Manufacturer Due Diligence

Manufacturer Due Diligence

 

Manufacturer Supplement

  • Anyone with at least 20% ownership interest in the company, the CEO, the Board of Directors (for nonprofits), partners (for partnerships), members of an LLC, officers and directors (for corporations), or who is involved in the direction, control or management of the company
  • Anyone who holds less than 20% ownership and does not participate in the day to day direction, operation and control of the company. This does not include financial institutions providing loans, entities holding liens on the property, etc.
  • A certification for each applicable extraction system which contains:  The signature and stamp of a California-licensed professional engineer  Serial number of each extraction unit  Confirmation that the unit was commercially manufactured, meets good engineering practices and is safe for its intended use.
  • How will the location and nature of cannabis and cannabis product be tracked within the premises?
  • How will the building be maintained to ensure clean and sanitary operations and minimize contamination of cannabis products, ingredients, equipment and supplies?Include a description of grounds maintenance, plumbing/drainage, pest exclusion and ventilation. What measures will be taken to prevent cross-contamination and adulteration of products?Include descriptions of how raw material will be stored and how equipment will be cleaned and sanitized. What measures will be used to ensure workers maintain personal hygiene and cleanliness? How will the business address complaints and recalls?
  • How will cannabis products be loaded and unloaded at the premises, and what will be done to prevent diversion and ensure product safety during transportation?  What measures will the business use to safeguard cannabis products, raw materials and other ingredients from contamination or degradation during transportation (ex: refrigeration, proper storage)?  What processes will be used to safely transfer products from one area to another within the manufacturing premises?
  • What measures will be used to prevent access to the premises and limited-access areas by unauthorized personnel?  How will theft or loss of cannabis and cannabis products be prevented?  What methods will be used to limit access of personnel to those areas of the premises necessary to complete job duties?  Include descriptions of physical barriers used to secure perimeter access and all points of entry into the manufacturing premises, alarm system, sign in/out procedures, and video surveillance system.  How will electronic records be secured and backed up?  How will surveillance footage be stored?
  • How will cannabis and non-cannabis waste generated on the premises be handled and disposed of?  What methods will be used to secure the area in which waste is stored and/or receptacles and limit access to employees, the local agency or waste haulers?  Provide the name of the entity hauling the waste if a local agency or waste hauler will be used. If the licensee will self-haul or otherwise dispose of the waste, include a description of what will be done. Note: Any manufacturer submitting operating procedures and protocols to the Department pursuant to the Act may

 

Due Diligence Suite

Business Due Diligence Checklist         Cultivation Supplement

Distribution Supplement               Manufacturer Supplement

Retail Supplement                           Owner Information Supplement