As the Golden State blazes a trail in marijuana legislation, businesses navigating this green rush must navigate a maze of regulations to thrive.
From cultivation to consumption, the legal framework governing cannabis operations in California is complex. Here are five pivotal marijuana laws every cannabis entrepreneur must grasp to take advantage of the opportunities the cannabis industry offers:
- You can’t do business everywhere.
- Use California Cannabis Track-and-Trace.
- Separate your waste.
- Render your marijuana waste unusable.
- Secure your waste.
You Can’t Do Business Everywhere
While marijuana is legal for medicinal and recreational use in California, there’s a very important caveat to remember.
Only 44% of cities and counties allow at least one type of cannabis business. Nearly 60% of cities and counties do not allow any retail cannabis businesses.
While there is no single state law that dictates where you can and can’t operate, counties and municipalities have their own individual laws … making it critically important that you do your research to understand both local and state marijuana laws.
In fact, marijuana laws can get complicated when talking about where you can do business. A city may have different rules than a county, and incorporated cities can determine which types of cannabis businesses they want to license if any at all.
In fact, county rules only apply to unincorporated areas of that particular county. If there is a city within that county that doesn’t want to enforce the same rules, it doesn’t have to. That city can legislate its own rules for what is allowed within that city’s boundaries.
You may even come across a county that will not license cannabis businesses, but some cities within that county may say it’s ok to do business there as long as you’re within city lines.
Other municipalities may allow marijuana businesses but may place a limit on how many licenses they issue.
The good news is that the Department of Cannabis Control offers a map on its website that shows you exactly where you can and can’t do business. You can search by your particular marijuana business type, whether you’re a retailer, distributor, manufacturer, cultivator or even tester. Make sure you take a close look at the area you are considering since a distance of a mile can make the difference between whether you are able to get a license to do business or not.
Use California Cannabis Track-and-Trace
All state-issued cannabis licensees must use the California Cannabis Track-and-Trace (CCTT) to record and track information related to their inventory. This is an important law that you must follow if you plan to grow or sell marijuana.
The CCTT, which is also referred to as “seed to sale” reporting, tracks products through the entire supply chain to ensure transparency, accountability and regulatory compliance. The CCTT incorporates specialized software and databases that keep track of several key areas that may impact your business. Some of these areas include:
- Cultivation
- Harvest and processing
- Distribution
- Transportation
- Sales and retail
- Reporting and compliance
- Recalls and safety
- Waste removal
Before you can use the system, you must assign a nonrepeating unique identifier (UID) to each immature lot, flowering plant or distinct cannabis product.
As one of the requirements of the CCTT, you must create a detailed cannabis waste management plan. This comprehensive plan describes in detail your methods for handling any marijuana waste you generate. Key areas you’ll want to address in your waste management plan include:
- Types of waste your cannabis business generates
- Categories of this waste (organic vs. non-organic, hazardous, recyclable)
- How your waste is collected, sorted, stored and handled
- Waste collection schedule
- If composting procedures occur
- Transportation protocols
- Hazardous waste precautions taken
- Disposal methods used
- Employee training
- Reporting methods and required documentation
- Emergency response plans and protocols
Keep in mind that as your marijuana business evolves, you’ll need to regularly review and update your waste management plan, as well as any other required components of the CCTT.
Separate Your Waste
Separating your waste streams helps to ensure that certain types of marijuana waste are properly disposed of according
to the law.
There are multiple waste streams that stem from cannabis production, from plant waste (leaves, stems and roots) to soil that could be contaminated with pesticides or other chemicals. There’s also manufacturing waste that is generated during the extraction, distillation and refinement of cannabis products.
Other additional waste streams often overlooked include:
- Waste water
- Packaging waste
- Laboratory waste
- Electronic waste
- Office waste
Some of the waste generated during your operations can be recycled or safely disposed of with other municipal trash, while some waste requires specialized hazardous waste disposal.
Mixing marijuana or cannabis waste with your other waste streams can create hazardous working conditions for employees, hamper your efforts to maintain sustainability in your operations, and put your business at risk for local, state and even federal fines.
Render Your Marijuana Waste Unusable
California law states that under specific circumstances, your business must render your marijuana or cannabis waste as unusable and unrecognizable.
In other words, a product or type of waste must be irreversibly altered in a way that prevents its use for illicit purposes. The goal of this law is to safeguard public safety and ensure compliance with regulatory requirements.
When should you take these extra steps before disposal? California law says that if any type of cannabis waste comes in contact with THC, you must render it unusable and unrecognizable at the end of the waste management process.
There are additional defined times in which cannabis waste must be rendered unrecognizable and unusable, including:
- When cannabis flowers or products don’t meet testing or quality requirements
- Recalled cannabis flowers or products after a minimum 72-hour quarantine prior to disposal
- Samples held by licensed testing laboratories after at least 45 business days once the analysis is completed
You must also render cannabis flowers and products under video surveillance unless the licensee performs the rendering during active cultivation activities on the premises licensed exclusively for cultivation.
But what exactly does it mean to render a product unusable and unrecognizable? That’s where the law gets a little murky. You must ensure that any marijuana plant materials or by-products are deconstructed so that no one can recognize the substance or consume it. For some businesses, that may simply mean covering the waste in grease or approved detergent. Others choose to grind the materials and blend them with non-consumable solid waste.
Secure Your Waste
If the cannabis waste your business generates isn’t secured, you risk potential legal liabilities, environmental hazards, and the potential for it to land in unauthorized channels.
Securing your waste begins with using designated waste containers that are clearly labeled. Train employees to be aware of which containers are designated for cannabis waste and which are considered hazardous.
Working with cannabis waste disposal companies is an effective way to ensure you have the correct containers within your facility to handle the type of waste you generate. Experienced waste disposal partners will provide you with UN-rated containers that are air-tight and offer maximum odor protection. Many municipalities have laws that address odors that can come from manufacturing cannabis products or growing marijuana plants. It’s important that you’re doing your part to minimize any potential odors that could violate these regulations.
Containers should also include biodegradable lining that prevents spillage while ensuring proper hygiene.
While the containers themselves are an important part of storing your marijuana waste, where you place these containers is just as critical. Make sure you secure containers in a location where they cannot be accessed by the public or any unauthorized employees.
Maintaining a detailed record-keeping system for your cannabis waste disposal activities can also help demonstrate compliance with regulations and provide accountability in the event of an audit or inspection.
By implementing these measures, you can effectively manage your cannabis waste disposal process while mitigating risks and upholding your commitment to environmental responsibility and regulatory compliance.
