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Licensing & Regulating Cannabis Manufacturing CHEAC General Membership Meeting February 2, 2017 Mark Starr, DVM, MPVM Deputy Director for Environmental Health California Department of Public Health 1

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Page 1: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Licensing & Regulating Cannabis

Manufacturing

CHEAC General Membership MeetingFebruary 2, 2017

Mark Starr, DVM, MPVMDeputy Director for Environmental Health

California Department of Public Health1

Page 2: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Released: 12 January 2017Topics Therapeutic effects Cancer Cardiometabolic risk Respiratory disease Immunity Injury and death Prenatal, perinatal, and postnatal

exposure Psychosocial Mental health Problem cannabis use Cannabis Use and abuse of other

substancesRecommendations Address Research Gaps Improve Research Quality Improve Surveillance Capacity Address Research BarriersConclusions

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Page 3: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

National Outlook• 28 states

& DC legalized medical use

• 8 states & DC legalized both medical and adult use

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Page 4: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

1996 • Proposition 215, Compassionate Use Act

2003 • Senate Bill 420, Medical Marijuana Program

2015 • Medical Marijuana Regulation & Safety Act

2016 • Adult Use of Marijuana Act (Prop. 64)

California

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“As the state moves forward with the regulation of both medical cannabis and recreational cannabis, one regulatory structure of cannabis activities across California is needed.” (http://www.ebudget.ca.gov/FullBudgetSummary.pdf, p.130)

Page 5: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

• 2015 – AB 243, AB 266, SB 643 created MMRSA

• 2016 – SB 837 amended the Act to MCRSA

Medical Cannabis

Regulation and Safety

Act

(MCRSA)

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Page 6: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

- Cultivators,

- Track and Trace,

- Environmental Impact Report

- Transporters,- Distributors, - Testing Labs,- Dispensaries

- Manufacturers

CDFA / CalCannabis

DCA / BMCR -

BMC

CDPH / OMCS

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Page 7: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

• Type 1, 1a, 1b = Cultivation; Specialty• Type 2, 2a, 2b = Cultivation; Small• Type 3, 3a, 3b = Cultivation; Medium• Type 4 = Cultivation; Nursery

CDFA

• Type 6 = Manufacturer 1• Type 7 = Manufacturer 2

CDPH

• Type 8* = Testing laboratory (CDPH assist w/regs.)*• Type 10 = Dispensary; General • Type 10A = Producing Dispensary; Max. 3 retail sites• Type 11 = Distributor• Type 12* = Transporter*

DCA

* Prop 64 notes: Type 8 listed under CDPH – legislature can addressType 12 becomes “Microbusiness” 7

License Classifications

Page 8: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Category Outdoor Indoor Mixed-light

SpecialtyCultivator

Type 1Up to 5,000 sq ft,

or up to 50 mature plants

Type 1aUp to 5,000 sq ft

Type 1bUp to 5,000 sq ft

SmallCultivator

Type 25,001-10,000 sq ft

Type 2a5,001-10,000 sq ft

Type 2b5,001-10,000 sq ft

Cultivator Type 310,001 sq ft- 1 acre

Type 3a10,001- 22,000 sq ft

Type 3b10,001- 22,000 sq ft

Nursery Type 4

Prop 64 note: Type 5/5a/5b (large cultivators) added by Prop 64, effective 2023

Page 9: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

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No licensing role (like SWRCB, CDFW, BOE, others)

Provide guidance on the use of pesticides in cannabis cultivation

Provide assistance to the Bureau (DCA) in developing pesticide testing methodologies,

pesticide residue levels, and regulations

DPR has existing guidance documents and enforcement letters

DPR’s* Roles Under The Act

* Department of Pesticide Regulations

Page 10: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Cannabis/cannabis infused products are

neither food nor drug

Dual licensing: local control is at the core of

the regulatory framework

State responsible for inspection, enforcement, product safety, labeling and safe packaging, etc.

