Here's our old cannabis business presentation. The state added new regulations for the cannabis industry. http://420college.org

1. 420 College

2. Presented by
Education | Licensing | Management
420 College has been serving the cannabis entrepreneurs since 2009. Having more than 30,000
cannabis business people come through cannabis school doors to get educated on starting and
operating any type of cannabis business.
Are you ready to enter the cannabis industry? Get started today, check out our cannabis business
seminars and the many other ways we can help you get your cannabis business started and set
for success.

3. Disclaimer
● The following presentation and materials provided therein is not legal advice but information solely
for the purpose of informing you on current laws regulating cannabis in the state of California. The
information pertaining to cannabis law in California is solely intended to provide you with greater
knowledge on the state of cannabis law within the borders of California. Legal advice, which is the
application of law to an individual's specific circumstances, is not being provided in any manner.
Only a California Bar certified attorneys may give legal advice. 420 College, and the provided
information about the medical cannabis industry, regulations guiding the industry and associated
state programs and agencies is designed to help the reader safely and accurately assess their need
to pursue legal counsel. Though we strive to maintain the most accurate legal information, we
recommend that you seek legal counsel if you desire more specific legal guidance on a matter that
pertains to your personal needs.
● Be aware that possessing, using, distributing, cultivating and selling cannabis are all Federal crimes
and no legal information provided within this book complies with Federal law. 420 College does not
promote, endorse or encourage illegal sales or use of marijuana in any way.
PLEASE NOTE:
Cannabis in virtually all forms remains illegal under Federal law and is considered a Schedule I drug. Anyone caught with cannabis in Federal jurisdictions including
buildings, parks, facilities or other designated Federal properties can face criminal charges.
Shipping cannabis through USPS Mail, UPS or FedEx is strictly prohibited and subject to Federal prosecution.
Anyone found to be out of compliance with Proposition 215, SB420, and California Attorney General’s Guidelines in the state of California & California Health & Safety Code
11362.775 & in possession or distribution of medical marijuana without proper authorization, can face criminal charges.

4. Legal Statement
● 420 College courses, guides, seminars, materials and consulting do not encourage readers to
break, transgress, aid in the violation of any laws or propagate and/or foster any activities deemed
to be Federally illegal or in violation of the laws, regulations or ordinances of any states,
commonwealths, districts, counties, parishes, cities or municipalities wherein they are presented
to the reader.
● 420 College courses, guides, seminars, materials and consulting are presented with the sole
purpose of educating consenting adults on the most recent and relevant facts relating to medical
cannabis, laws relating to medical cannabis, case law and court precedents on medical cannabis
and other information provided by the judicial system to guide the safe and compliant operation of
cannabis businesses in their respective jurisdictions.
● 420 College participants agree to take full responsibility for any actions deemed to be out of
compliance with local or Federal law and hereby release 420 College of any legal liability from any
local, State or Federal legal violations the participant may be engaged in.
● 420 College, its instructors, lawyers, presenters, employees and others affiliated with the 420
College network do not accept responsibility for participants using the information contained
herein to engage in any illegal activities and are hereby held harmless should the participant
choose to act or conduct themselves, their businesses or their activities in a manner inconsistent
with all local, State and Federal laws.

5. Marijuana Regulation: Federal Position
Statutory position
● Controlled Substances Act: (CSA) Title II of the Comprehensive Drug Abuse Prevention
and Control Act of 1970:
○ Under the Controlled Substances Act, marijuana is a schedule I drug. That classification
declares, marijuana “has a high potential for abuse…has no currently accepted medical use
in treatment in the United States [and] there is a lack of accepted safety for use of the drug or
other substance under medical supervision” [21 U.S.C 812(b)(1)]
● Any marijuana possession, cultivation, or use is a federal crime, subjecting a defendant to
fines, prison time, or both. Large-scale cultivation and trafficking (transporting or selling marijuana,
often across state lines) incurs harsher penalties.
● The CSA draws no distinction between medical and recreational use, and includes additional
provisions which incorporate: transportation, paraphernalia, manufacturing processes, related
financial activities, aiding and abetting prohibited acts into the statutory prohibition.

