(a) Cultivation licensees may change an Original Cultivation License, expiring on or after March 1, 2024, to a Reduced-Size Cultivation License as set forth in this section.
(b) The following definitions apply:
(1) “Original Cultivation License” means the provisional or annual cultivation license type indicated on the license prior to any reduction in size pursuant to this section.
(2) “Reduced-Size Cultivation License” means a cultivation license type specified by the cultivation licensee that satisfies both of the following:
(A) The maximum canopy size of the cultivation license is smaller than the maximum canopy size allowed by the cultivation licensee's Original Cultivation License.
(B) The cultivation license uses the same type of lighting (i.e., Indoor, Outdoor, Mixed-Light Tier 1, or Mixed-Light Tier 2) as the Original Cultivation License.
(c) To change an Original Cultivation License to a Reduced-Size Cultivation License, a cultivation licensee shall do the following:
(1) Specify, on the license renewal form specified in section 15020(d) or the modified renewal date request specified in section 15020.3(e), the request to change the Original Cultivation License to a Reduced-Size Cultivation License. The request shall identify the specific cultivation license type corresponding to the cultivation licensee's requested reduced canopy size.
(2) Submit an updated premises diagram that does all of the following:
(A) Satisfies the requirements of section 15006;
(B) Identifies the canopy area for the Original Cultivation License; and
(C) Identifies the canopy area for the requested Reduced-Size Cultivation License. This canopy area shall be located within the canopy area of the Original Cultivation License.
(3) Pay the annual license fee applicable to the cultivation license type of the requested Reduced-Size Cultivation License as required by section 15014 or section 15014.2.
(4) Meet all other renewal requirements pursuant to sections 15001.2 and 15020, if applicable.
(d) The Department shall verify that all requirements for changing the cultivation license type have been met. If all requirements have been met, the Department shall notify the cultivation licensee in writing that the requirements for the change in cultivation license type have been met.
(e) A Reduced-Size Cultivation License shall remain in effect for the duration of the license term. At each subsequent renewal, the cultivation licensee may do any of the following:
(1) Retain the Reduced-Size Cultivation License.
(2) Change to a different Reduced-Size Cultivation License.
(3) Restore the Original Cultivation License.
(f) A provisional cultivation licensee shall continue to actively and diligently pursue the requirements for annual licensure, as required by section 15001(d). A provisional cultivation licensee may pursue annual licensure for either the Original Cultivation License or a Reduced-Size Cultivation License.
(1) A provisional cultivation licensee shall immediately notify the Department if it chooses to pursue annual licensure for a Reduced-Size Cultivation License. Such notification shall be submitted to the Department in writing by electronic mail to [email protected]. The notification shall identify the name of the provisional cultivation licensee, the Department-issued annual license application number, and the annual license type the provisional cultivation licensee is pursuing.
(2) Notwithstanding subsection (b)(1), after the issuance of an annual cultivation license, that license shall be considered the cultivation licensee's Original Cultivation License for purposes of this section.
(g) This section does not apply to any of the following:
(1) Nursery licenses.
(2) Processor licenses.
(h) Cultivation licenses placed in Limited Operations Status pursuant to section 15020.1 shall not be changed to a Reduced-Size Cultivation License during the same license term.
Credits
Note: Authority cited: Section 26061.5, Business and Professions Code. Reference: Sections 26012, 26050 and 26061.5, Business and Professions Code.
History
1. New section filed 3-11-2024 as an emergency; operative 3-11-2024 (Register 2024, No. 11). This filing is a deemed emergency pursuant to Business and Professions Code section 26061.5(e). A Certificate of Compliance must be transmitted to OAL by 9-9-2024 or emergency language will be repealed by operation of law on the following day.
This database is current through 5/10/24 Register 2024, No. 19.
