All that has changed with the MAUCRSA, where applicants may show prior compliance with local laws prior to state licensure, but it’s up to the city or county to alert the state within 60 business days if the license applicant isn’t in compliance with local laws. Quality assurance, inspection, and testing requirements of cannabis and cannabis products prior to retail sale are going to change. Now, among other requirements, distributors will be required to store cannabis batches Medical marijuana on their premises during testing, testing lab employees will be required to obtain samples for testing and transport those samples to testing labs, and distributors will be required to conduct a quality assurance review to ensure compliance with labeling and packing requirements. The AUMA contained a residency requirement that’s now been repealed by the MAUCRSA. The MCRSA never had a residency requirement, but this is still a significant development since it means out-of-staters and even foreign companies can set up shop in California for medical and recreational marijuana. However, don’t put it past some California cities and counties to implement their own “ locals only ” standards. By certain deadlines, cultivators must provide in their state applications their water sources. If your water source stems from any kind of diversion, you’re staring at a July 1, 2017, deadline by which you must file all requisite paperwork with the Water Resources Control Board. The MAUCRSA requires the Department of Food and Agriculture (rather than the Bureau) begin establishing standards to designate a county of origin for cannabis no later than January 1, 2018. And by no later than January 1, 2021, the Department must establish a process by which licensed cultivators may “establish appellations of standards, practices, and varietals applicable to cannabis grown in a certain geographical area in California.” The definition of “Owner” has changed, and it no longer includes any distinction for publicly traded companies like in the MCRSA. “Owner” now means any of the following: A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.