6. Marijuana Regulation: Federal Position

7. California Cannabis Timeline
● 1996- Proposition 215, or Compassionate Use Act, passes with 55.58% of the vote.
● 2003- SB 420 passes and requires Attorney General to issue guidelines for MMJ
● 2004-SB 420 active Jan. 1, 2004, begins State MMP Act measures
● 2007- CA Board of Equalization issues Special Notice
● 2008- Attorney General Jerry Brown issues Attorney General Guidelines per SB420
● 2015- MMRSA- Medical Marijuana Regulation Safety Act.
● 2016- Adult Use of Marijuana Act, or Proposition 64, approved in November 2016
MCRSA-Medical Cannabis Regulation and Safety Act.
● 2017- MAUCRSA Passes, Combining MCRSA & AUMA per SB 94
● 2018- MAUCRSA Licensing and Regulations Effective Jan. 1, 2018

8. M.A.U.C.R.S.A.
In the summer of, 2017, the California Legislature voted to adopt Senate Bill 94, and incorporated into
California law the Medicinal and Adult-Use Cannabis Regulation and Safety Act, (“MAUCRSA”). The
highly anticipated act, combines features of the previously accepted, MCRSA related to medical
cannabis regulation, and AUMA, related to adult recreational cannabis. MAUCRSA presents a
comprehensive set of codes, which will provide the regulatory framework for medical and recreational
cannabis at state level.
What does MAUCRSA do?
● Amends and references previously
codified sections of:
■ CA Health and Safety Code;
■ CA Business & Professions Code;
■ CA Penal Code;
■ CA Government Code;
■ CA Civil Code;
■ CA Revenue & Taxation Code;
■ CA Transportation Code;
■ CA Fish & Game Code, etc.
● Provides a regulatory framework:
○ Details Regulations for Commercial
Cannabis Applications and Operations;
○ Redefines Non-Profit Activities under
the Compassionate Use Act.
● Creates Governmental Authority
○ Delegates regulatory tasks to multiple
departments;
○ Provides framework for enforcement;
○ Presents clearly defined rules for
taxation.

9. What does regulation look like

10. M.A.U.C.R.S.A. & Commercial Cannabis
The Role of Local Government
● The provisions of MAUCRSA, afford substantial latitude to local government for the regulation of
commercial cannabis activities. Local jurisdictions (city or county), maintain the authority to: ban,
place moratoriums, restrict, or allow commercial cannabis activities. Cities and counties have the
authority to draft independent regulations for marijuana-based businesses before January 1, 2018.
Jurisdictions which have not banned, regulated, or requested leave for more time to do so, prior to
the first of the year, will accept the default regulations as set forth by the state.
● Local ordinances must meet or exceed the standards set by the state of California under
MAUCRSA. Cities and counties may, within their authority, draft regulations that are more
restrictive than those of MAUCRSA, but may not draft regulations which are less restrictive than
those of MAUCRSA.
● Although licenses under MAUCRSA will not be available to applicants until after the first of
January, 2018, it is possible to operate provisionally in local jurisdictions which have regulations in
place. In order to commence commercial activities for marijuana business activities in an open
jurisdiction, one must obtain a permit, license, or other regulated authority from the local
jurisdiction, operate compliantly during the provisional period, and submit an application for a state
license no later than July 1, 2018.

11. MAUCRSA License Overview:
● Dual License Structure for Canna-Business
■ Obtain Authorization from local jurisdiction to operate;
■ Apply for Marijuana Business License through the state of California (01/01/18).
● MAUCRSA License Categories
■ Cultivation
■ Distribution
■ Manufacturing
■ Retail
■ Testing
■ Micro business
■ Processing
■ Packaging
■ Storage
■ Cannabis events
■ Transportation
M.A.U.C.R.S.A. & Commercial Cannabis
MAUCRSA provides a hybrid of licenses proposed under MCRSA and AUMA.
The limitations on vertical integration have been nearly eliminated, and the role of
other licenses have expanded to include the role of the transportation, which was
previously proposed as an independent license category. Under MAUCRSA,
applicants may generally apply for, and hold licenses in multiple categories. The
only stand-alone license category under MAUCRSA is that of Testing. No
applicant for any other category may hold a financial interest in, nor be an
employee of, a MAUCRSA Licensed Testing Facility. Additional license
categories under MAUCRSA will be available in 2023, including large-scale
cultivation and microbusiness.

12. M.A.U.C.R.S.A. – Business Operations
The compliant cannabis industry in California offers entrepreneurs an exciting opportunity to
participate in a dynamic and challenging climate. With careful research, focus on compliance, and
dedication to safe and secure operation, canna-business professionals face a horizon of virtually
limitless potential. The following are important notes about recent updates to the California legal
framework which will aid in compliant operations.
• What can I do to plan for compliant operations?
– Stick to the Plan!
• Follow your detailed Business Plan in SOPs,
Training Programs, and Internal Audits.
• Ask for input from your local jurisdiction, and
update your licensing authority with changes.
• Keep up-to-date with the changes in laws and
best business practices.
– Advertise Responsibly!
• Consult the Business & Professions Code and
local regulations for guidance.
• Beyond the regulations, focus on discretion,
professionalism, and safety.
– Pay your Taxes!
• Retailers: 15% of average market price of each
retail sale.
• Cultivators:
• FLOWER: $9.25 per dry-weight ounce;
• LEAF: $2.75 per dry-weight ounce.
– Get Support!
• Financial Professionals
• Compliance and Legal Consultants
• Industry Specialists
– Be Involved!
• Designate a Community Relations Liaison;
• Form alliances with other business leaders to
maximize community impact;
• Attend meetings, seminars, workshops, and
festivals for the industry.

