WINTER LLP Update: Final Cannabis Regulations Approved

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Dear All,

On January 16, 2019, California’s three state cannabis licensing authorities announced that the Office of Administrative Law (OAL) officially approved state regulations for cannabis businesses across the supply chain. Please note, these new cannabis regulations take effect immediately, meaning the previous emergency regulations are no longer in effect.

First, we would like to address the sections that we previously commented on during the 15-day comment period back in October.

Section 5032(b), Commercial Cannabis Activity.

(b) Licensees shall not conduct commercial cannabis activities on behalf of, at the request of, or pursuant to a contract with any person that is not licensed under the Act.

Such prohibited commercial cannabis activities include, but are not limited to, the following:

(1) Procuring or purchasing cannabis goods from a licensed cultivator or licensed manufacturer.

(2) Manufacturing cannabis goods according to the specifications of a non-licensee.

(3) Packaging and labeling cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee.

(4) Distributing cannabis goods for a non-licensee.

The Bureau has removed the specific examples of “prohibited commercial cannabis activity,” such as “packaging and labeling cannabis goods under a non-licensee’s brand or according to the specifications of a non-licensee. However, this does not mean that the State is authorizing white labeling/branding for unlicensed brand owners; in fact the opposite holds true. Practically, this means that (1) the operating company (licensed/permitted entity) needs to hold the IP (trademarks, copyrights, brands) instead of the management company; and (2) companies that do not hold a permit/license cannot get their products made by permitted manufacturers (white-labeling) unless they are included as an owner of the license.

The Bureau provided a few examples of an authorized brand owner/licensee relationship:

  • “if a licensee includes as one of their owners a brand owner, the licensee can produce the branded products because in this case the licensee is not engaged in commercial cannabis activity on behalf of an unlicensed person. Because the owner of the brand is an owner of the licensee, there is no unlicensed person involved.”
  • “Generally, where a brand-owner may be dictating the standards and specifications of a product (i.e. providing direction or control), they would likely be considered an owner that would need to be disclosed under section 5003. Where ownership is properly disclosed, such persons would not be considered non-licensees, and would be able to conduct business under their license.”

We understand there is a lot of confusion/debate surrounding this issue. We are reviewing angles and alternatives to work through these vague/troubling rules. Additionally, we are seeking further clarification from the State regarding how IP licensors/licensees may be classified (as owners, financial interest holders, etc.). Please stay tuned.

Section 5003(b)(6)(D), Designation of Owner.

(b)Owner means any of the following:

(6) An individual who will be participating in the direction, control, or management of the person applying for a license. Such an individual includes any of the following:

(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) The trustee(s) and all persons who have control of the trust and/or the commercial cannabis business that is held in trust.

(5) An individual entitled to a share of at least 20 percent of the profits of the commercial cannabis business.

(6) An individual who will be participating in the direction, control, or management of the person applying for a license. Such an individual includes any of the following:

(A) A general partner of a commercial cannabis business that is organized as a partnership.

(B) A non-member manager or managing member of a commercial cannabis business that is organized as a limited liability company.

(C) An officer or director of a commercial cannabis business that is organized as a corporation.

(D)Any individual who assumes responsibility for the license. Such an individual includes but is not limited to, the following:

(i) An individual who is managing or directing the commercial cannabis business in exchange for a portion of the profits.

(ii) An individual who assumes responsibility for the debts of the commercial cannabis business.

(iii) An individual who is determining how a portion of the cannabis business is run, including non-plant-touching portions of the commercial cannabis business such as branding or marketing.

(iv) An individual who is determining what cannabis goods the commercial cannabis business will cultivate, manufacture, distribute, purchase, or sale.

The Bureau has removed section D, “any individual who assumes responsibility for the license” completely. The Bureau addressed comments as follows: “A salesperson earning a fractional share in profits would not be considered an owner under this section but would be a financial interest holder. Commenter’s comment demonstrates that rather than providing clarification, subsection (b)(6)(D) created more confusion. Therefore, the Bureau has determined that it is necessary to withdraw the subsection.”

Therefore, consultants, Marketing Managers, etc. will not have to be disclosed as “owners” unless they fulfill one of the other definitions of an owner (20% or more profits, 20% or more ownership interest, board of directors, etc.)

Second, please find a brief summation of some important regulatory changes for each license type. Please note that this is not a comprehensive summary and we advise you to contact us with any questions regarding your specific operation.

BCC Regulations (Retail, Delivery, Microbusiness, Distribution, Testing)

  1. Annual License Application Forms. All BCC applicants will be required to use the applicable forms supplied by the Bureau to submit Transportation Procedures, Inventory Procedures, Non-Laboratory Quality Control Procedures, Security Procedures, and Delivery Procedures.
  2. Cal-OSHA training. Businesses with more than 1 employee must complete a Cal-OSHA 30-hour general industry outreach course within one year of receiving a license.
  3. Business/Owner Modifications. If one or more of the owners of a license change, the new owners shall submit their required information within 14 calendar days of the effective date of the ownership change, but may not need to submit a new license application if at least one existing owner is not transferring his ownership interest.

Distributors

  1. Pre-rolls. Distributors may package and label pre-rolls that consist exclusively of any combination of flower, shake, leaf, or kief for retail sale.
  2. Exit Packaging. Until January 1, 2020, the child-resistant packaging requirement may be met through the use of a child-resistant exit package at retail.
  3. Distributor to distributor transfer. After a batch passes testing, the goods packaged as they will be sold at retail, may be transported to one or more licensed retailers, distributors, or microbusinesses (previously was only retailers). However, cannabis goods that have not been transported to retail within 12 months of the date on the Certificate of Analysis must be destroyed or re-tested.
  4. Ownership of Vehicles. All vehicles used to transport cannabis goods must be owned or leased by the licensee.

Delivery

  1. Delivery to prohibited cities. A delivery employee may deliver to any jurisdiction within the State of California.
  2. Value of Goods. A delivery vehicle may not carry cannabis goods in excess of $5,000 at any time.

