On March 23, 2018, the California Department of Public Health’s Manufactured Cannabis Safety Branch released proposed emergency regulations that would allow cannabis manufacturers to utilize “shared-use facilities”. The emergency regulations for “shared-use facilities” were expected to be filed with the Office of Administrative Law on April 3, 2018 and are expected to take effect on April 13, 2018. If approved, “shared-use facility” registrations and “Type S” license applications will be accepted.
If approved, a “shared-use facility” will be a manufacturing facility that allows other businesses to take turns using its space and equipment. The idea is similar to that of commercial kitchens and will allow a larger manufacturer to offer space and the use of equipment to smaller manufacturers. In order for a facility to be eligible, the “Primary Licensee” – the owner or operator of the “shared-use facility” – will first have to obtain its own Type 7, Type 6, or Type N manufacturing license and then register its facility as a “shared-use facility”. Once the “Primary Licensee” registers the facility, other cannabis manufacturers hoping to use the space, can apply for Type S licenses. “Type S Licensees” are cannabis manufacturers that work within the “shared-use facility”.
Type S Licensees can conduct the following cannabis manufacturing activities in the “shared-use facility”: (1) infusions, (2) packaging and labeling, and (3) extractions with butter or food grade oils (however, the extract or concentrate products can only be used in the Type S Licensee’s infused product – they cannot be sold to third party licensees).
There are many requirements that registered facilities, “Primary Licensees” and “Type S Licensees” will need to meet. The emergency regulations released by the California Department of Public Health’s Manufactured Cannabis Safety Branch and the corresponding fact sheet are available via the links provided here and by visiting the Department’s website.
If you have any questions about the California Department of Public Health’s Manufactured Cannabis Safety Branch’s emergency regulations or the proposed “Type S license”, please contact Rogoway Law Group.
