Category: State Marijuana Laws

State Marijuana Laws

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California Cannabis Businesses and COVID-19

COVID-19 California

[Update 2023: This 2020 article covers COVID-19 regulations and operating procedures for California cannabis businesses during the recent COVID-19 pandemic. With things returning to a more normal, cannabis businesses should remember that all businesses in California must still comply with the COVID-19 Prevention Non-Emergency Regulations which are in effect until February 3, 2025.]

California cannabis businesses continue to operate during the COVID-19 pandemic.  While Governor Gavin Newsom issued a stay at home order to protect the public and slow the spread of the COVID-19 coronavirus, cannabis businesses have been deemed essential services (along with food, pharmacies, healthcare, gas stations, banks and others) and may continue to operate.   See the California State Public Health Officer’s full designation of “California Essential Critical Infrastructure Workers.”

California cannabis business licensees that continue to operate must still comply with local rules and regulations (cities and counties can impose stricter requirements than the state).  Cannabis businesses must also adopt social distancing and anti-congregating measures, and follow the CDC’s Guidance for Businesses and Employers including measures to reduce transmission among employees, maintain healthy business operations, and maintain a healthy work environment.

During this COVID-19 pandemic, California cannabis businesses may find that they are unable to comply with specific regulatory requirements.  For example, a cannabis storefront retail business may need to provide curbside pickup outside the store.  Cannabis businesses may request relief from specific cannabis licensing requirements under the disaster relief provisions of section 5038 of the California Bureau of Cannabis Control’s (BCC) regulations or under California Department of Food and Agriculture (CDFA) regulation 8207, or under California Department of Public Health (CDPH) regulation 40182. (Read more about California Cannabis Regulations.)

These regulations allow the BCC, CDFA and CDPH to provide temporary relief from specific licensing requirements for a reasonable amount of time. Cannabis licensees must first get approval from the pertinent licensing agency before changing operations. This temporary relief may be requested from the BCC using its Notification and Request Form (BCC-LIC-027). The cannabis licensing agencies may require that certain conditions be followed in order for a licensee to receive temporary relief. (Read more about California Cannabis Licensing.)

For more information useful to cannabis businesses operating in this COVID-19 environment see the Guidance on Requirements to Protect Workers from Coronavirus by the California Department of Industrial Relations Division of Occupational Safety and Health (Cal/OSHA), as well as the bulletin Cannabis Product Safety During COVID-19 by the California Department of Public Health’s Manufactured Cannabis Safety Branch.  For general information regarding the COVID-19 coronavirus response in California see Coronavirus (COVID-19) in California.

At the Law Offices of Jennifer McGrath, we continue to serve our clients during this difficult time and remain available to advise California cannabis businesses.

Contact us by phone or email to learn more about California cannabis law including state, county or city cannabis licensing and cannabis regulations, cannabis regulatory compliance, and cannabis litigation.

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California Cannabis Business County Update

California Counties Cannabis

57% of the voters of California adopted Proposition 64 on November 8, 2016.  (See Vote Results for California 2016, pages 74-76.)  Recent legislation, Assembly Bill 1356, sponsored by Assembly member Phil Ting would have mandated that local jurisdictions in which the voters adopted Proposition 64 (The Adult Use of Marijuana Act – AUMA) by a majority vote must license a limited number of retail medical cannabis businesses.  

Supporters pointed out that over 76% of cities ban medical cannabis storefronts, as do nearly 69% of counties and increasing the availability of cannabis commercial activity through retail licenses would increase availability and access for medicinal cannabis.  Detractors considered this an improper erosion of local control of cannabis permit regulation.  Under Proposition 64, it was determined that the bill needed a 2/3 vote for adoption before it could be presented to the Senate.  (See AB 1356 Local Cannabis Licenses California Assembly Analysis.)  On May 30, 2019, as the bill was scheduled for a third reading, Assembly Member Ting moved the bill to inactive status.  (See the California Cannabis Law Legislative Update for more info about this and other California cannabis bills.)

As a result, California cannabis businesses remain subject to strict local control.  The State of California is organized into 58 Counties.  In turn, the Counties are divided between unincorporated areas and incorporated Cities.  There are 482 incorporated Cities.  The Counties are responsible for regulation in the unincorporated areas.