Testing

  1. Sampling. Once a representative sample has been obtained for compliance testing, the testing laboratory that obtained the sample must complete the regulatory compliance testing.
  2. Final Form. All testing of the samples shall be performed on the final form in which the cannabis or cannabis products will be consumed or used.

Temporary Cannabis Event

  1. Other venues allowed. Temporary cannabis event may be held at county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding a temporary cannabis event.

MCSB Regulations (Manufacturing)

  1. Cal-OSHA training. Businesses with more than 1 employee must complete a Cal-OSHA 30-hour general industry outreach course within one year of receiving a license.
  2. Cannot use CBD from hemp. Manufacturers may only use cannabinoid concentrates and extracts that are manufactured or processed from cannabis obtained from a licensed cannabis cultivator (and not from hemp cultivators).
  3. Retail Food/ABC Premises. A manufacturer shall not manufacture, prepare, package, or label cannabis products in a location that is operating as a retail food establishment, or that is licensed by the Department of Alcoholic and Beverage Control.
  4. Requirements of Operating Procedures and Policies have changed (new written protocols required).
  5. Final Form. Cannabinoid content may be included on the product label or added to the product at the distribution premises after issuance of the regulatory compliance testing Certificate of Analysis.
  6. Child-Resistant Packaging. Until January 1, 2020, the child-resistant packaging requirement may be met through the use of a child-resistant exit package at retail.
  7. Edible cannabis product label may not contain a picture of the edible product.
  8. New Labeling and Packaging Requirements. We strongly encourage you to contact us with any questions regarding the new comprehensive packaging and labeling checklist and/or to have us review your packaging and labeling for compliance with the new regulations.

CalCannabis Regulations (Cultivation)

  1. Cal-OSHA training. Businesses with more than 1 employee must complete a Cal-OSHA 30-hour general industry outreach course within one year of receiving a license.
  2. Separate processing areas for each license type. Processing areas, packaging areas, and storage of cannabis subject to administrative hold areas may not be shared among multiple licenses held by one licensee (need to identify separate areas for each license)
  3. Common areas. Pesticide and chemical storage areas, composting areas, and secured waste areas may be shared between licenses held by one licensee.
  4. Light deprivation. Outdoor licensees may not use light deprivation.
  5. Processing. Cultivators may process cannabis, which includes all activities associated with the drying, curing, grading, trimming, rolling, storing, packaging, and labeling of flower, shake, leaf, pre-rolls, and kief that is obtained from accumulation in containers or sifted from loose flower with a mesh screen.
  6. New Labeling and Packaging Requirements. We strongly encourage you to contact us with any questions regarding the new comprehensive packaging and labeling checklist and/or to have us review your packaging and labeling for compliance with the new regulations.

As always, we hope that you find the above useful in navigating this rapidly-evolving landscape. This is by no means a comprehensive summary of all of the changes that were implemented; it is simply a quick overview of relevant rules that may be applicable to our Clients.

Please do not hesitate to contact us if you have further questions or need clarification regarding any of the new regulations.

WINTER LLP Update: Phoenix Edibles Company Upset Instagram Shut Them Down

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PHOENIX (3TV/CBS 5) – Thinking they’ve been playing by the rules, the owner of an edibles company doesn’t understand why Instagram shut down their pages.
We have covered this issue in the past with a different medical marijuana company.
Nadeem Al-Hasan co-founded Baked Bros Edibles, which sells THC gummies and syrup, in 2014. They are now in 85 dispensaries in Arizona. At the height of their Instagram fame, he said they had 22,000 followers.
“We’ve spent thousands of dollars into social media managers, social media content creation, photography,” Al-Hasan said.
But Nadeem said all that went out the window in late 2015 when their page @bakedbros_az was disabled for violating Instagram’s terms.
“We got it back five months later, and we just had it removed six months ago,” Al-Hasan said.
So they started a new page, @bakedbros_edibles, in January. In March that one got disabled, too. But after we went to Instagram, they said that the second account was “removed in error,” and then restored. They maintain the original account was removed for violating their policies.
Instagram spokeswoman Stephanie Otway also said:
“When people report content or accounts to us, we have a global team of content reviewers who assess that content and take action on it in line with our policies. We receive millions of reports and at times reviewers make mistakes when assessing content and take down content or accounts in error. We give people the option to appeal mistakes here: https://help.instagram.com/366993040048856
“They have appeared, in our review, to have been following the guidelines,” said attorney Todd Winter, who represents cannabis businesses in California and Arizona, including Baked Bros. He said this is not an isolated event.
“A majority of our clients are shut down regularly for no apparent reason,” Winter said.
Otway reiterated their policy to us:
Content that attempts to buy, sell or trade marijuana is not allowed on Instagram, regardless of state or country. We prohibit any marijuana seller, including dispensaries, from promoting their business by providing contact information – and we will remove accounts that violate these policies. We do allow marijuana advocacy content, and dispensaries can also promote the use and federal legalization of marijuana provided that they do not also attempt its sale.
“It’s so subjective to what’s violating the terms so who’s to say who we’re offending, if we are at all,” Al-Hasan said.
He also said he would be playing it safe as much as possible on their page @bakedbrosaz on the social media platform.
“Fingers crossed we don’t get removed,” he said. “That’s part of owning a business, risk, right?”
Copyright 2019 KPHO/KTVK (KPHO Broadcasting Corporation). All rights reserved.

