

Customer Service Oriented

Live Phone, Chat, and Email support from 8am-8pm PST. Supplement initial training with online tutorials, wikis, and monthly best practices features.

CALIFORNIA SUCCESS STARTS WITH CONTACTING US!

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