Cannabis Business Guide and Toolkit

Every business needs a name!

Businesses that do not include owner's name and portrays nature of business requires filing a fictitious business name statement with the Contra Costa County Clerk.
Link: www.ccclerkrec.us/clerk/clerk/fictitious-business-name/

Register with the state and federal government for a Federal Employer Identification Number (FEIN).
Businesses are required to file both State and federal tax returns.

Link: www.irs.gov/businesses/small-businesses-self-employed

Please note the following information when finding a location.

• Distance from Schools, Parks, Community Centers, Youth Center, Child-care center, or Nursery School
  • All commercial cannabis activity must be located a minimum of 1,500 feet from any public or private high school and a minimum of 600 feet from any public or private kindergarten, elementary, middle or junior high school that is in existence at the time the permit is issued.
  • All commercial cannabis activity shall be located a minimum of 600 feet from any park, community center, youth center, and public or private child-care center that is in existence at the time the permit is issued.
  • Following a public hearing, the Planning Commission may make exceptions to the distance requirements for all commercial activities if all of the following findings are made based on specific facts:
    • The location, design and proposed operating characteristics of the cannabis business is such that it is highly improbable that persons on, in or travelling to or from nearby parks, community centers, youth centers, or child-care centers would be able to view persons in, entering, or leaving the cannabis facility; and
    • Allowing the cannabis business to locate within 1,500 feet of a public or private high school or within 600 feet of a park, community center, youth center, and public or private child-care center, will not grant the cannabis business a special privilege not available to other commercial cannabis businesses within the City; and
    • The cannabis business has demonstrated that it considered other locations and selected the location that would have the least negative impact on the surrounding community while providing necessary services to its customers.
• Cultivators, Manufacturers, Mixed-light Cultivators, Testing Laboratories, and Distributors
  • All commercial cannabis cultivation, manufacturing, mixed-light cultivation, testing, and distributor operations shall be conditionally permitted as provided for in the City's Land Use Regulations Tables in Chapter 15.04.2
• Retail Facilities
  • Existing Retail Facilities 
    • Existing retail facilities may expand at their current location subject to Planning Commission approval of a modified CUP, upon making the following findings:
      • The retail facility has operated in compliance with all local and State regulations; and
      • The expanded use will not negatively impact the surrounding community.
  • New Retail Facilities
    • Any new commercial cannabis retail and non-storefront retail facilities are only allowed to locate in a CR, Regional Commercial Zoning District with a conditional use permit unless, following a public hearing, the Planning Commission makes all of the following findings to authorize a retail facility to locate on a site in the CG General Commercial Zoning District:
      • The retail facility has demonstrated that it considered locations within the CR District and found no location meeting the requirements of this section that serves the needs of its customers; and
      • The proposed location within the CG District would complement the surrounding community while providing necessary services to its customers; and
      • The proposed location is not abutting a residential use.

City of Richmond's Business License
All businesses / persons conducting business in Richmond are required to have a City of Richmond Business License. Learn more and apply at www.ci.richmond.ca.us/66/Business-Licenses

Zoning compliance is required for all, new, commercial business license applications. This is provided by city's Planning Division. Some Business Licenses will have to be approved by the Planning Division.

Cannabis business are Class L for City of Richmond's Business License. Businesses must pay an annual license tax of $50.00 for each $1,000.00 of gross receipts or fractional part thereof.

State of California Forms and Fees
Download forms at the Secretary of State website. Registration costs depend on your business type.
Sole Proprietorship or General Partnerships do not need to register with the state. Registering a business can take up to 4 weeks
Link: www.sos.ca.gov/business-programs/cannabizfile/cannabis-forms-and-fees/

If you hire employees, you must register with the State Employment Development Department, within 15 days after hiring. 
Website: edd.ca.gov/Payroll_Taxes/New_Hire_Reporting.htm

Check out the City of Richmond, Employment and Training Department for services for employers, training, and other resources. 
Website: www.ci.richmond.ca.us/275/Employment-Training

All commercial cannabis business shall provide maximum feasible opportunities for Richmond residents to apply for jobs through outreach, advertising, and contacts with local job centers. The City encourages "local hires" whenever possible, consistent with General Plan policies and State and federal employment law. Commercial cannabis businesses shall coordinate hiring opportunities with the City's Employment and Training Department.

Conditional Use Permit Applications. In addition to any application forms and fees required in accordance with Article 15.04.803, an application for a commercial cannabis business must provide specific information, as determined by the Zoning Director, based on this section, State law and regulations, and County input relative to edible cannabis products. This information includes, but is not limited to, the following:

• Requirements for All Commercial Cannabis Businesses. 