WINTER LLP Update: In Truckee, Cannabis Businesses Are Still Coming Out Of The Shadows

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TRUCKEE, Calif. — Though the town of Truckee has allowed commercial cannabis delivery for a year now with no cap on the number of permits issued, there’s only one operating delivery service fully permitted by the town and the state.
While the town has seemingly strict regulations, working with town staff to obtain a use permit was a relatively smooth process, said Todd Winter, owner of Winter Greens Delivery.
“This is a brand new industry,” said Winter. “It’s always going to seem harsh at the very beginning.”
Winter has also worked as an attorney representing clients in the cannabis industry for the past 10 years.
“In dealing with municipalities all over the state, the Town of Truckee was amazingly receptive in the process,” he said. “The business license process was shorter than anywhere else we’ve dealt with for a client.”
In order to operate legally, businesses must obtain a use permit from both their local municipality and the state. As a veteran of the industry, Winter said licensing his delivery business may have been a smoother process because he was familiar with the regulations.
“I do permits and licenses and everything related to cannabis businesses all over the state of California with my team,” said Winter. “It’s much easier for me than other delivery businesses in town that were faced with challenges that I didn’t have because I have this expertise.”
Truckee’s regulations allow businesses to only deliver to a private physical addresses. However each delivery service must have a fixed location to run operations, at which direct sales cannot take place.
The businesses cannot exceed 3,000 square feet or have a retail storefront. They must maintain at least 600 feet of distance from schools, daycares and youth centers and will be limited to areas zoned for manufacturing, downtown manufacturing, service commercial and general commercial.
Businesses in the general commercial zone may not be located on the ground floor.
Starting a legal cannabis business takes more money and resources than most other businesses, Winter said.
“It’s expensive. You have to find property. You have to talk to landlords that will see eye-to-eye with you and be OK with cannabis in their space.”
In December the Truckee Planning Commission granted Tahoe Herbal Care a use permit, a delivery service attempting to operate out of a second-story suite in Donner Lake Village. The planning commission’s decision was appealed, however, and the owners later withdrew their application due to regulations within the home owners association, according to Jenna Gatto, Truckee planning manager.
“A lot of landowners don’t want cannabis in their space,” said Winter.
As cannabis is still federally illegal, businesses face another hurdle with federal regulations banning them from using bank services.
“It makes it very difficult for cannabis companies to handle simple things like payroll or paying bills,” said Winter. “Fortunately a lot of the industry still works on a cash basis.”
Ultimately Winter said there are no drawbacks to being a legalized cannabis business “because we’re finally coming out of the shadows now.”
Hannah Jones is a reporter for the Sierra Sun. She can be reached at hjones@sierrasun.com or 503-550-2652.

WINTER LLP UPDATE: CCIA SUBMITS TESTIMONY AT HISTORIC HOUSE HEARING ON CANNABIS BANKING

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CCIA PREPARES TESTIMONY FOR HISTORIC HOUSE HEARING ON CANNABIS BANKING

Sacramento,CA – The California Cannabis Industry Association (“CCIA”), which is the leading cannabis trade association in the state of California, has strengthened its advocacy in Washington by submitting testimony to the House Financial Services Committee hearing “Challenges and Solutions: Access to Banking Services for Cannabis-Related Businesses,” scheduled for February 13. As home to the country’s oldest medical cannabis market, established in 1996 by the Compassionate Care Act, and home to the country’s largest legal adult use market, the expert testimony of CCIA Executive Director, Lindsay Robinson, addresses the safety, social, and economic risks and realities experienced with an all cash industry. CCIA’s federal advocacy is in support of the Secure and Fair Enforcement (SAFE) Banking Act, providing the cannabis industry access to banking and to capital markets that they desperately need.
The country’s legal cannabis market has grown to 33 states plus the District of Columbia with legalized medical cannabis and over ten states with legalized adult use cannabis, reaching over $10.4 billion in sales in 2018. Most of this revenue being cash as cannabis businesses do not have access to banks due to Federal illegality.
CCIA Executive Director, Lindsay Robinson, says that “legalization of cannabis is not a partisan issue. We have seen the legalization of cannabis across the political spectrum, and public support is at an all-time high.”
But what does that mean? Robinson says that “Due to the federal government’s continued classification of cannabis as a Schedule I drug under the Controlled Substances Act, the multi-billion dollar U.S. cannabis industry is denied access to banking and capital markets, which are basic necessities for any legitimate industry.”
Robinson’s testimony goes on to explain that “The ability to use U.S. financial institutions for banking is essential to ensure the safety of the cannabis industry and cannabis consumers. Without access to banking, companies are forced to maintain large amounts of cash on hand, pay employees and vendors in cash, and use cash to pay taxes. All of this creates an untenable situation where the safety of consumers, employees, and companies is at risk.”
The lack of access to capital markets by the cannabis industry adds a barrier to social equity applicants attempting to access funding to enter the legal market. Robinson explains that “The lack of access to capital markets, however, means that federal cannabis prohibition continues to place women and minorities at a disadvantage. Although some states have sought to address the issue of diversity in the cannabis space, the costs associated with starting a cannabis company are prohibitively high for those without easy access to capital. Banks’ inability to lend to cannabis entrepreneurs perpetuates the exclusion of women and minorities from the cannabis industry and concentrates opportunities in the hands of a predominantly white, male segment of society who traditionally has more access to capital.”
The many challenges and unintended consequences that are experienced by the legal cannabis industry’s lack of access to banking and capital have been challenging in California, which is why CCIA’s Executive Director is taking her advocacy to the Federal government to find solutions. “For these reasons, CCIA supports the Secure and Fair Enforcement (SAFE) Banking Act. This bill will provide our membership with the access to banking and capital markets that they desperately need. It will increase the safety of the industry by eliminating the need to operate on a cash basis and will help to ensure that women and minorities have access to the capital needed to enter the cannabis industry.

RE: WINTER LLP Update – Passage Of AB-97

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Dear California Cannabis Clients and Friends,

The passage of AB-97 in July brought about several important developments to the California commercial cannabis regulations. Below, please find a quick summary of the changes, as well as additional information about upcoming bills that are of interest.

Provisional Licensure Requirements

Notably, the requirements to obtain a provisional commercial cannabis in California have changed.

Previously, under MAUCRSA, the licensing agencies (BCC, MCSB, Calcannabis) were authorized to issue applicants a provisional license if (1) the applicant held a temporary license for the same premises and same commercial activity as the applied-for provisional license; and (2) if the applicant submitted a completed license application to the appropriate licensing agency, including evidence that CEQA compliance was underway. Applicants must have applied for the provisional license prior to January 1, 2019. The provisional licenses were valid for 12 months from date of issuance and non-renewable.

