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CLERK �K OF COUNCIL
DEC X01
OPERATING AGREEMENT FOR
CANNABIS TESTING FACILITY/LABORATORY
A-2018.278
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This Operating Agreement ("AGREEMENT") is dated I 1 /Z l 120115 between
the City of Santa Ana, a charter city and municipal corporation ("CITY") and Q& /-,6,;, b6A c,_,1 5,$
a ("OPERATOR"), collectively referred to as "the Parties". This
AGREEMENT shall become effective on the date that OPERATOR is issued a Regulatory
Safety Permit by CITY for the operation of a cannabis testing facility/laboratory business
conducting cannabis testing and/or laboratory services in whole or in part of its operations
transacted and carried -on by OPERATOR at the following subject property location,
loot C�rk4q« /4� Santa Ana, California -mS-
Public Benefit.
A. Intent. The purpose of this Operating AGREEMENT is to collect fees for the
operation of a cannabis testing facility/laboratory and to provide fees for mitigation options to
be used by CITY to compensate for impacts to CITY services, residents, and/or businesses
as set forth in Santa Ana Municipal Code Chapter 40. The Parties agree that this
AGREEMENT confers substantial private benefits on OPERATOR which should be
balanced by commensurate public benefits. As part of the cannabis Regulatory Safety
Permit process, OPERATOR agrees to enter into this AGREEMENT. OPERATOR has
elected to execute this AGREEMENT as it provides OPERATOR with important economic
benefits. Accordingly, the Parties intend to provide consideration to the public to balance
the private benefits conferred on OPERATOR by providing mitigation measures to the public
and to pay for CITY services as a result of the operating agreement fees collected.
B. Local Hiring and Sourcing. OPERATOR agrees to use its reasonable efforts to
hire qualified City of Santa Ana residents living in Santa Ana to work at its cannabis testing
facility/laboratory business. OPERATOR shall also use reasonable efforts to retain the
services of qualified contractors and suppliers who are located in the City of Santa Ana or
who employ a significant number of City of Santa Ana residents. OPERATOR shall make a
good faith effort to advertise on various social media sites, at local job fairs, and through
public agencies and organizations.
C, Community Benefit and Sustainable Business Practices Plan. OPERATOR
agrees to submit a Community Benefit and Sustainable Business Practices Plan ("Plan") to
CITY that is hereby attached and incorporated into this AGREEMENT as ("EXHIBIT A").
Said Plan shall detail OPERATOR's experience working with community-based groups
such as school districts, college districts, city or county agencies, non-profit organizations,
artist or downtown groups. The Plan shall also include a description of OPERATOR's
efforts for recruiting and hiring local persons and businesses. Said Plan must also outline
commitments by OPERATOR to engage its staff in community service events or programs
in the City of Santa Ana. Plan must also outline and address sustainable business
practices. OPERATOR shall adequately document that it has met the Plan's obligations
and commitments as a condition of renewattextension of this AGREEMENT upon expiration
of the initial term and any extensions.
Operating Fee Rates for Cannabis Testing Facilities/Laboratories; Payment,
0
For each month OPERATOR of the permitted cannabis "testing facility/laboratory
business" (as said term is defined in Chapter 40 of the Santa Ana Municipal Code) transacts
and carries on cannabis testing facility/laboratory business operations at the above-
described property location permitted by CITY, OPERATOR shall pay an operating
agreement fee monthly to CITY. The term "month" or "monthly" as used in this
AGREEMENT shall refer to a calendar month and shall include any fraction of a calendar
month as a whole month. Terms of payment of the operating agreement fee are as follows:
A. OPERATOR's operating agreement fee shall begin to accrue on the date that CITY first
issues OPERATOR a Regulatory Safety Permit and shall be paid to CITY by the last day
of the month following the month for which it is due.
B. OPERATOR shall pay CITY a monthly operating agreement fee which is the higher of
the following two calculations:
i. calculated at a rate of Five Percent (5%) of the gross receipts generated or
otherwise received; or,
ii. calculated at an annual rate of One Dollar and Fifty Cents ($1.50) per square
foot based on the gross square footage of OPERATOR's permitted property
location (as confirmed by the corresponding "Approved Building Set" or the
approved Certificate of Occupancy on file with City of Santa Ana Planning and
Building Agency) whichever is the greater of any square footages indicated,
prorated monthly to one -twelfth (1/12th) of the annual rate amount.
C. OPERATOR shall calculate and report its monthly operating agreement fee based on
both of the above calculations each month; remitting the higher amount to CITY.
