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.