Now, under the new law, applicants are no longer required to have held or hold a temporary license in order to obtain a provisional license. A provisional license may now be issued if the applicant has submitted a competed annual license application to the Bureau, including evidence that CEQA compliance is underway. Therefore, even if you did not have a temporary license or did not submit your annual application prior to January 1, 2019, you are still eligible to obtain a provisional license by submitting your annual license application now. Provisional licenses are still valid from 12 months of date of issuance, but may be renewable if there are outstanding items necessary to obtain an annual license. The provisional license will be canceled upon issuance of an annual license, denial of an annual license, abandonment, or withdrawal of licensure. The licensing agencies also have the authority to suspend a provisional license if the applicant fails to actively and diligently pursue requirements for an annual license.

Illicit Market Fines

Licensing agencies may issue a citation to any unlicensed person or licensee acting in violation of the CA cannabis regulations. As part of each citation, the licensing agency may assess an administrative fine not to exceed $5,000.00 per violation by a licensee and $30,000.00 per violation by an unlicensed person.

Organic Certification

The bill, not later than July 1, 2021, would require the State Department of Public Health to establish a certification program for manufactured cannabis products comparable to the National Organic Program and the California Organic Food and Farming Act. Persons are not allowed to sell or represent that cannabis or a cannabis product is organic until they have been certified by the Department of Food and Agriculture or the State Department of Public Health.

Equity Funding for Local Jurisdictions (SB-1294)

The BCC was appropriated $10 million to award to cities and counties to assist with equity applicants and licensees. To apply for grant funding, a local jurisdiction must submit an application and the required documentation electronically between July 31, 2019 and August 30, 2019. Jurisdictions that submit timely applications and meet eligibility requirements will receive a minimum grant of $100,000. If your city or county is interested in establishing an equity program or already has one in place, we encourage you to reach out to your city/county officials to apply for funding ASAP.

Additionally, please find a quick summary of pending bills that will be voted upon once the California Legislature returns from its summer recess on August 12, 2019. PLEASE NOTE, these bills have not passed and are not yet in effect.

CBD from Industrial-Hemp (AB-228, PENDING)

If passed, Licensees within the California cannabis regulatory framework may manufacture, distribute and sell food, beverages, and cosmetic products that include cannabinoids, extracts, or derivatives from industrial hemp (CBD). Additionally, the bill would also allow non-licensees to sell foods, beverages, and cosmetics containing CBD derived from industrial hemp, so long as manufacturer demonstrates that the industrial hemp used came from a state or country that has an approved industrial hemp program. Although this will be a huge victory for the gray CA industrial hemp industry, it remains to be seen how the California Department of Public Health plans on ensuring the safety/testing of CBD used in food, beverage, and cosmetic products. Please also note, this is in direct conflict with the FDA’s position on CBD, which states that it is unlawful to add CBD to foods/supplements.

Universal Symbol on Cartridges (AB 1529, PENDING)

If passed, the bill would change a current requirement for universal symbols on marijuana vaporizer cartridges, shrinking the mandated symbol size from a half-inch by half-inch to a quarter-inch by quarter-inch.

Limited Banking in California (SB-51, PENDING)

If passed, the bill would provide for the licensure and regulation of cannabis limited charter banks and credit unions for the purpose of providing banking services to cannabis businesses. The bill would permit special purposes checks to be authorized and used for the payment of state and local fees and taxes, payment of rent on property leased by, or on behalf of, the account holder’s cannabis business, payment of vendors physically located in California, as specified, and the purchase of state and local bonds.

As always, please let us know if you have questions, or need assistance navigating.

WINTER LLP Update: Guidance On Commercial Cannabis Activity

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You will note some very important clarifications on interactions between LICENSEES and NON-LICENSEES. One of the most noteworthy clarifications in our opinion, is the ability to license intellectual property to a LICENSEE from a NON-LICENSEE. As many of you who use our corporate structures know, this is a huge break and departure from the written regs, and one we thought would be the case all along. Now, it appears to be settled in our favor.There are many other important clarifications, so please review carefully. And, as always, please let us know if you have questions or need assistance with anything.

Take good care out there, WINTER LLP

GUIDANCE ON COMMERCIAL CANNABIS ACTIVITY

• Under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), all commercial cannabis activity shall be conducted between licensees. The employees of a licensee may engage in commercial cannabis activity on behalf of the licensee.
• Commercial cannabis activity includes activities that are plant touching such as cultivating, manufacturing, and transporting cannabis, as well as activities that are not plant touching such as procuring and selling cannabis.
• Below are examples of activities that are provided for informational purposes only to assist licensees by providing some general, generic examples. However, whether or not an activity is compliant with statute and regulation requires a case-by-case analysis and is determined by the specific facts and circumstances of the unique situation. Therefore, the examples below are not automatically allowable but rather provide a sampling of potentially allowable activities based on information derived from inquiries submitted to the Bureau.
Examples of Potentially Allowable Activities:
• Licensees may enter into intellectual property licensing agreements with unlicensed entities. However, the intellectual property holder cannot exert control over the licensee’s commercial cannabis operations. If the intellectual property holder is exerting control over the licensee’s commercial cannabis operation, then the intellectual property holder must be disclosed as an owner on the license.
GUIDANCE ON COMMERCIAL CANNABIS ACTIVITY
• Licensees may use the services of unlicensed entities such as consultants and brokers to conduct non-commercial cannabis activity such as renting property, purchasing packaging, or leasing equipment for use by the commercial cannabis business. Consultants or brokers that are engaged in commercial cannabis activity for a licensee, such as procuring or purchasing cannabis for a licensee, must be included as either an owner or financial interest holder on the license.
• Licensees may package and label cannabis with another licensee’s brand. For example, a licensed distributor may package and label cannabis with a licensed retailer’s brand on behalf of the licensed retailer.
• Licensees may use a referral service or agency to find a licensed distributor to distribute cannabis goods. The referral service or agency is not permitted to share in any profits or revenue from the agreement or have any direction or control over a license, unless the referral service or agency is disclosed as an owner or financial interest holder of the license.
• Licensees may procure or purchase cannabis on behalf of or at the request of another licensee, such as a licensed distributor procuring cannabis for a licensed manufacturer. Licensees may not procure or purchase cannabis on behalf of any person that is not licensed under MAUCRSA.
• Licensees may enter into rental agreement where the landlord takes a percentage of a licensee’s profits if the landlord is disclosed as an owner or financial interest holder of the license.
• Licensed retailers and licensed microbusinesses may contract with a service that provides a technology platform to facilitate delivery of cannabis goods to customers if the service does not share in the licensee’s profits.
• Licensees may hire an advertising agency or marketing firm to build and/or promote the licensee’s brand. The advertising agency is not permitted to share in any royalties or a percentage of profits or revenue of the licensee unless disclosed as an owner or financial interest holder of the license.
• Licensees may purchase the right to use a patent for cannabis extraction. The patentholder is not permitted to share in any royalties or a percentage of profits of the licensee unless the patent-holder is disclosed as an owner or financial interest holder on the license.
• Licensees may purchase non-cannabis materials such as empty cartridges, batteries, packaging, extraction equipment, grow lights, and transportation and delivery vehicles, from unlicensed businesses.
• Licensed cannabis event organizers may only coordinate cannabis events. Licensed cannabis event organizers are not authorized or licensed to engage in commercial cannabis activity governed by manufacturing licenses, cultivation licenses, distribution licenses, or retail licenses.
This informational document is not meant to implement, interpret, or make specific any existing laws or regulations.
REVISED: 03/19
Bureau of Cannabis Control
2920 Kilgore Road
Rancho Cordova, CA 95670
E bcc@dca.ca.gov | P (833) 768-5880
For the latest updates, follow the Bureau on social media
WWW. B C C . C A . G OV