13. New Collective Guidelines
Collectives are still allowed to exist but in a very different and incredibly limited context in comparison
to the current (pre-2018) system in place. This also applies to the new legal interpretation of primary
caregivers under Proposition 215 and SB 420:
COLLECTIVE REGULATIONS:
• B&P Code § 19319(b) – no state license is required for caregiver who cultivates, possesses,
stores, manufactures, transports, donates, or provides cannabis for no more than five qualified
patients and who does not receive payment except for reimbursement of actual costs.
• Amend the MMP by adding Health and Safety Code § 11362.777 regarding cultivation and deleting
§ 11362.775(a) regarding criminal immunity for collective and cooperative cultivation.
• H&S Code § 11362.777(g) – no state cultivation license is required if the cultivation area is 500
square feet or less, cultivation is for no more than five qualified patients, and caregiver does not
receive payment except for reimbursement of actual costs.

14. What is required
● Proof of Capitalization
○ Financials and Pro Formas for Years 1 to 3
○ Clean Background Check(preferred)
○ Business Operational Plan
■ Site Specific Safety Plan
Building permits
Security Plan
Environmental/Sustainability Plan
Site Plan, Site Preparations, Floor Plans, Blueprints
Employee Relations Plan
Community Benefit Plan
● Compliance Statement for Non-Diversion of Cannabis
○ Indemnification Statements
● Proof of Property Ownership/Land lord Affidavit and Zoning Verification
And more, depending on your licensing jurisdiction…

16. What’s the deal?
Virtually every application is different but have similar components. Application fees can range from
$400.00 to $160,000.00, depending on location & license type.
What can I expect?
This isn’t an easy process and it is highly competitive since state licenses won’t be issued until 2018.
Patience is a virtue in pursuing a local license right now unless you have the capital to move quickly
and strategically.
Is the process worth it
That’s up to you – just know that you will be spending a substantial amount of capital before you start
generating revenue.
What city/county will open up next?
Unless you’re paying an attorney, researcher or consultant to follow every development statewide,
start your own research immediately.

17. What are some common issues?
City or County Bans and Moratoriums
Limited opportunities to apply in cities and counties across the state creates a highly competitive
environment for applicants.
Budgetary Limitations
Identifying the right partnerships is critical to pooling the needed resources to mobilize for a licensing
application.
Property Zoning or Availability
Is your property in the correct zoning area? Do you even have a property in mind? Are you planning to
lease or buy? If so, does your landlord know and consent to what you’re doing?
Limited Cannabis Experience
Your cannabis business expertise is limited and you don’t have the insider knowledge to launch.
The Right People in the Right Place
Have you hired the right cannabis consultant who knows how to prepare your licensing application or

18. Trust the strategic experts at FTG Management Group To provide you with the expertise
needed to navigate the complexities of local and state licensing

19. Prepare for What Lies Ahead
● The regulatory structure and licensing demands within MAUCRSA can be cumbersome – be
prepared to deal with other consultants and experts such as security consultants, fire safety and
suppression consultants, civil engineers, architects, CPAs, attorneys and others depending on the
nature of your project.
Turnkey Process
● With FTG Management Group, we strive to make every step of the licensure application process
seamless. Though issues arise and challenges occur, no problem is too big for us to tackle.

20. Dispensary, Delivery, Distribution &
Cultivation
● Let FTG Management Group put our
expertise to work for you by managing and
growing your business.
Expertise
● From strategic planning to implementation,
we have developed and build-out cannabis
cultivation facilities and retail businesses, in
California, Oregon & Washington.
Complete Turnkey Solutions
● From the first day, we’ll start working on
your project by developing a strategy to
seek out and secure your local cannabis
license, by scheduling meetings with your
local government officials.
Network of Experts
● Working with various professional in the
cannabis industry, we are able to provide
your business with the best service in the
industry.
Build-out Service
● Cultivation and Retail cannabis business
build-out. Construction services, furnishings,
security system.
Day-to-Day Business Operation
● FTG Management Services include
managing your day-to-day business
operation. We Provide HR services for your
employees, including firing and training.
Bookkeeping & accounting, track & trace
software management, inventory
management, branding, marketing and just
about everything that goes into operating
your business.

21. Principal George Boyadjian, brings over 10 years of extensive cannabis business
experience in California, Washington and Oregon, coupled with professional
experience in technology marketing and education with 420 College.
(855) 420-8255 | www.ftgmanagementgroup.com