COVID-19 Update: Additional License Fee Deferral Eligibility

June 29, 2020

NEWS & UPDATES

MANUFACTURED CANNABIS SAFETY BRANCH

STATE CANNABIS LICENSING AUTHORITIES EXPAND ELIGIBILITY FOR LICENSE FEE DEFERRALS

The three state cannabis licensing authorities announced today that businesses with state cannabis licenses expiring between July 1 and August 31, 2020, may request 60-day deferrals of their license fee payments. This expands eligibility for financial relief for businesses affected by COVID-19.

The license fee deferrals are intended to provide immediate financial assistance to state cannabis licensees impacted by COVID-19. Licensees must submit a written Request for Regulatory Relief to be considered for a license fee deferral. We will begin accepting requests for those newly eligible immediately.

License fee deferrals were first offered to businesses with license expiration dates between May 14 and June 30, 2020. Licensees that have been granted deferrals are not eligible to receive additional deferrals.

License Fee Deferrals

Licensee fee deferrals may be requested by licensees with an expiration date between May 14 and August 31, 2020. If you qualify for and wish to request a license fee deferral, please submit your request as soon as possible prior to your expiration date to avoid a lapse in licensure. Refunds are not available for fees that have already been paid.

An active license is required to conduct commercial cannabis activity. If your license expires before you request a fee deferral, you must cease operations. To ensure requests are processed in a timely manner, please submit requests no later than three weeks after your expiration date.

How to Request a License Fee Deferral:

Compile the information needed for review of your request. You can use this optional Request for Regulatory Relief form, which will assist you with providing the information required for review and allow us to quickly process your request. If you prefer not to use the form, you can type the information requested in the form directly into an email.
Email your Request for Regulatory Relief to MCLS@cdph.ca.gov. The request must be submitted by an owner of the business who is disclosed on the license.

If granted a deferral, the new deadline for license fee payment will be 60 days from the date of the license expiration.

How to Pay a Deferred License Fee:

10 days prior to your new due date your license fee will be added to your MCLS account and you will receive a payment reminder email from our licensing team.
To pay your fee, access your MCLS account and follow these instructions to make a payment.

Non-Cannabis Hand Sanitizer Production

We have heard from cannabis manufacturers who wish to support their community’s response to COVID-19 by producing non-cannabis hand sanitizer. Hand sanitizer is classified as an over-the-counter drug, and in California, its production requires drug manufacturer registration with the California Food & Drug Branch. An Executive Order was recently signed creating a temporary drug manufacturing registration process for those who wish to make hand sanitizer during the pandemic. This means we can now accept Requests for Regulatory Relief from cannabis manufacturers who wish to produce non-cannabis hand sanitizer.

How to Request Authorization to Produce Hand Sanitizer:

Complete a Request for Regulatory Relief Form to request a relief from section 40175(a), which restricts cannabis manufacturers from making non-cannabis products on their premises.
Submit your completed form to MCSB@cdph.ca.gov. If you prefer not to use the form, you can type the information requested in the form directly into an email.
Receive a response from MCSB. We will email you with an approval or denial of your request.
If approved, we will direct you to the California Food & Drug Branch to complete the temporary drug manufacturing registration. The form that they will ask you to complete can be found on their website (here).

Other Requests for Regulatory Relief

In addition to this financial relief, we are also accepting disaster relief requests from licensees who are unable to comply with a regulatory requirement due to the pandemic. For more information, review section 40182 of the r egulations .

To submit a Request for Regulatory Relief, follow the instructions included on the guidance document " How to Request Regulatory Relief ," and email your request to MCSB@cdph.ca.gov . You must specify the section of regulation for which you are requesting relief, explain why this relief is needed and how the need is related to the pandemic.

Additional Resources

Cannabis businesses may be eligible for tax assistance offered by the California Department of Tax & Fee Administration and the Franchise Tax Board. For more information on tax relief and for other small business resources, visit the State of California’s COVID-19 Response website.

ABOUT THE MANUFACTURED CANNABIS SAFETY BRANCH

The California Department of Public Health’s Manufactured Cannabis Safety Branch (MCSB) is one of three state licensing authorities charged with oversight of commercial cannabis activity in California. MCSB is responsible for licensing and regulating cannabis manufacturers and for establishing statewide standards for packaging and labeling of cannabis and cannabis products.

MCSB strives to protect public health and safety by ensuring commercial cannabis manufacturers operate safe, sanitary workplaces and follow good manufacturing practices to produce products that are free of contaminants, meet product guidelines and are properly packaged and labeled.