WINTER LLP UPDATE: California Cannabis Ballot Measure Results Are Now Available!

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The following local jurisdiction ballot measures authorizing cannabis taxes were approved by the voters on the November 6, 2018 election:

City/County

Passed Cannabis Tax Measure

Comments

City of Atascadero

(San Luis Obispo County)

 Measure E-18 passed with 73% of the vote. Only testing and delivery has been previously allowed. The new tax measure taxes cannabis businesses, but no ordinances have been drafted. The passage of the ballot measure authorizing taxes for cultivation, retail, testing, distribution and all other cannabis businesses may indicate forthcoming commercial cannabis ordinances and a newly permitted area.

City of Atwater

(County of Merced)

 Ballot measure A passed with 64.75% of the vote. Cannabis regulated since May 2018 under a Cannabis Business Pilot Program. Requires a CUP. This is a newer market for cannabis businesses.

City of Banning

(County of Riverside)

 Measure N passed with 60.64% of the vote: imposes maximum tax rates on cannabis cultivation, manufacturing, and testing.

Measure O passed with 61.22% of the vote: imposes a 10% tax on gross receipts on cannabis dispensaries.

 All commercial cannabis activities are currently banned and declared a nuisance. However, cannabis ordinances have been adopted by the city council but have not been codified and will take effect January 1, 2019. All commercial cannabis activities require a CUP. No certificate of occupancy will be issued prior to receiving a state license. Ordinance No. 1523 allows, regulates, and zones for cannabis cultivation (indoor cultivation Type 3A only (10,001-22,000 s.f.) in a fully enclosed and secure structure, only in industrial zones), manufacturing (nonvolatile only), and testing. Ordinance No. 1524 establishes application procedures and requirements for Cannabis Regulatory Permits. The ordinances will only take effect if the voters approve Measure N on November 6, 2018.

City of Capitola

(Santa Cruz County)

 Measure I – Cannabis Business Tax (Passed with 75.45% of the vote). Cannabis currently banned except for testing. New tax measures passed the ballot, but no ordinances have been drafted. The passage of a ballot measure authorizing taxes on cannabis businesses is indicative of ordinances that may be forthcoming.

City of Ceres

(County of Stanislaus)

 Measure W — The measure PASSED with 66.03% of the vote. Currently, commercial cannabis activities limited to a case-by-case basis. Ordinances are not drafted. Established a Cannabis Business Pilot Program since May, 2018. Current ordinances are silent as to commercial cannabis activities; however, the passage of a ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of Chula Vista

(County of San Diego)

 Measure Q – PASSED WITH 63.46% OF THE VOTE Cannabis currently banned. The city anticipates that it will be accepting applications for cannabis business licenses sometime on or after January 1, 2019.

A Commercial Cannabis Regulations Application Forum will be held December 13, 2018, from 4 to 6 p.m., to provide information on cannabis regulations and the implementation of recreational sales, manufacturing, cultivation and delivery services in Chula Vista. The forum will be held at Chula Vista City Hall, Council Chambers, 276 Fourth Ave., Chula Vista, 91910.

Cannabis Business License Types

Storefront and Non-Storefront Retailers: Up to three (3) Retailer licenses per Council District. Of the three (3) Retailer licenses per District, no more than two (2) may be Storefront Retailer Licenses. Storefront Retailers are open to the public; they are prohibited from providing delivery services. Non-Storefront Retailers are closed to the public; they are prohibited from making on-site sales and can only conduct deliveries.

Cultivation: Up to ten (10) Indoor Cultivation licenses city-wide. Indoor cultivation sites are limited to twenty thousand (20,000) square feet.

Distribution, Manufacturing, and Testing Laboratories: There are no limits on the number of licenses.

City of Colfax

(Placer County)

 Measure C PASSED with 65.78% of the vote. Cannabis regulated since February, 2018. Indoor and outdoor cultivation are codified. Manufacturing and dispensaries are prohibited. Current regulations authorize only 4 retail commercial cannabis businesses (2 M-type and 2 A-type). The passage of a ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

County of Contra Costa

 Measure R PASSED with 71.7% of the vote. Cannabis currently banned. Cannabis taxes for cultivation, manufacturing, distribution, testing, retail and microbusinesses codified on November 6, 2018. Permit application requirements are codified. The passage of a ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of Daly City

(San Mateo County)

 Measure UU PASSED with 76.8% of the vote. All cannabis activities currently banned. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on all cannabis businesses is indicative of ordinances that may be forthcoming.

County of Del Norte

 Measure B PASSED with 62.75% of the vote. All medical cannabis activities currently banned. All commercial cannabis activities currently silent. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on adult use indoor and outdoor cultivation, manufacturing and retail is indicative of ordinances that may be forthcoming.