D. OPERATOR shall report its operating agreement fee calculations to CITY using the
"Monthly Operating Agreement Reporting Form" set out in "Exhibit B" of this
AGREEMENT which is hereby incorporated into this AGREEMENT by reference.
Operating Fees Not a Pass -Through Fee; Gross Receipts Defined.
A. OPERATOR, as a cannabis testing facility/laboratory business, shall not pass the
operating agreement fees or any portion thereof through to the cannabis
testing/laboratory business' customer in any fashion except as part of the basic product
sales and/or service price.
For the purposes of this AGREEMENT, "gross receipts" shall mean any and all of the
following with respect to OPERATOR's business transacted and carried -on at, from, or
in direct connection with, OPERATOR's City of Santa Ana permitted and licensed
business location or branch facility, hereinabove referenced as "subject property
location":
Transfer of title or possession, exchange or barter, conditional or otherwise, in any
manner or by any means whatsoever, of tangible and/or intangible personal property
for consideration, including any monetary consideration for cannabis
testing/laboratory services and/or related goods or services;
Anything else of value obtained by a cannabis testing/laboratory business;
• The total amount of the sale price of all sales and services;
• The total amount charged or received for the performance of any act, service or
employment of whatever nature it may be, whether or not such service, act or
employment is done as a part of or in connection with the sale of goods, wares,
merchandise, for which a charge is made or credit allowed, including all refunds,
cash credits and properties of any amount or nature;
• Any amount for which credit is allowed by the seller to the purchaser without any
deduction therefrom, on account of the cost of the property sold, the cost of materials
used, the labor or service cost, interest paid or payable, losses, or any other expense
whatsoever; provided that cash discounts allowed or payment on sales shall not be
included;
C. "Gross receipts" shall not include the following:
• The amount of federal transaction taxes (sales, use, excise, value added) imposed
on or with respect to sales made or services provided whether or not the amount of
such taxes is stated as a separate charge; The amount of any California state excise
tax or state cultivation tax regardless of whether or not the amount of such excise tax
or cultivation tax is stated to customers as a separate charge, or any California state,
city or city and county sales or use tax (including any city or city and county
transaction and use tax) required by law to be included in or added to the purchase
price and collected from the consumer or purchaser, or such part of the sales price of
any property previously sold and returned by the purchaser to the seller which is
refunded by the seller by way of cash or credit allowances given or taken as part
payment on any property so accepted for resale; or
D. "Gross receipts" shall be calculated without any deduction on account of any of the
following:
• The cost of tangible or intangible property sold or bartered;
• The cost of materials or products used, labor or service cost, interest paid, losses, or
other expense;
• The cost of transportation of cannabis, or other property or product;
• The amount of any federal or state income taxes or franchise taxes; and
• Any other business costs or expenses, unless otherwise specifically exempted
pursuant to Section 3C of this Agreement.
4. Remittance and Reporting.
Beginning as set forth above and monthly thereafter, OPERATOR shall report and remit
payment to CITY of the applicable operating agreement fee set forth in Section 2 of this
AGREEMENT. OPERATOR shall report to CITY any gross receipts received during the
preceding monthly reporting period and shall remit to CITY on or before the last day of the
month following the operating agreement fee due and owing during said period as
applicable in accordance with Section 2 of this AGREEMENT. When the last day of the
month falls on a City Holiday or City Hall Closure Day then the reporting/remittance date
shall fall on the next City business day following. The operating agreement fee shall be
acknowledged and agreed by CITY to be paid timely if paid on said date. When
reporting/remitting is made by mail, the postmark date shall serve as proof of timely
reporting/remittance.
Records Inspection, Examination and Audit.
OPERATOR acknowledges and agrees that CITY is empowered under this Agreement
to inspect, examine and audit OPERATOR's books and records (including tax filings and
returns), to ascertain the amount of operating fees due and owing. CITY or its authorized
agents shall have the power and authority to conduct a full inspection, examination and
audit of such books and records (including tax filings and returns) at any reasonable time,
including but not limited to, during normal business hours. In the event any such books,
records, tax filings and returns cannot be made fully available within the City of Santa Ana,
OPERATOR acknowledges and agrees that it shall reimburse CITY for the cost of all
transportation, lodging, meals, portal-to-portal travel time, and other incidental costs
reasonably incurred by CITY or its authorized agents in obtaining said full inspection,
examination and audit. In the event that said records inspection, examination and audit
determines that a net operating agreement fee payment deficiency of greater than Five
Percent (5%) exists; OPERATOR acknowledges and agrees that it shall reimburse CITY for
the full cost of said records inspection, examination and audit reasonably incurred by CITY
or its authorized agents.
