The Law Office of Eric J. Proos, P.C.

Cultivators

 
Proposition 64 was passed in November 2016, and made recreational use of cannabis legal for persons 21 years of age and older.

Proposition 64 was passed in November 2016, and made recreational use of cannabis legal for persons 21 years of age and older.

Types of licenses and fees

Cannabis cultivators must abide by the California Department of Food and Agriculture regulations. These regulations are found in Title 3, Division 8 of the California Code of Regulations. When deciding to start a cultivation operation you must decide which type of license to pursue, and also take into consideration the applicable application fee. There are currently eighteen (18) different cultivation licenses offered, and the application fees range from $135 to $8,655. The different license types and fees are found in Section 8101 of the regulations.

Cultivation Application

Every application for a cultivation license must be submitted to the California Department of Food and Agriculture. The regulations spell out what is needed for each application. However, it takes the right legal team to prepare all the application and necessary documentation correctly. Some requirements of an application are: formation documents, local authorization, name of agent for service of process, valid seller’s permit (if applicable), evidence of the applicant’s legal right to occupy, etc. A complete list of all requirements is found in Section 8102.

 
Proposition 64 also legalized the cultivation of recreational cannabis in California.

Proposition 64 also legalized the cultivation of recreational cannabis in California.

Annual license fees

After submitting an application and the applicable fee, if your cultivation operation is issued an annual license you must pay the annual license fee for that specific license. Annual license fees are only due once an annual license is awarded. The fees range from $1,205 to $77,905. Remember, these are just your state fees. For a complete rundown of all annual license fees, and a description of each license type please refer to Sections 8200 and 8201.

violations

As with any highly regulated industry, there are defined violations. The regulations provide for violations regarding operations and record-keeping. The violations are classified as “serious”, “moderate”, and/or “minor”. Each “serious” violation carries with it a fine ranging from $1,001-$5,000 for operations, $10,001-$30,000, and the possibility of license suspension or revocation. A complete outline of all violations span 20 pages, and can be found in Sections 8601 and 8602.