State sets minimum standards, locals can be

stricter

Public Health & Safety

Over Arching Principles

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Page 11: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

PermitLicense

Other Authorization

State License*Local Authorization

A city, county, or city and county may adopt ordinances that establish additional standards, requirements, and

regulations for local licenses and permits….(BPC 19316 (a))

* Prop 64 note: Documentation of local authorization not required by Prop 6411

Page 12: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Third Party Testing Lab

DispensaryCultivator

Manufacturer

Distributor

Betw

een

Lic

ense

es

= Transporter

after testing

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Page 13: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Manufacturing license types vary by extraction methods and solvents used

• using non-volatile solventsType 6

(Manufacturing 1)

• using volatile solventsType 7

(Manufacturing 2)

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Page 14: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Example of Extraction Methods and Types of Solvents Used

Food based (e.g. oil, food grade glycerin, butter)

Supercritical fluid extraction (e.g., carbon dioxide)

Uncompressed liquid solvents (e.g., ethanol, methanol, acetone, ‘naptha’)

Compressed liquid hydrocarbons (e.g., butane)14

Page 15: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

MC

Pro

duct

s E

xam

ple

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Page 16: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Staffing

Processes and Procedures

Regulations

Lab Support

Database

Education and Outreach

Plan

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Page 17: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

37 new positions phased in over three years: 2016 – 14 positions

Background research Regulation development

2017 – 2 additional positions Release proposed regulations for public comment Develop licensing procedures

2018 – 21 new positions (total ~$5.6M ongoing) Begin licensing, conducting inspections and

investigations Implement enforcement activities and corrective actions

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CDPH Budget – medical cannabis

Page 18: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Office of Manufactured

Cannabis Safety

(OMCS)

Engage stakeholders

Learn manufacturing

practices

Benefit from other states’ experience Collaborate

with sister agencies

Leverage departmental

know-how

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Page 19: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Conducted Pre-Regulatory Stakeholder Meetings:

1. Redding - September 19, 2016

2. Sacramento - September 20, 2016

3. Santa Rosa - September 22, 2016

4. Oakland - September 26, 2016

5. Fresno - September 27, 2016

6. Los Angeles - October 4, 2016

7. San Diego - October 5, 2016

8. Santa Ana - October 18 , 2016

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Page 20: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

DefinitionsLicensing requirementsGood Manufacturing Practices: process control etc.Security, safety and sanitationDestruction and disposal requirementsLabeling: primary and informational panel, warning

statements and prohibitions*Packaging: not attractive to children, child resistant,

and tamper proof*Product standards*Compliance and enforcement; due process

Out

line

* Prop 64 note: Some differences in Prop 64 (label, resealable, concentration, etc)20

Page 21: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

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Key roles:• Assist DCA to develop regulations for third party testing labs

• Standards, methods, sampling, QC, staff, training, records, etc.

• Compliance lab role in support of OMCS• Inspections, field samples, enforcement, etc.

CDPH’s Cannabis Laboratory in Richmond

Page 22: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

BMCR & CDFA

Licensing Database

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Page 23: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Staffing Regulations SRIA* Database Licensing

January 1, 2018

Goal: begin receiving license applications as of January 1, 2018

* Standardized Regulatory Impact Assessment

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Prop 64 note: Adult-Use regulations will be generally similar and will utilize the emergency regulation process to meet this timeline

Page 24: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Dispensaries: locations, number, hours, medical vs. retail/recreational, etc.

Alternatives (e.g., mobile, CFMs, TFFs, FS/CFP)?

Edibles: types, packaging, labelling, samples, etc.

Food-borne illness: investigations, traceback, recalls, etc.

Inspections: Enforcement; State delegation?

Age limits: (employees, medical vs. recreational)

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Some Questions (CCDEH)…

Page 25: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

State plans for $1M Cannabis “Lab Testing Appropriation”?

Governor’s Proposed Budget: CDPH’s medical cannabis BCP requests

redirection of 3 positions and $410,000 to DCA, due to transfer of licensing of testing laboratories (SB 837)

$1,444,000 for IT application for manufacturer licensing and compliance

Net request: $1,034,000 (FY 18-19) for IT system (not labs)

Other questions?

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CHEAC Questions…

Page 26: Licensing & Regulating Cannabis Manufacturing...Security, safety and sanitation. Destruction and disposal requirements. Labeling: primary and informational panel, warning statements

Webpage: www.cdph.ca.gov/omcs

Email: [email protected]

List Serve: [email protected]

OMCS Chief: Asif Maan, Ph.D.

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