6. Past due date — Past due penalty; Late interest.
A. Any OPERATOR entity or individual who fails to pay the operating agreement fees
required by this AGREEMENT when due shall be subject to past due penalties and
interest as set forth herein.
i. OPERATOR shall be considered past due if the required monthly operating
agreement fee is not paid by the last day of the month following the month for which it
is due.
ii. For failure to fully pay any monthly fee when due, the following past due penalty and
late interest charges shall be added to the unpaid balance amount owing:
1) A past due penalty of Twenty -Five Percent (25%) per month;
2) A late interest charge of One and One Half Percent (1.5%) per month added to
the unpaid balance amount owing, inclusive of any prior past due penalty or late
interest charges accrued.
4
B. CITY is not required to send a past due notice or other bill or invoice to OPERATOR, or
any other person subject to the provisions of this AGREEMENT and failure to send such
notice, bill or invoice shall not affect the validity of any operating fee, late penalty or late
interest charge due under the provisions of this AGREEMENT.
Term.
This AGREEMENT shall start on the date indicated above and shall terminate on
December 31, 2020 regardless of starting date unless terminated earlier in accordance with
Section 12 or 13 of this AGREEMENT. The AGREEMENT will have one (1) two-year
extension period until December 31, 2022 exercisable by a writing executed by the City
Manager and City Attorney's Office with the approval of OPERATOR.
8. Business License Required.
A valid City of Santa Ana Business License is required for all persons engaged in
transacting and carrying on any cannabis testing/laboratory business activity in the City of
Santa Ana. It is unlawful for any person or legal entity to commence, transact or carry -on
testing/laboratory business activity in the City of Santa Ana without first having procured a
City of Santa Ana cannabis testing/laboratory business license.
9. Operating Cannabis Testina Facility/Laboratory Business.
OPERATOR shall not operate a cannabis testing facility/laboratory business authorized
under the Santa Ana Municipal Code unless:
A. It is the holder of a valid Regulatory Safety Permit issued by CITY in accordance with
the procedures and requirements of Article 1 of Chapter 40, of the Santa Ana
Municipal Code; and
B. At such time as the State of California requires cannabis testing/laboratory business
facilities and businesses to hold a valid license or permit issued by the State of
California, it also holds such license or permit; unless, however, such permit or
license is subsequently not required by the State of California for the type of
cannabis facility or business operation that is the subject of this AGREEMENT.
C. OPERATOR remains in compliance with any and all other laws and regulations
pertaining to commercial cannabis businesses including a cannabis
testing/laboratory business.
D. In addition to the operating requirements applicable to cannabis testing centers
contained in the City's Municipal Code, cannabis testing facility/laboratory business
shall comply with the following operating requirements:
A cannabis testing facility/laboratory business shall adopt a standard
operating procedure using methods consistent with general requirements
established by the International Organization for Standardization, specifically
ISO/IEC 17025, to test cannabis and cannabis products.
ii. A cannabis testing facility/laboratory business shall be accredited by a body
that is a signatory to the International Laboratory Accreditation Cooperation
Mutual Recognition Arrangement.
A cannabis testing facility/laboratory business shall establish standard
operating procedures that provide for adequate chain of custody controls for
samples transferred to the testing laboratory for testing.
iv. A cannabis testing facility/laboratory business shall destroy the remains of
samples of cannabis or cannabis product upon completion of analyses.
v. Any other operating requirement included in this Agreement between
the cannabis testing facility/laboratory business and the City pursuant to the
City's Municipal Code.
10. OPERATOR Indemnification of CITY,
A. OPERATOR will indemnify CITY from any claims, damages, injuries, or liabilities of
any kind whatsoever sustained or incurred by CITY resulting from entering into this
AGREEMENT, and OPERATOR's performance and/or breach of this AGREEMENT.
B. OPERATOR agrees to defend, at its sole expense, any action against CITY, its
agents, officers, and employees related to this AGREEMENT. OPERATOR agrees
to indemnify and reimburse CITY for any court costs and attorney fees that CITY
may be required to pay as a result of any legal challenge related to this
AGREEMENT and/or CITY's approval of a Regulatory Safety Permit. CITY may, at
its sole discretion, participate at its own expense in the defense of any such action,
but such participation shall not relieve the OPERATOR of its obligation hereunder.
11. OPERATOR Compliance with Laws.
OPERATOR agrees to comply with the City of Santa Ana Charter and Municipal Code,
including but not limited to Chapters 18, 21 and 40, and the laws and regulations of the
State of California.