Almost 70% of the Counties in California voted in favor of Proposition 64 (see Vote Results for California 2016, pages 74-76).  However, of the largest counties by population, cannabis businesses remain banned.  Of the five largest Counties in California, by population, representing over 50% of the population of the State, only Riverside County has established a licensing procedure for commercial cannabis.

Los Angeles County, the largest County in California by population with over 10 million people maintains a ban on all cannabis businesses.  (See California County Populations.)  Los Angeles County represents approximately 25% of the population of the State of California.  The voters of Los Angeles County adopted Proposition 64 by nearly a 20% margin (see Vote Results for California 2016, pages 74-76), yet Los Angeles County has banned all cannabis businesses.

San Diego County, with a population of over 3.3 million, maintains a ban on commercial cannabis businesses.  (See San Diego County Cannabis Regulations.)  The voters of San Diego County adopted Proposition 64 by over a 10% margin.  (See Vote Results for California 2016, pages 74-76.) 

Orange County, with a population of over 3.1 million, maintains a ban on commercial cannabis businesses.  (See Cannabis Regulations Orange County.)  The voters of Orange County adopted Proposition 64 by a 4% margin.  (See Vote Results for California 2016, pages 74-76.) 

San Bernardino County, with a population of over 2.1 million, maintains a ban on commercial cannabis businesses.  (See Cannabis Regulations San Bernardino County.)  The voters of San Bernardino County adopted Proposition 64 by a 5% margin.  (See Vote Results for California 2016, pages 74-76.) 

In comparison, as early as May 1, 2018, Santa Barbara County adopted cannabis business regulations to permit cultivation, manufacturing, retail, distribution, microbusiness and testing labs.  (See Cannabis Regulations Santa Barbara County.)  Outdoor cultivation was specifically prohibited in the coastal zone except for those medical cannabis cultivation sites subject to amortization which expired on June 15, 2019.  (See Medical Marijuana Regulations Santa Barbara County.)  Cannabis businesses must obtain land use approval as well.  The voters of Santa Barbara County adopted Proposition 64 by greater than a 20% margin.  (See Vote Results for California 2016, pages 74-76.) 

On April 9, 2019, the Santa Barbara County Board of Supervisors amended the law regarding retail cannabis businesses.  (See Cannabis Licensing Santa Barbara County.)  Retail storefront cannabis businesses will be limited to one per each of the six defined community plan areas and two in the non-community planned area.  Applicants for retail storefront cannabis businesses must submit a Pre-Qualification Application between July 1, 2019 and August 16, 2019 with no fee.  The Pre-Qualification Application is not available yet.  On August 26, 2019, a list of the Pre-Qualified Applicants will be published and a random drawing from the Pre-Qualified Applicants will take place on September 3, 2019.  (See Cannabis Licenses Retail Storefront Santa Barbara County.)

Also, Monterey County adopted commercial cannabis regulations for all businesses as early as December 5, 2017, with an operative date of December 13, 2016.  The adopted ordinance prohibited outdoor cannabis cultivation and limited indoor cannabis cultivation to greenhouses or industrial building structures that had been permitted or legally established prior to January 1, 2016.  (See Cannabis Regulations Monterey County.)

However, on June 18, 2019, Monterey County will consider an Outdoor Cannabis Cultivation Pilot Program.  The proposed laws will provide outdoor cannabis cultivation opportunities for both the inland and coastal areas of Monterey County, specifically, the Big Sur Land Use Plan area, Carmel Valley Master Plan area, and Cachagua Planning areas.  (See Cannabis Cultivation Monterey County Staff Report.)

Other California Counties have adopted some level of a regulated cannabis market. Notably, Alameda County established its cannabis regulations in 2017.  And Humboldt County began issuing medical cannabis permits as early as 2016.  However, the fact remains that less than one third of California Counties have entered the regulated cannabis marketplace.

Contact us by phone or email to learn more about California cannabis law including state, county or city cannabis licensing and cannabis regulations, cannabis regulatory compliance, and cannabis litigation.