What Types of Manufacturing Licenses are Available?

What Types of Manufacturing Licenses are Available?

The California Department of Public Health (CDPH) is one of three state cannabis-licensing authorities. CDPH, through its Manufactured Cannabis Safety Branch (MCSB) is responsible for licensing and regulating commercial cannabis manufacturers. Any person or entity wishing to manufacture cannabis products must be licensed with MCSB.

The regulations and their summaries can be viewed by clicking the following links:

Manufacturing – ReadoptTextFINAL

AnnualApp_DocsGuide

Temporary License Application: Cannabis Manufacturing

A temporary license is a conditional license that allows a business to engage in commercial cannabis activity. Once issued, this license will be valid for 120 days and may be extended for additional periods of 90 days, at MCSB’s discretion, if the business has submitted a complete annual license application.

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Manufacturing licenses may be issued for either the adult-use market or the medicinal-use market.

The following license types are available from the Department:

(1) “Type 7,” for extractions using volatile solvents as defined by Section 40100. A Type 7 licensee may also:

(A) Conduct extractions using nonvolatile solvents or mechanical methods on the licensed premises provided that the extraction process is noted on the application form and the relevant information is provided to the Department pursuant to subsection (b) of Section 40128.

(B) Conduct infusion operations on the licensed premises, provided that the infusion method is noted on the application form and that the relevant information is provided to the Department pursuant to subsection (b) of Section 40128.

(C) Conduct packaging and labeling of cannabis products on the licensed premises.

(2) “Type 6,” for extractions using mechanical methods or nonvolatile solvents as defined by Section 40100. A Type 6 licensee may also conduct infusion operations and packaging and labeling of cannabis products on the licensed premises provided that the infusion method is noted on the application form and that the relevant information pursuant to subsection (b) of Section 40128 is provided to the Department.

(3) “Type N,” for manufacturers that produce edible products or topical products using infusion processes, or other types of cannabis products other than extracts or concentrates, but that do not conduct extractions. A Type N licensee may also package and label cannabis products on the licensed premises.

(4) “Type P,” for manufacturers that only package or repackage cannabis products or label or relabel the cannabis product container. Manufacturers that engage in packaging or labeling of cannabis products as part of the manufacturing operation do not need to hold a separate Type P license.

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Disclaimer
Please be aware that possessing, using, distributing and selling marijuana are all federal crimes and that this blog is not intended to give you any legal advice, merely legal issues to consider and inquire about when conducting business with a federally illegal substance. Please also note that even though marijuana is illegal under federal law, you will need to pay federal taxes as though you are a legal entity. This is true even if you are a state law not-for-profit entity.

IRS Circular 230 Notice: We do not provide tax advice. However, to insure compliance with certain U.S. Federal Tax Regulations, we are required to inform you of the following: To the extent this message or any attachments concern tax matters, they are not intended or written to be used and cannot be used by any taxpayer for the purpose of avoiding penalties that might be imposed on the tax payer. Further, please be advised that to the extent this message or any attachments concern tax matters, they are not intended or written to be used and cannot be used by any taxpayer for the purpose of promoting, marketing or recommending to any party any matters addressed herein.

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