12. Default and Termination for Cause.
This AGREEMENT may be terminated by CITY for cause with thirty (30) days' written
notice to OPERATOR. Cause as used in this section, is defined as:
A. Failure to comply with the terms of the City of Santa Ana Cannabis Regulatory
Safety Permit issued to OPERATOR by CITY;
B. Failure of OPERATOR to maintain a valid active City of Santa Ana Business License
as a Cannabis Testing Facility/Laboratory Business;
C. Failure of OPERATOR to comply with the requirements of the Community Benefits
and Sustainable Business Practices Plan;
D. Unauthorized transfer by OPERATOR of the City of Santa Ana Cannabis Testing
Facility/Laboratory Business Regulatory Safety Permit issued by CITY;
M.
E. Failure by OPERATOR to accurately report gross receipts information or other data
necessary for CITY to calculate/confirm operating agreement fees;
F. Failure by OPERATOR to pay operating agreement fees and related reimbursement
costs within thirty (30) days of the date those fees are due;
G. Failure by OPERATOR to cooperate with CITY or CITY's authorized agents in any
inspection, examination and audit of OPERATOR's cannabis testing
facility/laboratory business books and records (including tax filings and returns).
K OPERATOR shall cure the default resulting from the cause for termination within
thirty (30) days of the date of the notice of termination. If OPERATOR fails to cure
the default within thirty (30) days of the date of the notice of termination for cause,
this AGREEMENT will be terminated.
I. This AGREEMENT will automatically terminate if:
i. OPERATOR's Regulatory Safety Permit is revoked by CITY or is not renewed by
CITY, or
ii.OPERATOR transfers its Regulatory Safety Permit pursuant to Santa Ana
Municipal Code section 40-12.
13. Termination Without Cause.
Upon mutual written agreement of the parties this AGREEMENT may be terminated with
thirty (30) days notice.
14. Termination - Effect on Prior Obligations.
Upon any termination of this AGREEMENT, OPERATOR's obligation to report and remit
operating agreement fees due and payable under the terms of this AGREEMENT for each
month or fraction of a month of a cannabis testing facility/laboratory business operation
engaged in within the City of Santa Ana prior to termination of this AGREEMENT shall
continue to be in effect. Past due penalties and late interest charges shall continue to
accrue and be applicable until all operating fees due under this AGREEMENT are paid in
full. OPERATOR's liability for any remaining unpaid past due penalties and/or late interest
charges shall continue until fully satisfied.
15. Remedies.
A. It is acknowledged by the parties that CITY would not have entered into this
AGREEMENT if it were to be liable in damages under this AGREEMENT, or with
respect to this AGREEMENT or the application thereof, except as hereinafter
expressly provided.
B. Each of the parties hereto may pursue any remedy at law or equitable relief available
for the breach of any provision of this AGREEMENT, except that CITY shall not be
liable in monetary damages, unless expressly provided for in this AGREEMENT.
C. Any dispute, claim or controversy arising out of or relating to this Agreement or the
breach, termination, enforcement, interpretation or validity thereof, including the
determination of the scope or applicability of this agreement to arbitrate, shall be
determined by arbitration in Orange County California before three arbitrators. The
arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration
Rules and Procedures pursuant to JAMS' Streamlined Arbitration Rules and
Procedures. Judgment on the Award may be entered in any court having jurisdiction.
This clause shall not preclude parties from seeking provisional remedies in aid of
arbitration from a court of appropriate jurisdiction.
16. Reimbursement Clause.
In consideration of the time and costs incurred by CITY in the drafting and
implementation of this AGREEMENT, OPERATOR agrees to pay $2,500 to CITY within
thirty (30) days of execution of this AGREEMENT.
17. Attorney Fees and Costs.
In any action or proceeding between CITY and OPERATOR brought to interpret or
enforce this AGREEMENT, or which in any way arises out of the existence of this
AGREEMENT or is based upon any term or provision contained herein, the "prevailing
party" in such action or proceeding shall be entitled to recover from the non -prevailing party,
in addition to all other relief to which the prevailing party may be entitled pursuant to this
AGREEMENT, the prevailing party's reasonable attorneys' fees and litigation costs, in an
amount to be determined by the court. The prevailing party shall be determined by the court
in accordance with California Code of Civil Procedure Section 1032. Fees and costs
recoverable pursuant to this Section 17 include those incurred during any appeal from an
underlying judgment and in the enforcement of any judgment rendered in any such action or
proceeding.