City of Dunsmuir

(Siskyou County)

 Ballot measure “T” passed with 71.34% of the vote. Past ordinances silent as to cannabis, except for medical co-ops. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes for cultivation, processing and other cannabis businesses is indicative of ordinances that may be forthcoming.

County of El Dorado

 Measure P – Outdoor and Mixed Light Cultivation (Medical) PASSED

Measure Q – Outdoor and Mixed Light Cultivation (Recreational) PASSED

Measure R – Indoor Medical Cannabis Activities Measure PASSED

Measure S – Indoor Recreational Commercial Cannabis Measure PASSED

 Cannabis currently banned under a temporary moratorium for two years to December 12, 2019, except for medical distribution. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes for cultivation and other cannabis activities is indicative of ordinances that may be forthcoming.

City of Goleta

(Santa Barbara County)

 Measure Z – PASSED WITH 81.92% OF THE VOTE Cannabis regulated since approximately June, 2018, including nursery, cultivation, manufacturing, testing, distribution and delivery. The passage of a ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of Half Moon Bay

(San Mateo County)

 The Measure GG PASSED with 51.2% of the vote. Currently, all cannabis activity prohibited.

Measure passed allowing greenhouse nursery cultivation of immature cannabis plants on existing greenhouse sites in the City’s A-1 (Agricultural/Exclusive Floriculture) Zoning District for cannabis nurseries that receive a license from the City Council and comply with specified standards.

Measure authorizing tax on all cannabis activities passed. The passage of a ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of Hesperia

(San Bernardino County)

 Measure T – PASSED WITH 60.83% OF THE VOTE All non-medical cannabis activities currently banned. However, cannabis tax measure passed. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes for cultivation and other cannabis businesses is indicative of cultivation ordinances that may be forthcoming.

City of Imperial

(Imperial County)

 The measure PASSED with 74.7% of the vote. Adult use cannabis currently banned. January 17, 2018 – With a 3-2 vote the City Council approved Ordinance No. 795, allowing for some medical cannabis businesses, and banning all other commercial cannabis businesses, including all adult use businesses. Ordinances have not been drafted regarding licensure, and zoning ordinances are unavailable. The passage of a ballot measure authorizing taxes for cultivation, retail and other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Jurupa Valley

(Riverside County)

 Measure L – PASSED WITH 51.94% OF THE VOTE Cannabis currently banned except for delivery. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on adult use indoor cultivation, nursery, manufacturing, testing, distribution, microbusinesses and retail is indicative of ordinances that may be forthcoming.

City of La Mesa

(San Diego County)

 Measure V – PASSED WITH 72.52% OF THE VOTE Adult use cannabis currently banned. Only medical cultivation and manufacturing currently allowed. Ordinances for adult use have not been drafted. The passage of a ballot measure authorizing taxes on cultivation and other cannabis businesses is indicative of ordinances that may be forthcoming.

County of Lake

 Measure K PASSED with 69.4% of the vote. Cannabis cultivation regulated since March, 2018, but all other activities are silent in ordinance code. On March 20, 2018, the Board passed an ordinance regulating commercial and personal use cultivation. However, current ordinances only address cannabis cultivation taxation and no ordinances are codified. The passage of a ballot measure authorizing taxes for activities other than cultivation is indicative of ordinances that may be forthcoming.

County of Lassen

 MEASURE M – CANNABIS TAX BALLOT MEASURE (PASSED) All cannabis currently banned and declared a public nuisance. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on cultivation and other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Lindsay

(Tulare County)

 Measure G – PASSED WITH 66.80% OF THE VOTE All cannabis currently banned. Municipal code not available. The passage of a ballot measure authorizing taxes on cannabis businesses is indicative of ordinances that may be forthcoming.

City of Malibu

(County of Los Angeles)

 This measure PASSED with 68.54% of the vote. Cannabis currently banned except for medical dispensaries. Ordinances for adult use cannabis have not been drafted. The passage of a ballot measure authorizing taxes on adult use cannabis businesses is indicative of ordinances that may be forthcoming.

City of Marina

(Monterey County)

 Measure V passed with 64.10% of the vote. Cannabis currently banned. The Mayor of Marina (Bruce Delgado) led the petition drive and citizen ballot initiative that passed. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on medical and adult use cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Morgan Hill

(Santa Clara County)

 Measure I passed with 78.58% of the vote. All cannabis activities currently banned and declared a public nuisance. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on cultivation, manufacturing, testing, distribution, and retail is indicative of ordinances that may be forthcoming.

City of Moreno Valley

(Riverside County)

 Measure M – PASSED WITH 72.56% OF THE VOTE Cannabis regulated since April, 2018. Current code prohibits all adult use cannabis. City council has authorized the total number of cannabis businesses is limited to 27. The maximum number of dispensaries is 8, the maximum number of testing facilities is 2, the maximum number of cultivation facilities is 8, the maximum number of manufacturing facilities is 5, the maximum number of microbusinesses is 2, and the maximum number of distribution centers is 2.

City of Morro Bay

(San Luis Obispo County)

 Measure D-18 – PASSED WITH 73.27% OF THE VOTE. All adult use cannabis activities currently banned. Only medical distribution and retail are currently allowed. Current application process allows medical distribution and 2 retail licenses. Ordinances have not been drafted. The passage of a ballot measure authorizing taxes on cultivation is indicative of ordinances that may be forthcoming.

City of Mountain View

(Santa Clara County)

 Measure Q passed with 80.70% of the vote. Cannabis currently banned except for retail and deliveries. Currently, Mountain View does not allow commercial cannabis activity except medical and adult-use deliveries into the city. City Council has stated that if the measure is successful then the City will begin allowing commercial cannabis businesses in 2019.

County of Nevada

 Measure G PASSED with 75.9% of the vote Cannabis currently banned. Cultivation declared a public nuisance. Ordinances have not been drafted. The passage of ballot measure authorizing taxes on nursery, cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Oakdale

(County of Stanislaus)

 The Measure PASSED with 70% of the vote. Cannabis regulated since February 2018. Cultivation, manufacturing, testing, and distribution permitted with a development agreement and CUP. This is a new market for cannabis activities.

