# California Cannabis Compliance Notes

**Last Updated**: 2025-12-08  
**Applies To**: CA Grow Ops Manager v0.1.0

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## Overview

This document summarizes how CA Grow Ops Manager supports California cannabis cultivation operations while deferring to **METRC as the system of record** for track-and-trace compliance. It provides context on California DCC (Department of Cannabis Control) requirements and how this platform fits into the compliance landscape.

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## Regulatory Context

### California Department of Cannabis Control (DCC)

The DCC regulates all commercial cannabis activity in California, including cultivation, manufacturing, distribution, testing, and retail. Licensed cultivators must comply with:

- **Track-and-Trace**: METRC (Marijuana Enforcement Tracking Reporting Compliance) is the state-mandated system for tracking cannabis from seed to sale
- **Recordkeeping**: Financial, inventory, labor, and operational records must be maintained and available for inspection
- **Inspections**: DCC and local agencies conduct announced and unannounced inspections
- **Reporting**: Quarterly and annual reports required for license renewal

### METRC (System of Record)

**METRC is the authoritative system** for California cannabis track-and-trace. All licensed cultivators must:

- Tag all plants and batches with METRC-issued RFID tags
- Log all lifecycle events (planting, vegetative, flowering, harvest, destruction) in METRC
- Record all transfers (sales, donations, destruction) in METRC
- Maintain accurate inventory in METRC at all times

**CA Grow Ops Manager does NOT replace METRC.** It supports internal operations and compliance-adjacent recordkeeping while maintaining alignment with METRC data.

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## How CA Grow Ops Manager Supports Compliance

### 1. Internal Batch Tracking with METRC Mapping

- **Internal Batch IDs**: CA Grow Ops Manager uses internal batch IDs for operational tracking (tasks, weights, labor, photos)
- **METRC Tag Mapping**: Internal batches are mapped to METRC plant/batch tags for cross-reference
- **Read-Only in v1**: METRC tags are stored but not synced; users manually enter tags from METRC
- **Phase 2 (Future)**: METRC connector will sync tags and allow writes with explicit user confirmation

**Compliance Benefit**: Facilities can use intuitive internal IDs (e.g., "Batch #123 - Blue Dream") while maintaining METRC compliance.

### 2. Compliance Document Storage

CA Grow Ops Manager provides a centralized repository for compliance-adjacent records:

- **Monthly Taxes**: Excise, sales, and cultivation tax filings
- **Utility Bills**: SMUD, PG&E, water, gas (required for energy usage reporting)
- **Rent/Lease**: Facility lease agreements
- **Invoices**: CO₂, nutrients, materials, packaging
- **Bills of Sale**: Sales records
- **Payroll Summaries**: Labor cost references (not full payroll data)
- **Hours Tracking**: Exports from the Labor module
- **Licenses and Permits**: Current and historical
- **Inspection Reports**: DCC and local agency inspections
- **SOPs**: Standard Operating Procedures

**Compliance Benefit**: All records organized by month/quarter with DCC-aligned checklists; audit packet generation for inspections.

### 3. Labor and Hours Tracking

California labor laws require detailed recordkeeping:

- **Hours Worked**: Clock in/out timestamps for all employees
- **Wage Rates**: Historical wage rates for each role
- **Labor Costs**: Hours × wage rate for cost analysis
- **Payroll Exports**: CSV exports compatible with payroll systems

**Compliance Benefit**: Meets California labor recordkeeping requirements (4 years minimum); supports cost-per-batch analysis.

### 4. Audit Readiness

CA Grow Ops Manager supports audit preparation:

- **Audit Packet**: ZIP export with all documents and indexes (CSV, JSON) for a date range
- **Compliance Checklists**: Monthly/quarterly checklists based on DCC guidance
- **Immutable Audit Logs**: All critical operations logged with user and timestamp

**Compliance Benefit**: Facilities can generate audit packets in minutes; proactive checklists reduce missing records.

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## What CA Grow Ops Manager Does NOT Do

### 1. Replace METRC

- **METRC is the system of record** for track-and-trace
- CA Grow Ops Manager does not sync with METRC in v1 (read-only mapping only)
- Phase 2 will add METRC connector with explicit user confirmation for writes

### 2. Process Payroll

- CA Grow Ops Manager tracks hours and wage rates but does not process payroll (taxes, deductions, direct deposit)
- Exports are provided for external payroll systems (ADP, Gusto, QuickBooks)