18. Notice.
Any notice, tender, demand, delivery, or other communication pursuant to this
AGREEMENT shall be in writing and shall be deemed to be properly given if delivered in
person or mailed by first class or certified mail', postage prepaid, or sent by fax or other
telegraphic communication in the manner provided In this section, to the following persons:
To CITY: Clerk of the City Council
City of Santa Ana
20 Civic Center Plaza (M-30)
P.O. Box 1988
Santa Ana, CA 92702-1988
Fax 714-647-6956
Copies to: Executive Director — Planning and Building Agency
City of Santa Ana
20 Civic Center Plaza (M-20)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-973-1461
City Attorney
City of Santa Ana
20 Civic Center Plaza (M-29)
P.O. Box 1988
Santa Ana, California 92702-1988
Fax 714-647-6515
To OPERATOR: Qi- 65 D6A
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S^^�n Q�� rA 9z7oS
A party may change its address by giving signed notice in writing to the other party.
Thereafter, any communication shall be addressed and transmitted to the new address. If
sent by mail, communication shall be effective or deemed to have been given three (3) days
after it has been deposited in the United States mail, duly registered or certified, with
postage prepaid, and addressed as set forth above. If sent by fax or email document
attachment, communication shall be effective or deemed to have been given twenty-four
(24) hours after the time set forth on the transmission report issued by the transmitting
facsimile machine, addressed as set forth above. For purposes of calculating these time
frames, weekends, federal, state, County or City holidays, or City Hall closure dates shall be
excluded.
19. Exclusivity and Amendment.
This AGREEMENT represents the complete and exclusive statement between CITY and
OPERATOR, and supersedes any and all other agreements, oral or written, between the
parties. This AGREEMENT may not be modified except by written instrument signed by
CITY and by an authorized representative of OPERATOR. Each party to this AGREEMENT
acknowledges that no representations, inducements, promises or agreements, orally or
otherwise, have been made by any party, or anyone acting on behalf of any party, which are
not embodied herein.
20. Assignment.
OPERATOR may not assign or transfer any interest herein without the prior written
consent of CITY and any such assignment or transfer without CITY's prior written consent
shall be considered null and void.
21. Discrimination.
OPERATOR shall not discriminate because of race, color, creed, religion, sex, marital
status, sexual orientation, age, national origin, ancestry, or disability, as defined and
prohibited by applicable law, in the recruitment, selection,' training, utilization, promotion,
termination or other employment related activities. OPERATOR affirms that it is an equal
opportunity employer and shall comply with all applicable federal, state and local labor laws
and regulations.
22. Jurisdiction -Venue.
This AGREEMENT has been executed and delivered in the State of California and the
validity, interpretation, performance, and enforcement of any of the clauses of this
AGREEMENT shall be determined and governed by the laws of the State of California.
Both parties further agree that Orange County, California, shall be the venue for any action
or proceeding that may be brought or arise out of, in connection with or by reason of this
AGREEMENT.
23. Severability.
If any part of this AGREEMENT is found to conflict with applicable local or state laws or
regulations, such part shall be inoperative, null and void insofar as it conflict with.said laws
or regulations, or may be modified or suspended as may be necessary to comply with any
local or state law or regulation but the remainder of the AGREEMENT shall continue in full
force and effect.
24. Counterparts.
This AGREEMENT may be executed in counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. The
execution of this AGREEMENT may be by actual, facsimile or electronic signature.
25. Disclaimer.
Despite California's commercial cannabis laws and the terms and conditions of this
AGREEMENT or any Regulatory Safety Permit issued pertaining to OPERATOR or the
hereinabove specified property location, California commercial cannabis cultivators,
transporters, distributors, cannabis testing facility/laboratory businesses or possessors may
still be subject to arrest by state or federal officers and prosecuted under state or federal
law. The Federal Controlled Substances Act, 21 USC § 801 et. seq., prohibits the
manufacture, distribution, and possession of cannabis without any exemptions for medical
or non -medicinal use.
26. Authority to Bind.
Each undersigned represents and warrants that its signature hereinbelow has the
power, authority and right to bind their respective parties to each of the terms of this
AGREEMENT, and shall indemnify CITY fully, including reasonable costs and attorney's
fees, for any injuries or damages to CITY in the event that such authority or power is not, in
fact, held by the signatory or is withdrawn.
10
IN WITNESS WHEREOF, the parties hereto have executed this AGREEMENT the date and year
first above written.
r
APPROVED AS TO FORM:
SONIA R. CARVALHO
City Attorney
By: ^ ;�-
Lisa Storck
Assistant City Attorney
FOR APPROVAL:
Minh Thai, Executive Director
Planning & Building Agency
CITY OF SANTA ANA
RAUL GODINEZ II
Clerk of the Council
City Manager
OPERATOR
LEGAL
NAME: QG L<b5
SIGNATORY
NAME: i3c F La„n.