  • A commercial cannabis business is required to provide the following information in support of its permit application.
    • Information Regarding the Proposed Property.
      • The address of the property where the proposed commercial cannabis business will operate.
      • A site plan with fully dimensioned interior and exterior floor plans, including electrical, mechanical, plumbing, parking, and disabled access compliance pursuant to Title 24 of the State of California Code of Regulations and the federal Americans with Disabilities Act. For a retail facility, the site plan must show that there are separate rooms or partitioned areas within the retail facility for the receipt of supplies and for the delivery of cannabis to customers.
      • Exterior photographs of the entrance(s), exit(s), street frontage(s), parking, front, rear and side(s) of the site.
      • Photographs depicting the entire existing interior of buildings on the site.
      • If the site is being rented or leased or is being purchased under contract, a copy of such lease or contract.
      • If the site is being rented or leased, written proof that the property owner, and landlord if applicable, were given notice that the property will be used as a commercial cannabis business, and that the property owner, and landlord if applicable, agree(s) to said operations. If the retail facility is to be a subtenant, then "landlord" shall mean the primary tenant.
    • Information Regarding Each Business Owner and Manager. For each owner and manager, the following information must be provided, to the extent applicable:
      • The name, address, telephone number, title and function(s);
      • A fully legible copy of one valid government-issued form of photo identification, such as a driver's license; and
      • A summary criminal history ("LiveScan") prepared by the Richmond Police Department not more than 30 days prior to the date of application.
    • Information Regarding the Commercial Cannabis Business.
      • Written confirmation as to whether the commercial cannabis business, or a commercial cannabis business with one or more owner or managers in common with the applicant, previously operated in the City or any other county, city or state under a similar license/permit, and whether the business applicant ever had such a license/permit revoked or suspended and the reason(s) therefore.
      • The name and address of the commercial cannabis business' current Agent for Service of Process.
      • Information pertaining to a Notice of Violation for unpermitted cannabis operations or any cannabis related enforcement violations or within the City.
    • Plan for Unsold Cannabis. 
      • A plan for the disposal of any unsold cannabis or cannabis product must be submitted that renders or prevents any portion thereof from being recognizable and useable by any person or animal.
    • Neighborhood Responsibility Plan. 
      • A neighborhood responsibility plan that demonstrates how the business will fulfill its responsibilities to the neighborhood, including neighborhood outreach, methods for future communication, and dispute resolution.
    • Security Plan. 
      • A security plan indicating how the applicant will comply with the requirements of this section and any other applicable law, rule, or regulation.
    • Affirmation that the Application is True.
      •  A statement dated and signed by each management member, under penalty of perjury, that the management member has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the management member(s).

In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail facilities.

• Security Plan
  • A retail facility's security plan must include procedures for verifying identification of customers and primary caregivers both before entering the retail facility and again before receiving cannabis; the number, location and hours of security guards; and a theft prevention plan including a detailed description of all surveillance and video equipment, location and coverage of cameras and how law enforcement or their representatives will be given real-time and stored access.
• Daily Customer Limits
  • A retail facility or non-storefront facility shall adhere to daily limits on adult-use and medicinal cannabis and cannabis products by its customers in accordance to State law.

In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis manufacturing operations.

• Safety of Manufacturing Process
  • A commercial cannabis manufacturer must demonstrate one or both of the following:
    • The only manufacturing processes used are either solventless or employ only nonflammable, nontoxic solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
    • The manufacturing processes only use solvents exclusively within a closed-loop system that meets all of the following requirements:
      • The system uses only solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et seq.).
      • The system is designed to recapture and contain solvents during the manufacturing process and otherwise prevent the off-gassing of solvents into the atmosphere to mitigate the risks of ignition and explosion during the manufacturing process.
      • A licensed engineer certifies that the system was commercially manufactured, is safe for its intended use, and was built to codes of recognized and generally accepted good engineering practices, including, but not limited to, the American Society of Mechanical Engineers, the American National Standards Institute, Underwriters Laboratories, the American Society for Testing and Materials, or OSHA Nationally Recognized Testing Laboratories.
      • The system has a certification document that contains the signature and stamp of a professional engineer and the serial number of the extraction unit being certified and that the certification is renewed either annually or according to the manufacturer's recommendations.
• Fire, Safety, and Building Code Requirements
  • The manufacturer must meet all State, county and locally required fire, safety, and building code requirements.
• Approval from Richmond Fire Prevention Services Division or designee
  • The commercial cannabis manufacturer must receive and maintain approval from the Richmond Fire Prevention Services Division for the closed-loop system and for other equipment used for manufacturing and extraction operations, per guidelines adopted by the Richmond Fire Prevention Services Division.
• Edible Cannabis Products
  • Commercial cannabis manufacturers that prepare edible cannabis products must demonstrate compliance with State, County and local requirements regarding the preparation, distribution, labeling, and sale of food.

