Department of Cannabis Control
Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 48 of 229
(2) A serious felony conviction, as specified in Penal Code section 1192.7(c).
(3) A felony conviction involving fraud, deceit, or embezzlement.
(4) A felony conviction for hiring, employing, or using a minor in transporting, carrying,
selling, giving away, preparing for sale, or peddling, any controlled substance to a minor;
or selling, offering to sell, furnishing, offering to furnish, administering, or giving any
controlled substance to a minor.
(5) A felony conviction for drug trafficking with enhancements pursuant to Health and
Safety Code section 11370.4 or 11379.8.
(c) For the purpose of denial of a license to engage in commercial cannabis
manufacturing, a conviction or violation from any jurisdiction that is substantially related
to the qualifications, functions, or duties of the business for which the application is made
include:
(1) A violation of section 110620, 110625, 110630, 110760, 110765, 110770, 110775,
111295, 111300, 111305, 111440, 111445, 111450, or 111455 of the Health and Safety
Code that resulted in suspension or revocation of a license, administrative penalty, civil
proceeding, or criminal conviction;
(2) A violation of Chapter 4 (sections 111950 through 112130) of Part 6 of Division 104 of
the Health and Safety Code that resulted in suspension or revocation of a license,
administrative penalty, civil proceeding, or criminal conviction;
(3) A conviction under section 382 or 383 of the Penal Code; and
(4) A violation identified in subsections (c)(1) or (c)(2) committed by a business entity in
which an owner was an officer or had an ownership interest.
(d) Except as provided in subsections (b)(4) and (b)(5) and notwithstanding Chapter 2
(commencing with Section 480) of Division 1.5 of the Business and Professions Code, a
prior conviction, where the sentence, including any term of probation, incarceration, or
supervised release, is completed, for possession of, possession for sale, sale,
manufacture, transportation, or cultivation of a controlled substance is not considered
substantially related, and shall not be the sole ground for denial of a license. Conviction
for any controlled substance felony, subsequent to licensure, shall be grounds for
revocation of a license or denial of the renewal of a license.
(e) When evaluating whether an applicant who has been convicted of a criminal offense,
act, or professional misconduct that is substantially related to the qualifications,
functions, or duties of the business for which the application is made should be issued a
license, the Department shall consider the following criteria of rehabilitation:
(1) The nature and gravity of the act, professional misconduct, or offense;
(2) Whether the person has a felony conviction based on possession or use of cannabis
or cannabis products that would not be a felony if the person was convicted of the
offense on the date of the person’s application;
(3) The applicant’s criminal record as a whole;