11
TITLE:
TAXPAYER ID: y7 s Syq 1171
Santa Ana Community Benefit and Sustainability Report
November 2018
Letter from the CEO and Co -Founder of Cannalysis
Since our founding we have strived towards innovative, technology-based solutions for
large-scale cannabis testing. We employ a STEM (Science, Technology, Engineering,
and Math) based, professional workforce with deep expertise within the fields of
chemistry, biotechnology, robotics engineering, software development, laboratory
operations, and finance. Our team combines their intelligence and expertise with the
latest laboratory and information technologies to position Cannalysis at the bar -setting
forefront of quality control and regulatory compliance in the testing of medicinal and
recreational cannabis products
We committed to investing in state-of-the-art lab equipment in our Santa Ana
Headquarters to ensure we were among the first cannabis testing labs to receive the
rigorous ISO/IEC 17025:2005 Accreditation in California. Additionally, Cannalysis is the
largest licensed cannabis testing facility in the country. Consequently, our team is well
positioned to continue establishing the gold standard for quality and delivery of
innovative testing services while setting the bar for added value to our clients.
We deliver increased transparency of cannabis products to inform both supply chain and
consumer decision-making and reduce environmental impact. Our testing services provide
information on acceptable amounts of compounds to verify products are safe for human
consumption and to inform consumers about product potency parameters. To help ensure
our clients and consumers are protected, the senior executives and scientists of
Cannalysis meet regularly with policy makers and state legislators to ensure consumers
are protected by the same regulations as big pharma. Good governance is required to
continue increasing transparency for consumers.
We are working to ensure Canalysis delivers information to further inform consumers,
thereby helping to promote informed, responsible use of cannabis products. Cannalysis is
innovating new ways of thinking about and operating within the cannabis market.
We have ambitious goals and we are working everyday with our talented team of
professionals, stakeholders and community to continue to improve the value Cannalysis
creates and delivers as the demand for testing increases.
With many lessons learned to date, 2018 is marking another successful year in our pursuit
of increasing transparency throughout the cannabis supply chain.
Brian Lannon
CEO and Co -Founder of Cannalysis
2lpage
Table of Contents
Contents
Tableof Contents................................................................................................................................
3
OurApproach..................................................................................................................................
4
Vision....... ................................... .......................................... .............................................:............
4
Mission............................................................................................................................................
4
History.............................................................................................................................................
4
WhatWe Do.................................................................................................................................
5
Investing in our People and Community.......................................................................................
6
CommunityGiving........................................................................................................................
6
Jobs Contribution to Santa Ana.................................................................................................
6
Diversityand Gender...................................................................................................................
7
CannalysisGender......................................................................................................................
7
EmployeeEngagement...............................................................................................................
8
SantaAna First..............................................................................................................................
9
Gettingthe basics right...............................................................................................................
9
Sustainable Business Practices.......................................................................................................
9
UN Sustainable Development Goals...........................................................................................
9
Governance...............................................................................................................................
11
StakeholderEngagement.........................................................................................................
11
MaterialityImpact.......................................................................................................................
12
PublicPolicy.................................................................................................................................
13
SourcingLocal.............................................................................................................................
13
FutureGoals................................................................................................................................
14
3 1 P a g e
Our Approach
Vision
Cannalysis will become the worldwide leader in cannabis testing, driving
innovation through technology and empowering the supply chain through
transparency.
Mission
Cannalysis pairs the best and brightest talent with the latest in cutting edge
technology to empower our customers with data and transparency in order to
verify the legal supply chain of cannabis is compliant and safe for consumption.
History
Cannalysis started in 2015 as an idea and quickly morphed into an innovative
operational business. Our idea stemmed from the need to provide standardized
service to analyze cannabis and to increase transparency for cultivators,
manufacturers, dispensaries, and individuals looking to know more about their
products. We provide the conduit between data and consumers, thus
transforming the cannabis industry.
We have developed cutting edge testing methodologies and created a proprietary
software platform to seamlessly integrate real-time data into current operations.
This creates the infrastructure to increase transparency and drive innovation in the
Cannabis industry.
Cannalysis moved its headquarters from Costa Mesa to Santa Ana in February
of 2018. Before opening our doors, we invested $2.3 million dollars in state-of-
the-art equipment and laboratory construction. Cannalysis chose Santa Ana
because of its pro-business development for cannabis companies, continual
economic development and its central location, which allows us to attract and
retain top talent. Santa Ana embraces a culture of diversity and inclusion that
supports our diverse team and partners of all backgrounds.
Cannalysis is now a fully licensed and BSO/IEC 17025:2005 Accredited
analytical cannabis laboratory serving all of California. Additional locations are
under way in Northern California, Oregon and Massachusetts. We use
validated scientific methods to analyze cannabis products for compliance.