City of Oroville

(Butte County)

 RESULTS: Measure T PASSED with 60% of the vote. Cannabis regulated since August, 2018. On August 7, 2018, the City Council adopted an ordinance allowing for commercial cannabis activities. Tax measure includes nursery, cultivation, manufacturing, testing, distribution and retail. This is a new commercial cannabis area.

City of Oxnard

(Ventura County)

 Results – The Measure PASSED with 78.63% of the vote. Cannabis currently banned except for medical delivery. Ordinances have not been drafted. The passage of ballot measure authorizing taxes for cultivation, manufacturing, distribution, testing, retail sales and all other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Paso Robles

(San Luis Obispo County)

 Measure I -18 PASSED WITH 67.5% OF THE VOTE. All cannabis currently banned except for medical delivery. Tax measure passed is for cultivation, manufacturing, testing, distribution and retail. Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Perris

(County of Riverside)

 Measure G – PASSED WITH 71.05% OF THE VOTE. Indoor and mixed-light cultivation regulated since November, 2017. January 30, 2018 – The City Council ADOPTED an ordinance that would allow medical and adult-use cannabis limited to manufacturing and distribution. This is a new area for cannabis.

City of Placerville

(El Dorado County)

 Results – The Measure PASSED with 67.17% of the vote. Cannabis currently banned by code, but accepting applications and city council will decide after the elections. Ordinances have not been drafted. The passage of ballot measure authorizing taxes for cultivation, retail and all other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Pomona

(Los Angeles County)

 RESULTS: This measure PASSED with 70.44% of the vote. Cannabis currently banned. The City Council is currently discussing terms and provisions for incorporation into a draft ordinance regulating commercial cannabis activities and businesses. There is a consensus to allow both medicinal and adult-use. Ordinances have not been drafted. The passage of ballot measure authorizing taxes for cultivation and all other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Redding

(Shasta County)

 RESULTS: Measure C PASSED with 73.94% of the vote. Cannabis regulated since March, 2018. On March 20, 2018, the City of Redding adopted an ordinance allowing for and regulating medical and adult use commercial cannabis activities. New taxes for cultivation, manufacturing, testing, distribution and retail now authorized. This is a new commercial cannabis area.

City of Redwood City

(San Mateo County)

 Results – The Measure PASSED with 77.6% of the vote. Cannabis regulated since May, 2018. Only indoor medical cultivation and delivery currently allowed. Commercial cannabis activity is prohibited in all zoning districts.

The passage of ballot measure authorizing taxes for cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of San Juan Bautista

(San Benito County)

 A marijuana tax was on the ballot for San Juan Bautista voters in San Benito County, California, on November 6, 2018. It was approved. Cannabis regulated since June, 2018. June 19, 2018 – The City Council adopted Ordinance No. 2018-05, establishing regulations pertaining to recreational and medical cannabis dispensaries, cultivation, testing, distribution, and manufacturing facilities. This is a new cannabis area.

City of San Luis Obispo

(San Luis Obispo County)

 Measure F – PASSED WITH 79.57% OF THE VOTE. The City currently is NOT accepting Cannabis Commercial Business Operator Permit applications at this time. Ordinances have been adopted in May, 2018 but not codified.

On October 16, 2018 the City Council reviewed the Cannabis Operator Permit Draft Evaluation Criteria and provided comments to staff. As a result of these comments, as well as public feedback, the Evaluation Criteria is being revised and will be reviewed on November 27, 2018 by Council.

City of Santa Ana

(Orange County)

 The measure PASSED with 69% of the vote. Cannabis regulated since May, 2018.

May 1, 2018 – The City Council adopted Ordinance NS-2944, which allows commercial cannabis cultivation, manufacturing, and distribution. New taxes passed for cultivation, manufacturing, testing, distribution, and retail. This is a new cannabis area.

City of Santa Clara

(Santa Clara County)

 Results – Measure M PASSED with 75.36% of the vote. All cannabis activities currently banned.

Ordinances have not been drafted. The passage of ballot measure authorizing taxes on nursery, cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Santa Paula

(Ventura County)

 Results – Measure N PASSED with 70.98% of the vote. All commercial cannabis activities currently banned.

Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation and other cannabis businesses is indicative of ordinances that may be forthcoming.

City of Simi Valley

(Ventura County)

 Results – Measure Q PASSED with 65.5% of the vote. All cannabis activities currently banned.

Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Solvang

(Santa Barbara County)

 Measure F – PASSED WITH 80.32% OF THE VOTE. Currently, only medical cannabis activities allowed. City Council adopted an ordinance that allows medical cannabis dispensaries, delivery, cultivation (indoor and mixed-light only), manufacturing (volatile and non-volatile), testing, distribution, and transportation facilities that are owned and operated by bona fide nonprofit organizations in the C-3 zoning district. City Council may limit the number of each type of medical cannabis facility by resolution. Adult-use commercial cannabis activities remain prohibited in the City.

City of Sonora

(County of Tuolumne)

 Measure N PASSED with 68.30% of the vote. There are currently no cannabis businesses allowed to operate in the three-square-mile city limits, but the council approved an ordinance earlier this year that could provide an opening for some medical-only cannabis dispensaries, manufacturing facilities and testing laboratories. The passage of ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of South San Francisco

(San Mateo County)

 Measure LL PASSED with 74.4% of the vote. In 2018, the Council ADOPTED an ordinance that allows for indoor commercial cultivation and an ordinance that bans dispensaries and microbusinesses and allows for manufacturing, testing, distribution, and delivery only businesses. Outdoor cultivation and retail remain prohibited.

This is a new cannabis area.

City of Suisun City

(Solano County)

 Measure C passed with 74.78% of the vote. Cannabis regulated since May, 2018.

The City Council adopted Ordinance No. 750 permitting indoor cultivation, mixed-light cultivation, retailers, non-storefront retailers (i.e., sale by delivery of medicinal cannabis and/or medicinal cannabis products to a qualified patient), manufacturers, testing laboratories and distribution. Outdoor cultivation and microbusinesses prohibited.

This is a new cannabis area.