In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivation and manufacturing operations.

• Plans for Use of Renewable Electricity
  • All cultivation and manufacturing operations must submit detailed plans demonstrating that the electricity used in the cultivation and manufacturing operations is from a renewable energy source or arrangements have been made to offset use of nonrenewable electrical energy with renewable energy from another source. If written evidence of enrollment in the Deep Green 100 percent renewable energy program administered by Marin Clean Energy (MCE) is provided, no further details need to be submitted with the application. Enrollment shall be maintained, and evidence provided annually in order to renew CBP.
• Plans for Water Conservation. 
  • All cultivation and manufacturing operations must submit detailed plans demonstrating strict water conservation methods will be instituted and maintained at all times, and such plans must include records of monthly water consumption. These plans also must show that the cultivation facility will be equipped with water collection and filtration systems to reduce irrigation water to the maximum extent possible as determined by the Zoning Director or the State, if its regulations are more restrictive.
• Plans for Wastewater
  • All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City's wastewater system, as set forth in Richmond Municipal Code Chapter 12.18. This shall include the submittal of an Industrial User Permit Application (Baseline Monitoring Report) to the Water Resource Recovery Department.
• Plans for Stormwater
  • All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City's municipal separate storm sewer system (MS4), as set forth in Richmond Municipal Code Chapter 12.22. This shall include any and all provisions required under the Municipal Regional Permit (NPDES Permit No. CAS612008).
• Plans to Prevent Mold
  • All cultivation and manufacturing operations must submit a plan that specifies the methods to be used to prevent the growth of harmful mold.
• Ventilation Plan
  • All cultivation and manufacturing operations must submit detailed information about the proposed ventilation system, including technical specifications indicating that the system is capable of preventing the release into the atmosphere of cannabis odors from the cultivation or manufacturing operation.

Following the issuance of a Conditional Use Permit, a cannabis business is required to submit an application for a Cannabis Business Permit specific to the business activity defined by the State pertaining to that activity for any medicinal or adult-use or any other commercial cannabis activity the State may license. It shall be unlawful for any person to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a Cannabis Business Permit.

Visit this link to get the most updated information and contacts for the Cannabis Business Permit: https://www.ci.richmond.ca.us/4226/Cannabis-Business-Permit

Retailers, delivery, distributors, and testing laboratories can apply online at the Bureau of Cannabis Control website.

Manufacturers can apply online at the California Department of Public Health website.

Cultivators can apply online at the CalCannabis website.

Certain types of businesses or events may require permits from city, county, or state. Visit the tool www.calgold.ca.gov to find the appropriate permit information for your business! 

• City of Richmond Permits and Licenses:
  • Fire Department: Fire Safety Permit for hazardous materials
  • Police Department - Permits for selling Tobacco and Marijuana
  • Water Resource Recovery - Storm water permits
  • Planning/Building Division - Permit for improvements or construction to building and knowing your zonings
  • Engineering Division - Permit for improvements in a public right-of-way
    
    
• County Permits and Licenses:
  • CCC Health Services - Licenses and permits for businesses or entity that sells or gives food/beverages to the publics Board of Equalization - Seller's Permit Department of Alcoholic Beverage Control - Alcohol License Child Care State License Contractor State License
• State Permits and Licenses
  • Board of Equalization - Seller's Permit
  • Department of Alcoholic Beverage Control - Alcohol License
  • Child Care State License
  • Contractor State License

1. Application Fees. The applicant shall pay all fees required by the master fee schedule to cover the costs of processing commercial cannabis business permits, including but not limited to use, design review, building, fire, and CBP permits.
2. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all business taxes required by the City of Richmond Municipal Code, including but not limited to those due under Richmond Municipal Code Section 7.04.139.3.
3. Commercial Cannabis Regulatory Fee. The business owner shall pay an annual regulatory fee to cover the costs of anticipated enforcement and inspections relating to the cannabis operation. The amount of the fee shall be set by Resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation. The regulatory fee shall be due upon issuance of the CBP. The Regulatory Fee may be amended from time to time based upon actual costs.
4. All required taxes including sales and use taxes, business, payroll etc.
5. Additional cannabis-specific taxes approved by the voters of the City of Richmond