### 3. File Taxes

- CA Grow Ops Manager stores tax records but does not file taxes
- Facilities must use external accounting systems or CPAs for tax filing

### 4. Guarantee Compliance

- CA Grow Ops Manager is a tool to support compliance workflows
- Facilities are responsible for ensuring all data is accurate and complete
- Consult with legal and compliance professionals for regulatory guidance

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## DCC Recordkeeping Requirements

Per California Code of Regulations, Title 4, Division 19, licensed cultivators must maintain:

### Financial Records (7 years)

- Bank statements
- Sales invoices and receipts
- Purchase invoices and receipts
- Tax filings (excise, sales, cultivation)
- Payroll records

### Inventory Records (7 years)

- METRC reconciliation reports
- Internal inventory logs
- Transfer manifests
- Destruction records

### Labor Records (4 years minimum)

- Employee hours worked
- Wage rates and payroll summaries
- Workers' compensation records

### Operational Records (7 years)

- Licenses and permits
- Inspection reports
- Standard Operating Procedures (SOPs)
- Pest management logs
- Waste disposal records

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## DCC Inspection Preparation

### Quarterly Self-Audits (Recommended)

1. **Review METRC Data**: Ensure all plants, batches, and transfers are logged
2. **Check Compliance Documents**: Verify all required documents are uploaded and categorized
3. **Reconcile Inventory**: Physical count vs. METRC vs. internal records
4. **Review Labor Records**: Ensure all hours and wage rates are accurate
5. **Update SOPs**: Ensure SOPs reflect current practices

### Audit Packet Contents

For a DCC inspection, prepare an audit packet with:

- **METRC Reconciliation Report**: Exported from METRC
- **Financial Records**: Invoices, receipts, tax filings for the period
- **Labor Records**: Hours, wage rates, payroll summaries
- **Licenses and Permits**: Current and historical
- **Inspection Reports**: All DCC and local inspections
- **SOPs**: Current versions with change history
- **Inventory Logs**: Internal records aligned with METRC

CA Grow Ops Manager can generate this packet (minus METRC data) in minutes.

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## METRC Integration Strategy (Phase 2)

### Read Operations (No User Confirmation Required)

- Sync METRC plant/batch tags to internal batches
- Sync inventory data for reconciliation
- Sync transfer data for cross-reference

### Write Operations (User Confirmation Required)

- Create plant tags in METRC
- Update plant stages (vegetative, flowering, harvest)
- Log harvests and weights
- Create packages for transfer
- Log destructions

### Safety Measures

- **Explicit User Confirmation**: Preview changes before writing to METRC
- **Audit Trail**: Log all METRC operations with user and timestamp
- **Rollback**: Attempt rollback on failure; flag for manual review if rollback fails
- **Rate Limiting**: Respect METRC API rate limits; exponential backoff on errors

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## Official Resources

### California DCC

- **Website**: [cannabis.ca.gov](https://cannabis.ca.gov)
- **Regulations**: [DCC Regulations (Title 4, Division 19)](https://cannabis.ca.gov/cannabis-laws/dcc-regulations/)
- **Compliance Hub**: [DCC Compliance Hub](https://cannabis.ca.gov/licensees/compliance-hub/)
- **Cultivation License**: [Cultivation License Requirements](https://cannabis.ca.gov/applicants/license-types/#cultivation)

### METRC

- **Website**: [metrc.com](https://www.metrc.com)
- **California Guide**: [METRC California User Guide](https://www.metrc.com/california)
- **API Documentation**: [METRC API Docs](https://api-ca.metrc.com/Documentation)
- **Support**: [METRC Support](https://www.metrc.com/support)

### California Labor Laws

- **DIR (Department of Industrial Relations)**: [dir.ca.gov](https://www.dir.ca.gov)
- **Wage and Hour Laws**: [Labor Code Division 2](https://leginfo.legislature.ca.gov/faces/codes_displayexpandedbranch.xhtml?tocCode=LAB&division=2)

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## Disclaimer

**This document is for informational purposes only and does not constitute legal or compliance advice.** Cannabis regulations are complex and subject to change. Facilities should consult with legal counsel, compliance professionals, and the California DCC for authoritative guidance.

**CA Grow Ops Manager is a tool to support compliance workflows but does not guarantee compliance.** Facilities are responsible for ensuring all data is accurate, complete, and aligned with METRC and DCC requirements.

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## Changelog

- **2025-12-08**: Initial version for v0.1.0