Bureau of Cannabis Control Emergency Regulations CODE OF REGULATIONS TITLE 16 DIVISION
§ 5017. Substantially Related Offenses and Criteria for Rehabilitation
(a) For the purpose of license denial, convictions that are substantially related to the
qualifications, functions, or duties of the business for which the application is made include:
(1) A violent felony conviction, as specified in subdivision (c) of section 667.5 of the Penal
(2) A serious felony conviction, as specified in subdivision (c) of section 1192.7 of the Penal
(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.
(b) Except as provided in subsections (4) and (5) of subsection (a) 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.
(c) When evaluating whether an applicant who has been convicted of a criminal offense 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 Bureau shall consider the following criteria of
(1) The nature and severity of the act 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;
(4) Evidence of any act committed subsequent to the act or offense under consideration that
could be considered grounds for denial, suspension, or revocation of a commercial cannabis
(5) The time that has elapsed since commission of the act or offense;
(6) The extent to which the applicant has complied with any terms of parole, probation,
restitution, or any other sanctions lawfully imposed against the applicant;
(7) If applicable, evidence of dismissal under Penal Code sections 1203.4, 1203.4(a), 1203.41 or
another state’s similar law;
(8) If applicable, a certificate of rehabilitation obtained under Penal Code section 4852.01 or
another state’s similar law; and
(9) Other evidence of rehabilitation submitted by the applicant.
(d) If an applicant has been denied a license based on a conviction, the applicant may request a
hearing pursuant to Business and Professions Code section 26058 to determine if the applicant
should be issued a license.
Authority: Section 26013, Business and Professions Code. Reference: Sections 482 and 26057,
Business and Professions Code.