Section 22120 - Application for Registration of Manufacturers(a) Each applicant must provide all requested information on the application to be approved by the department.(b) At a minimum, each applicant must provide the following information: (1) The OCal certification number issued to the firm and a copy of the OCal certification document pursuant to Section 22115, if applicable;(2) The cannabis license number and expiration date issued to the firm by the cannabis licensing authority and a copy of the cannabis license pursuant to Section 22115;(3) For renewal applications only, the total annual OCal gross revenue received from manufacturing OCal cannabis products in dollars, for the previous 12 months;(4) For renewal applications only, the quantity (in pounds) of all finished cannabis products sold as OCal by product type (commodity) as determined by the department for the previous 12 months; and(5) Documents requested by the department or supplied by the applicant under paragraphs (3) and (4) above must be marked "confidential financial documents" by the applicant.(c) A registration application must be accompanied by payment of a nonrefundable registration fee payable to the department. The fee must be based on annual gross revenue of OCal product received from manufacturing by the registrant in the calendar year that precedes the date of registration. (1) New applicants will pay $350 for the first year of registration. Renewal fees will be based on annual gross revenue and the fee schedule in this section.(2) For a manufacturer licensee that is also licensed as a distributor or retailer by the cannabis licensing authority, and that sells or transfers cannabis products manufactured on the licensed premises in a non-arm's length transaction, the annual gross revenue for such transactions must be based on the product's fair market value if it were to be sold in an arm's length transaction at wholesale.(3) For purposes of this section, an "arm's length transaction" means a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction. The fee is based according to the following schedule:
| New Applicants | $350 |
| |
| Renewal Applicants | |
| Gross Annual Revenue | Annual Registration Fee |
| $0-$5,000 | $50 |
| $5,001-$50,000 | $100 |
| $50,001-$125,000 | $200 |
| $125,001-$500,000 | $300 |
| $500,001-$1,500,000 | $400 |
| $1,500,001-$2,500,000 | $600 |
| $2,500,001-and above | $700 |
(d) Fees may be adjusted annually by the percentage change printed in the Budget Act for those items appropriating funds to the state department. After the first annual adjustment of fees or charges pursuant to this section, the fees, or charges subject to subsequent adjustment must be the fees or charges for the prior calendar year. The percentage change must be determined by the Department of Finance and must include at least the total percentage change in salaries and operating expenses of the state department. However, the total increase in amounts collected under this section must not exceed the total increased cost of the program or service provided.(e) An approved registration is considered legal and valid until revoked, suspended, or until the expiration of the registration.(f) A registration under this section is not transferrable to any other entity, licensee, address, or location.(g) Any change that requires a new license under Division 10 of the Business and Professions Code will require the applicant to submit a new application and registration fees required under this Subchapter.(h) The applicant must immediately notify the department of any change in the information reported on an application form.(i) Any manufacturer required to be registered by the department under this Subchapter that does not pay the registration fee required by section will be considered as having an incomplete application and is not authorized to manufacture under this Subchapter and is subject to fines and/or penalties under this Subchapter.(j) If at any time the manufacturer does not possess valid, current cannabis licenses issued by the cannabis licensing authority pursuant to Division 10 of Business and Professions Code or does not possess an active and valid OCal certification pursuant to Section 22115: (1) If there has been no determination on the initial application, the application is considered immediately denied unless the manufacturer elects to withdraw the application, or(2) If there has been a determination by the department on the initial application, the application will be considered immediately suspended.Cal. Code Regs. Tit. 17, § 22120
1. New section filed 7-1-2021 pursuant to Government Code section 11343.8; operative 7-1-2021. Submitted to OAL for filing and printing only pursuant to Business and Professions Code section 26062(a)(2) (Register 2021, No. 27). Note: Authority cited: Sections 100275, 110065, 110835 and 113115, Health and Safety Code; and Section 26062(a)(2), Business and Professions Code. Reference: Section 26062.5, Business and Professions Code.
1. New section filed 7-1-2021 pursuant to Government Code section 11343.8; operative 7/1/2021. Submitted to OAL for filing and printing only pursuant to Business and Professions Code section 26062(a)(2) (Register 2021, No. 27).