AUMA Prop 64 (Adult Use Marijuana Act 2016) Licensing Provisions

Note: See Senate Bill 94 MAUCRSA (January 11th, 2017) regarding the definition, clarification  and additions of licensing laws under, AUMA, Prop 64, MAUCRSA, AB226, etc.

LICENSE TYPES: Under Prop 64, the license types are: 

(1) Type I = Cultivation; Specialty outdoor; Small – same as  MRCSA (Formally MMRSA), AB266 etc. 

(2) Type IA == Cultivation; Specialty indoor; Small – same  as MRCSA 

(3) Type IB = Cultivation; Specialty mixed-light; Small –  same as MRCSA 

(4) Type 2 = Cultivation; Outdoor; Small – same as MRCSA (5) Type 2A = Cultivation; Indoor; Small – same as MRCSA 

(6) Type 2B = Cultivation; Mixed-light; Small – same as  MRCSA 

(7) Type 3 = Cultivation; Outdoor; Medium – same as  MRCSA 

(8) Type 3A = Cultivation; Indoor; Medium – same as  MRCSA 

(9) Type 3B = Cultivation; Mixed-light; Medium – same as  MRCSA 

(10) Type 4 = Cultivation; Nursery – same as MRCSA 

(11) Type 5 = Cultivation; Outdoor; Large – not available  till 2023 

(12) Type 5A =Cultivation; Indoor; Large – not available till  2023 

(13) Type 5B = Cultivation; Mixed-light; Large – not avail able till 2023 

(14) Type 6 = Manufacturer 1 – same as MRCSA (15) Type 7 = Manufacturer 2 – same as MRCSA (16) Type 8 = Testing – same as MRCSA 

(17) Type 10 = Retailer – same as MRCSA 

(18) Type 11 = Distribution – mandatory requirement  in Prop 64, there is simply no restriction against it being  owned by holders of other licenses as there is in the MCR SA. Micro business type licensees can also do their own  distribution. 

(19) Type 12 =Microbusiness (MCRSA’s type 12 license for  transportation, which is not required under Prop 64)  

The requirements in an application for a city and  county include: 

The exact requirements may vary by local city and county  jurisdiction. Typically, they fall into the following areas: 

Some cities and counties will require more than the below,  and some will not require documents to support each of  these categories. 

 (1) Business plan: a business plan that outlines the  objectives and operating structure of the company as  well as the key management and officers will be required.  The plan will also require projected operating costs and  revenues, planned relationships with suppliers and/ or distributors, and an operational overview of how the  business will work and what will be accomplished in the  first 12-24 months. 

(2) Zoning and Land Use: Is the property far enough  from sensitive use areas? Is it in the correct zoning for land  use purposes according to the municipal or county code  (manufacturing, industrial, commercial vs. residential)? 

The state law requires that any marijuana business be at  least 600 feet from a school. Some local jurisdictions have  also included parks, day care centers, and areas where  youth congregate as “sensitive use.” Additionally, some have  required 1,000 feet of distance. Also note that federal law  has enhanced criminal penalties for marijuana distribution  within 1,000 feet of schools. 

(3) Security plan: many applications require a detailed  security plan that shows alarms, personnel and strategy  relating to securing the premises for retail (dispensaries) or  cultivation operations. 

(4) Insurance: some applications will require that you  show proof of insurance for your operation. 

(5) Site plans: some applications will require you to hire  a civil engineer or architect to draw up site plans for your  cultivation operation. 

(6) Environmental impact / Waste management: some  applications will require a waste management plan and/ or statement of water usage and how potential adverse  consequences will be avoided. 

(7) Live Scan / Criminal History: Some jurisdictions will  require a live scan of the applicants and a disclosure of  any criminal history. Some have written the laws so that  you will only be disqualified if your prior criminal history  involves a crime of moral turpitude. Other regulations state  that past marijuana crimes will not count against you so  long as they were non-violent. However, check with your  local jurisdiction. 

(8) Tax Returns: some jurisdictions require prior tax returns  for the persons involved and the entity, if it has been in  operation in the past.