What do the regulations mean for cannabis clone purchases?

Navigating the California cannabis regulations in this post-prohibition era can be challenging, especially when figuring out which rules apply to you. We thought we could alleviate some of that stress by explaining how these regulations impact customers, patients, and businesses who want to purchase clones.

 

HOW TO PURCHASE CLONES DIRECTLY FROM DARK HEART NURSERY

You must possess a California State Permit (Temporary Permits are accepted) for cannabis cultivation, retail, microbusiness, or distribution. Compliance requires us to have a photo of your CA ID as well as a PDF of your California State Permit in order to generate an order. If you are a re-seller, exempt from tax, you must provide us with a Seller’s Permit and fill out a general resale form. Unless you have a distribution license, Dark Heart is required by California state law to deliver your clone order directly to the business address listed on your permit. Those with a distribution license have the option of picking up their order from Dark Heart’s facility in Oakland.

To get the order process started you must fill out the form on the Direct Order Link. If you are qualified for ordering you will receive an email requesting some additional information. Please reply with that info as soon as possible. Once we receive that information, a Sales Rep will reach out to you. We appreciate your patience through this final step as we do receive a large number of order requests.

If you do not meet the qualifications for direct ordering, see the next section below for other ways to obtain our clones.

 

AMOUNT OF CLONES THAT CAN BE PURCHASED AT DISPENSARY/RETAIL LOCATION

As of January 1, 2018 dispensaries selling cannabis products have the choice to apply for medical licensing, adult-use licensing, or both. With these permits come different protocol when it comes to purchasing, which we explain below.

  • Adult-use customer stem limit: 6 per day
  • Medical patient stem limit: 12 per day (must possess a doctor’s recommendation or county medical card for cannabis)

If a retail location only has a medical license and no adult-use license, it can only allow patients who have a county medical card for cannabis or a doctor’s recommendation for cannabis into the store.

To receive up to 99 clones in a single day from a retail location with a state medical permit, your doctor’s recommendation or county medical card must CLEARLY state that you are allowed a higher number than 12 clones per day. You are only allowed up to the number stated on your recommendation or medical card.

 

SERVICES DARK HEART OFFERS FOR RETAIL CLONE SALES

When hunting for the Dark Heart Nursery clone strain(s) that work best for your grow, it is always best to start by exploring our interactive Strain Catalog. Here you can filter your search by flower time, yield, strain category (Hybrid, Sativa, Indica), and grow difficulty level. We carry a wide range of strains on our menu to suit the needs of our vast grower community here in California.

Once you decide on the strain(s) you are interested in, we have a couple methods for obtaining our clones through retail locations. The first method is to sign up for our Clone Drop alert system which will send you notifications when the strains you select are available at the retail locations of your choice. The system will notify you by email when these clone drops occur.

For medical patients, we offer a Pre-Order Service at three of our medical retail partner locations: Harborside in Oakland, OrganiCann in Santa Rosa, and River City Phoenix in Sacramento. When you sign up for pre-order at any or all of these retail locations you will receive a text message when a menu is available for ordering. Select the clones you want and submit your desired order for approval. A confirmation email will be sent letting you know when your order will be available for pickup. Patients are limited to 12 clones a day on pre-order unless they possess a doctor’s recommendation or a county medical card for cannabis that CLEARLY states they are allowed a number higher than 12 clones in a given day. If you order more than 12 clones at a time, a sales rep from Dark Heart will reach out to you directly regarding your documentation proving your ability to purchase more clones. Once the documentation is verified, the sales rep will confirm your order.

 

WHERE CANNABIS REGULATION INFORMATION CAN BE FOUND

Multiple government agencies have been placed in charge of regulating the different aspects of the cannabis industry in California. The Bureau of Cannabis Control (BCC) is in charge of issuing licenses to distributors, retailers, testing labs, and microbusinesses. The California Department of Food and Agriculture (CDFA) is in charge of California Cannabis Cultivation Licensing and handles all items relating to cannabis cultivators. Lastly, the California Department of Public Health houses the Manufactured Cannabis Safety Branch (MCSB) and handles businesses who manufacture cannabis. Information about local cannabis compliance can be found at your local/county government agency’s website.

 

TYPES OF STATE LICENSES THAT DARK HEART CAN SELL TO

Every license must designate whether it is Medical (M) or Adult-Use (A). Businesses are allowed to apply for both license types with separate applications and fees.

Retail License: This type of license is regulated by the BCC and can either be a storefront with permission to deliver cannabis goods to customers or a non-storefront type license that allows delivery only.

Distribution License: This type of license is regulated by the BCC. With this license distributors can transport cannabis goods between cannabis businesses.

Cultivation License: This type of license is regulated by the CDFA and is intended for cannabis cultivation to produce flowers, pre-rolls, keif, and other nonmanufactured cannabis goods. There are numerous licenses available within this category so it is best to do more research to decide which one is the best for your business.

Microbusiness: This license type is regulated by the BCC and is for small businesses who engage in at least three of the four following business activities: cultivation (under 10,000 sq ft), manufacturing, distribution, and retail.

 

THE DIFFERENCE BETWEEN A TEMPORARY STATE PERMIT AND AN ANNUAL STATE LICENSE 

As of January 1, 2018, the temporary permit became available to individuals/businesses wanting to conduct business in the California cannabis industry. The temporary permit requires basic business information and local government approval to operate. There is no fee for a temporary permit. The temporary permit is only good for 120 days from issuance, with the potential of a 90-day extension based on authority’s discretion. Rather than using a track-and-trace system, temporary license holders are only required to record cannabis activities on paper receipts, invoices on manifests. The temporary licensing period is between January 1 – July 1, 2018.

The annual licensing application requires a lot more information than the temporary and requires a fee. Each cannabis licensing authority (BCC, CDFA, MCSB) has a distinct fee structure for their department. Keep in mind that once you are issued your annual license you must implement the state track-and-trace program. There are companies that offer services to help you complete the annual license application process. One company we recommend is the Cannabis Consulting Company.

 

BUSINESSES ALLOWED TO PICK UP THEIR ORDER FROM OUR NURSERY

When it comes to purchasing an order directly through our nursery, only microbusiness license holders and distribution license holders can pick up their clone order from our business address. California law requires that we deliver clone orders directly to the business address listed for all other license types purchasing directly from Dark Heart. We are allowed to deliver these orders because we possess a distribution license. We charge a delivery fee based on the distance from our nursery in Oakland.

 

TAXES DARK HEART MAY CHARGE ON A DIRECT ORDER

Excise Tax: This tax is collected by Dark Heart from retailers/dispensaries at the point of sale and/or transport of cannabis/cannabis products to the retail location.

Oakland Adult-Use: If a cannabis transaction occurs within the city of Oakland, and is designated for Adult-Use, rather than Medical, the business/person receiving the cannabis goods must pay this tax. A reseller permit does not make a business exempt from this tax.

Oakland Sales Tax: This tax is collected by Dark Heart at the point of sale from the business purchasing the clones as a result of the transaction occurring with a business located in the city of Oakland. If the purchasing business has a re-seller permit they are exempt from this tax.

 

ADDITIONAL INFORMATION

To stay on top of the California Cannabis Regulations and to ensure that you are compliant with all current laws relating to your business it is important to utilize the resources provided to you by the government agency that regulates your sector of the industry. It doesn’t hurt to follow this government agency on their social sites to get frequent updates on what is going within their agency.
As a customer, it is also important to understand the regulations that affect you and the businesses that are servicing you. Consumer information can be found on the Bureau of Cannabis Control website in the Consumer Information section.

 

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