Cannalysis provides Compliance Certificates of Analysis which are sent to the
Bureau of Cannabis Control. We provide a safety net for all medicinal and
recreational cannabis products to ensure that product complies with state laws.
41Page
What We Do
Analyze
We qualify and quantify cannabinoids, chemical
residues (pesticides, fungicides, plant growth
regulators), residual solvents, microbiological
impurities, heavy metals, terpenes, moisture
content and water activity to help consumers
understand the potential health effects of the
product they consume. Manufacturers can more
accurately dose their products, and cultivators can optimize their harvestsfor
reduced environmental impacts. All test types are performed using validated
scientific methods across all cannabis mediums.
Communicate
Our proprietary software platform, built from the ground up, streamlines the
testing experience and puts the results at your fingertips in an easily
accessible and understandable format. It is directly connected to our
laboratory, so you have real-time information as to the status of your sample.
Additional tools and notifications we provide create a testing experience that
goes above and beyond what is currently available anywhere else in the
market.
Integrate
Cannalysis provides an open API from our online
)Cannalysis platform, allowing our customers the ability to integrate
(s_iJlJ product information, photos, and test results directly to
their own internal systems (ERP, POS, etc.), state track
co
£ 6 and trace, or Weedmaps menus at the click of a
button.
51Page
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Example of a Cannalysis dashboard
Our proprietary software platform, built from the ground up, streamlines the
testing experience and puts the results at your fingertips in an easily
accessible and understandable format. It is directly connected to our
laboratory, so you have real-time information as to the status of your sample.
Additional tools and notifications we provide create a testing experience that
goes above and beyond what is currently available anywhere else in the
market.
Integrate
Cannalysis provides an open API from our online
)Cannalysis platform, allowing our customers the ability to integrate
(s_iJlJ product information, photos, and test results directly to
their own internal systems (ERP, POS, etc.), state track
co
£ 6 and trace, or Weedmaps menus at the click of a
button.
51Page
Investing in our People and Community
Community Giving
We provide philanthropic support to local programs helping to improve the lives
of disadvantaged students and our Santa Ana Community.
Cannalysis supports a local non-profit organization, Boys Hope Girls Hope
(BHGH), which has homes in Santa Ana. BHGH helps academically motivated
children in need meet their full potential by providing housing, food, school
supplies, and mentorship. We know that these types of programs can help give
students a fresh start and provide safe spaces to grow, learn and prepare for
college. In 2018 Cannalysis donated $2,000 to Boys Hope Girls Hope to
empower the hope of ambitious local youth.
Jobs Contribution to Santa Ana
In the last year we grew our team of 7 to 28 employees that work out of our
Santa Ana Headquarters. We've increased our staff by 300% over the past year
and are projected to grow our Southern California team to 50 full-time
employees by the end of 2019. To accommodate increasing demand for
cannabis compliance testing, we have a planned lab expansion with an
estimated buildout cost of $250,000 and an additional $2 million of equipment
planned for 2019.
Our business is inherently focused on recruiting employees from the Science,
Technology, Engineering and Math (STEM) fields. Unlike many other cannabis
businesses, the talent we attract is being pulled from top companies in Pharma,
Software, Biotech, and Robotics.
California's budding cannabis industry is expected to hit $3.7 billion by the end
of 2018 and is projected to increase to over $5 billion in 2019.1 In a report by the
https://www,businessinsider.com/californ ia-legalizing-weed-on-january-1-market-size-revenue-
61Page
2017-12
California Bureau of Cannabis Control there are 450 licensed state retailers, of
which, 18 retailers are based in Santa Ana.2' Our headquarters are located in
close proximity to Los Angeles, the largest cannabis market in America.3
According to the Bureau of Cannabis Control there are 36 licensed Testing Labs
in the State of California as of November 1, 2018,4 yet only a handful are
operational. Santa Ana is positioned to become Southern California's premier
fully developed market for cannabis testing and retail.
Cannalysis helps create more local wealth and jobs. Our business provides
economic stimulus to Santa Ana through payroll, goods and services purchased
from local businesses, profits spent by owners, and donations to local charities.
Cannalysis helps create more local wealth and jobs for the Santa Ana
community.
Diversity and Gender
At Cannalysis, we want to create a workplace that is inclusive of everyone. We
have cultivated a company culture where everyone can be their authentic
selves. To create a safe environment for our team members we need to create
an environment that inspires each individual tothrive.
Cannalysis Gender
We started small and humble but as we
grow we plan to increase representation of
women and diversity on our team. We know
it is vital to our business to improve the
experience for women and
underrepresented populations. We
understand that we need to focus on moving
towards a 50-50 gender balanced workforce
and will double down to make that a reality.
