Regulatory Compliance

Regulatory Framework

Monterey Growers operates in full compliance with California's comprehensive cannabis regulatory system. We maintain active licenses, adhere to all testing requirements, and implement rigorous operational standards to ensure the safety and legality of our products.

1. State Licensing

1.1 California Department of Cannabis Control (DCC)

Monterey Growers holds an active Commercial Cannabis Cultivation License issued by the California Department of Cannabis Control. Our license permits us to:

• Cultivate cannabis for commercial purposes
• Supply licensed distributors and manufacturers
• Engage in wholesale cannabis commerce within California
• Maintain cultivation facilities meeting state safety standards

License Type: Medium Indoor Cultivation
License Number: [Your License Number]
Renewal Status: Active and in good standing
Annual Renewal: Completed annually with required fees and documentation

1.2 Local Permits

In addition to state licensing, we maintain all required local permits and approvals:

• County of Monterey cannabis business permit
• Local land use permits and zoning compliance
• Building and safety permits for cultivation facilities
• Fire and safety inspections (passed annually)
• Environmental health permits

2. Track-and-Trace Compliance (METRC)

2.1 California Cannabis Track-and-Trace System

All cannabis products at Monterey Growers are tracked through California's mandatory track-and-trace system, METRC (Marijuana Enforcement Tracking Reporting Compliance). This system provides:

• Seed-to-Sale Tracking: Every plant and batch is tagged and monitored from cultivation through distribution
• Real-Time Reporting: All movements, transfers, and sales are reported to the state
• Inventory Management: Comprehensive tracking of all cannabis inventory
• Chain of Custody: Complete documentation of product handling and transfers

2.2 UID Tagging

We use Unique Identifier (UID) tags for:

• Individual plants in vegetative and flowering stages
• Harvested batches and packages
• Product lots designated for distribution
• Transfer manifests for all outbound shipments

3. Product Testing Requirements

3.1 Third-Party Laboratory Testing

100% of our products undergo mandatory testing by California-licensed, independent testing laboratories before distribution. Tests include:

3.2 Certificate of Analysis (COA)

Every batch includes a Certificate of Analysis (COA) from a licensed testing lab, documenting:

• Laboratory name and license number
• Test results for all required categories
• Pass/fail status for each test
• Batch identification and sample date
• Lab technician signature and accreditation

Failed Batches: Any product that fails testing is immediately quarantined and destroyed according to DCC protocols. Failed batches are never sold or redistributed.

4. Operational Compliance

4.1 Security Requirements

• 24/7 Video Surveillance: All areas where cannabis is handled are under continuous video monitoring
• Restricted Access: Limited access areas with electronic locks and access logs
• Alarm Systems: Commercial-grade security systems with state agency notification
• Background Checks: All employees undergo background checks as required by DCC
• Inventory Audits: Regular inventory reconciliation and variance reporting

4.2 Packaging and Labeling

All products distributed by Monterey Growers comply with California packaging and labeling requirements:

• Child-Resistant Packaging: All products in child-resistant, tamper-evident packaging
• Required Label Elements:
  • THC and CBD content (mg and percentage)
  • Government warning statements
  • UID and batch number
  • Manufacturing and expiration dates
  • Net weight or volume
  • List of ingredients (if applicable)
  • Distributor and manufacturer information
• No False Claims: Labels contain no health claims or misleading information
• Universal Symbol: California cannabis universal symbol displayed prominently

4.3 Transportation and Distribution

Monterey Growers works exclusively with licensed cannabis distributors for product transportation:

• All transfers documented through METRC
• Distribution manifests for every shipment
• GPS tracking of transport vehicles
• Licensed drivers with required training
• No transport across state lines

5. Environmental and Sustainability Compliance

5.1 Water and Energy Regulations

• Water Rights: Compliance with California water use regulations and reporting
• Energy Efficiency: Use of energy-efficient lighting and climate control systems
• Waste Management: Proper disposal of cannabis waste per DCC guidelines
• Pesticide Compliance: Use only of approved pesticides and fertilizers listed by DCC

5.2 Environmental Permits

• California Environmental Quality Act (CEQA) compliance
• Regional Water Quality Control Board permits
• Air quality permits (if applicable)
• Hazardous waste handling permits

6. Employee and Workplace Compliance

6.1 Employee Requirements

• Age Requirement: All employees must be 21 years of age or older
• Background Checks: Fingerprinting and criminal background checks for all owners and employees
• Training: Comprehensive training on cannabis regulations, safety, and quality control
• Track-and-Trace Training: METRC system training for all staff handling product

6.2 Workplace Safety

• Cal/OSHA compliance for workplace safety
• Personal protective equipment (PPE) requirements
• Safe handling procedures for cultivation inputs
• Emergency response protocols

7. Tax Compliance

7.1 California Cannabis Taxes

Monterey Growers complies with all applicable cannabis taxation:

• Cannabis Excise Tax: 15% excise tax on retail sales (collected through distribution chain)
• Cultivation Tax: Per-ounce tax on harvested cannabis (paid by cultivator)
• Sales Tax: Standard California sales and use tax
• Federal Income Tax: IRS Section 280E compliance (limited deductions for cannabis businesses)

7.2 Tax Reporting

• Quarterly tax returns to California Department of Tax and Fee Administration (CDTFA)
• Annual federal tax filing under IRS regulations
• Maintenance of detailed financial records

8. Record Keeping and Audits

8.1 Required Records

California law requires cannabis businesses to maintain extensive records for a minimum of 7 years:

• Financial records (invoices, receipts, bank statements)
• Inventory records (METRC reports, transfer manifests)
• Employee records (payroll, training, background checks)
• Testing results (COAs for all batches)
• Security records (video footage, access logs)
• License applications and renewal documentation

8.2 Regulatory Inspections

We cooperate fully with inspections by:

• California Department of Cannabis Control (DCC)
• County and local enforcement agencies
• California Department of Food and Agriculture (CDFA)
• Cal/OSHA
• California Department of Tax and Fee Administration (CDTFA)

9. Federal Law Considerations

9.1 Federal-State Legal Conflict

While cannabis is legal in California, it remains a Schedule I controlled substance under the federal Controlled Substances Act. Monterey Growers acknowledges this legal conflict and operates exclusively within California state law, with the following understanding:

• Federal enforcement priorities may change
• Interstate commerce remains prohibited
• Banking and financial services are limited
• Federal tax deductions are restricted (IRC 280E)

9.2 Cole Memorandum Principles

We adhere to principles outlined in federal guidance to minimize federal enforcement risk:

• Preventing distribution to minors (21+ only)
• Preventing revenue to criminal enterprises
• Preventing diversion to states where cannabis is illegal
• Preventing violence and firearms in cultivation
• Preventing impaired driving
• Preventing cultivation on public lands

10. Ongoing Compliance Commitment

Monterey Growers is committed to maintaining the highest standards of regulatory compliance. Our ongoing compliance efforts include:

• Compliance Officer: Dedicated staff member responsible for regulatory oversight
• Regular Training: Ongoing employee education on regulatory changes
• Internal Audits: Quarterly compliance audits and corrective action plans
• Legal Consultation: Access to cannabis legal experts and regulatory advisors
• Industry Participation: Active membership in cannabis industry associations
• Policy Updates: Regular review and updates to standard operating procedures

11. Reporting Violations

If you have concerns about regulatory compliance at Monterey Growers, please contact us:

Compliance Team
Email: info@MontereyGrowers.com

You may also report concerns directly to the California Department of Cannabis Control:

California DCC
Website: cannabis.ca.gov
Phone: (844) 61-CA-DCC