At Manzuri Law, our California cannabis attorneys have helped local businesses procure and maintain over 300 licenses over the past decade — including Type 12 licenses, also known as specialized microbusiness licenses or permits.
Type 12 licenses allow a California cannabis business to engage in three out of the four major permit areas, including cultivating, manufacturing, distributing, and retailing. However, there are specific requirements and limitations governing microbusiness activities that a licensee needs to follow. In addition, there is a robust application process which requires local approvals from the city and county in which the microbusiness is located.
Here is what prospective California cannabis microbusiness operators need to know.
What Type of Operations Does a California Cannabis Microbusiness Allow?
A microbusiness license is a strategic option for cannabis entrepreneurs who want to control the operational process, from cultivation through retail sale.
Under the rules issued by California Department of Cannabis Control, a microbusiness license requires the operator to perform at least three of the following four activities at one location:
- Cultivation maximum up to 10,000 total square feet.
- Distribution or distribution transport-only.
- Manufacturing use of non-volatile solvents, mechanical extraction, or infusion.
- Retail, either storefront or non-storefront.
Microbusiness licenses provide a streamlined application process. Instead of applying for multiple licenses to engage in multiple operation types, applicants are only required to submit a single consolidated microbusiness application.
Microbusiness license applicants must comply with regulations adopted by the California Department of Food and Agriculture (CDFA), the California Department of Public Health (CDPH), and other state and local agencies governing the specific activities they are involved in. Considering this web of regulations, it is important to meet with an experienced cannabis attorney to ensure your application is strategically prepared.
Additional regulations must be followed based on the type of operations a microbusiness engages in. For example, there are numerous requirements which govern issues like inventory storage, recordkeeping, security, employee badges and surveillance, and the Track-and-Trace program. Because a Type 12 license includes multiple operational activities, microbusinesses have more regulations to follow than a single activity commercial cannabis licensee.
In sum, a microbusiness license can offer cannabis entrepreneurs more operational control through a simplified application process. Although there are many limitations and regulations that govern the operation of a microbusiness. Before applying for a microbusiness license, you should determine whether the license type is aligned with your unique goals.
This is where our California cannabis lawyers shine. At Manzuri Law, our cannabis attorneys offer end-to-end legal solutions for licensing and compliance to streamline the process, so our clients can begin operations sooner.
Contact us today by phone at (310) 912-2960 or online to learn more about how we can help you pursue the proper business formation and navigate the licensing and permitting stages through ongoing compliance and security measures.