City of Thousand Oaks

(Ventura County)

 The Measure PASSED with 75.88% of the vote. Cannabis currently banned except for testing. Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation and all other cannabis businesses is indicative of cultivation and other cannabis activity ordinances that may be forthcoming.

Tuolumne County

 The measure PASSED with 62.61% of the vote. All cannabis activities currently banned and cultivation declared a public nuisance. Ordinances have not been drafted. The passage of ballot measure authorizing taxes is indicative of ordinances that may be forthcoming.

City of Vista

(County of San Diego)

 MEASURE AA – PASSED WITH 51.52% OF THE VOTE Cannabis currently banned.

2018 – The City Council adopted Resolutions that place a medicinal cannabis business ordinance and a commercial cannabis tax on the November 6, 2018 ballot, which passed.

Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation, manufacturing, testing, distribution and retail is indicative of ordinances that may be forthcoming.

City of Willits

(Mendocino County)

 RESULTS: Measure I PASSED with 74.9% of the vote. Recreational cannabis currently banned. Ordinances have not been drafted. The passage of ballot measure authorizing taxes on cultivation, retail and all other cannabis businesses is indicative of ordinances that may be forthcoming.

RE: WINTER LLP Update – Monterey lowers cannabis tax!

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Hello all Monterey clients and friends,

In case you were not yet heard, the Monterey County Board of Supervisors voted last night to lower the cannabis tax rates across the board.

Please see the following new tax rates:

  • Mixed Light Cultivation (greenhouses): $5 per square foot
  • Indoor Cultivation: $8 per square foot
  • Nurseries: $1 per square foot
  • Manufacturers: 2.5% of gross receipts
  • Distributors: 2% of gross receipts
  • Testing: 1% of gross receipts
  • Retailers: 4% of gross receipts

Thank you, stay safe, and good luck out there! Todd Winter, WINTER LLP.

WINTER LLP UPDATE: Licensed Weighmaster Q&A

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Dear All,

Some of you may have received emails from the State requiring you to register as a “licensed weighmaster.” We have prepared the following Q&A which will hopefully answer some of your questions about this requirement. Please review carefully, and do not hesitate to reach out with further questions or if you require assistance in registering as a licensed weighmaster.

  1. What is a licensed Weighmaster?

The Division of Measurement Standards (a division within the CA Dept of Food and Agriculture) administers the Weighmaster Enforcement Program. This program licenses individuals or firms as Weighmasters, who are responsible for weighing, measuring, or counting bulk commodities and issuing certificates of accuracy. Weighmaster certificates are then used as the basis to buy or sell the commodity identified on the certificate.

  1. Do I need to register as a licensed Weighmaster?

Pursuant to the Emergency Regulations released by Manufactured Cannabis Safety Branch (Section 40277) and CalCannabis (Section 8213), “For bulk shipments of cannabis and cannabis products, a licensee shall be licensed as a weighmaster, and a certificate shall be issued by a licensed weighmaster.” Therefore cultivators, manufacturers, distributors, and microbusinesses will all need to register as licensed Weighmasters. Please find further information and the application at https://apps1.cdfa.ca.gov/weighmasterpublic/newapplication. Please additionally note there are also County-specific requirements (see #9 below).

  1. What do I need to weigh? (non-exhaustive list)
    1. Containers/packages of trimmings
    2. Containers/packages of flowers/buds
    3. Dried flower
    4. Edibles
    5. Topicals
    6. Shatter
    7. Oils
    8. Tinctures
    9. Extracts
  1. What needs to be on the Weighmaster Certificate?

Please see your County website for requirements. Samples here and here. Copies of voided certificates, issued certificates, and all records need to be maintained for four years.

  1. When do I issue a Weighmaster Certificate?

Whenever payment for your product is dependent on a written or printed weight, measure, or count (any bulk shipments/sales/transports).

  1. What is a Deputy Weighmaster?

All persons who determine weight, measure, or count and/or will be signing weighmaster certificates must be licensed as Deputy Weighmasters. A weighmaster may employ any person to act for them as a deputy weighmaster and shall be responsible for all acts performed by that person. There is no age limit.

  1. What are the fees for a weighmaster license?

Fixed location $75

Each additional fixed location $30

Location other than fixed $200

Deputy $20

  1. How long is a license good for?

The license is good for one year and must be renewed annually.

  1. What kinds of scales do I need? Do I need to register the scales with the County?

More information about the types of scales suitable for commercial purposes can be found here. You must only use weighing devices that have been approved, tested, sealed, and registered with the County Sealer (please find your County and see requirements).

  1. What will happen if I don’t register as a Weighmaster or fail to issue Weighmaster Certificates?

You may be found to be in violation of BPC 26031 (repeated offenses may result in revocation of your State cannabis license), and the violation is punishable by fines up to $1000 and/or six months in jail.

Again, should you need any assistance with the application process (State or County), please let us know.

Thank you, stay safe, and good luck out there! Todd Winter, WINTER LLP.

WINTER LLP UPDATE: Coastal Zone Ordinance – Effective Date TBD (Not Yet)

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Hello All,

As I am sure you are all aware by now, last week the Coastal Commission approved Monterey County’s Coastal Ordinance. This is obviously extremely good news. However, there are still a few more steps that need to be taken by the County before the Ordinance goes into effect. Note, some lobbyists are telling clients the Coastal Ordinance is in effect now. That is NOT accurate.

The County still needs to go through the formal adoption process to approve the ordinance, including a formal hearing and vote by the Board of Supervisors. This hearing is currently scheduled for the March 13th Board of Supervisors meeting. After the Board formally adopts the Coastal Ordinance, it must then go back to the Coastal Commission for final certification.

Based on this timeline, it appears as if the Coastal Ordinance may go into effect sometime in April at the earliest, depending on how long it takes for the Coastal Commission to conduct their final review/approval. Once that is completed, the County can accept your full permit applications.

So, we recommend starting on those now with our office so we are as far along as possible (hopefully complete) by the time April/May rolls around.

As always, we will continue to keep you posted with any new developments, and please feel free to reach out to us with any questions.

Thank you. Todd Winter, WINTER LLP.