Cannalysis Labs Gender
a Male 64;& R female 36A
2 https://www.bcc.ca.gov/clear/ileense-search.htmlf
3 https://www.thecannabist.co/2017/12/06/los-angeles-marijuana-regulations-progress/94006/
4 https://www.bcc.ca.gov/clear/documents/testing.pdf
5https://www.amiba.neUresources/multi'plier-effect/
71 Page
Cannalysis Labs Race & Ethnicity
LGBTQ+ Community
N Asian 7%
Stack or African
American 4%
IF
Hispanic or Latino
21%
M Indian 7%
■ White 61%
Race & Ethnicity
At Cannalysis, we
seek to build a
diverse talented
team who will grow
professionally,
personally and
challenge each
other to be their
best. We have
created an inclusive
community through
encouraging open
communication,
collaboration and
respect. We plan to
continue in this vein
as we expand and
diversify our
workforce even
further.
We have asked our employees to self -identify their sexual orientation. Their
responses were voluntary, and from those who participated we found that 7% of
our workforce identifies with the LGBTQ+ Community. We recognize this is an
area that we need to focus on as we grow ourteam.
Employee Engagement
Through our company we engage and empower our employees to give back.
We know how difficult it can be to start a business which is why we always try to
support local first and whenever possible. During two team social hours hosted
at our headquarters, we contracted Soho Tacos, a Santa Ana based business,
which reinvested $3,000 into a local Santa Ana business.
We plan to expand our employee engagement as our team grows to include
volunteer days in the community in which employees can take a Volunteer
Time -Off (VTO) included in our employee handbook.
Furthermore, we would like to encourage our employees to consider alternative
transportation which includes carpooling, vanpooling, public transportation,
81 Page
biking, walking, etc. By 2020 we plan to offer $20 a month per employee to
positively impact public health, economic growth, and quality of life.
Santa Ana First
We realize the value and power of employing team members locally. Where
you live is a material factor for employers when assessing candidacy.
Cannalysis prefers to hire, "local' candidates for our growing team in order to
recruit high quality talent, reduced commute times, and be located in a city
that aligns with our company culture. When we create a job posting we
typically have over 200 applicants and have never experienced a shortage of
paper -qualified candidates.
Getting the basics right
Full-time employees are provided a wide variety of benefits. In our company
culture we depend on each team member to contribute to the success of the
company therefore we offer our employees comprehensive benefits. Cannalysis
currently offers the following benefits:
• Kaiser Gold Level Healthcare • Parental Leave
• Vision/Dental Plan 0 401 K Savings Plan
Paid Vacation
We provide Kaiser Gold Level Health Care, dental and vision. In addition, we
offer a Safe Harbor 401(k) Savings Plan which offers free 3% of salary for
retirement planning.
Sustainable Business Practices
UN Sustainable Development Goals
2018 was an important year at Cannalysis but our
journey is just beginning. As we look towards the
SUSTAINABLE future we want to align our sustainability goals with
DEVELOPMENT the United Nations Sustainable Development Goals
(SDGs). Cannalysis is an innovative tech -based
' le"ALS company and we believe business can drive market-
based solutions in the cannabis industry. We
are committing to collaborate, learn and take risks to transition into a socially
responsible company. In order to create transformational change, we need to
identify how we can address global sustainable development.
91Fage
4 QUALITY
EDUCATION
V i
8 DICENTWORKAND
ECONOAOCGROWTH
'�
4 QUALITY Goal 4 1 Quality Education
EDUCATION
We support local nonprofits that increase the ability for disadvantaged
'students to receive a quality education. We believe that the building
blocks of a society is through building a solid foundation of education.
Education is in our company DNA and our team comes from a broad
array of educational institutions. We have PhD scientists, biologists,
mechanical engineers, software developers lab technicians, and more.
Goal 5 1 Gender Equality
Although we are a relatively new company we take gender and diversity
seriously. We understand that in order to grow we must push ourselves to
give everyone a seat at the table.
8 DEBENTINORXAND Goal 8 1 Decent Work and Economic Growth
ECCXpdIC0R0W1N
As we expand we can hire more full-time employees and provide an
inclusive workspace and fair wages. We want to get the basics right the
first time around to retain our talented workforce.
Goal 9 1 Industry, innovation and Infrastructure
As an industry leader in cannabis testing, we feel it is our responsibility to
continue to lead in innovation and infrastructure. Our approach has
always been to think outside the norm and push boundaries to increase
efficiencies. Solid infrastructure is needed to support this innovation and
we plan to build that as the foundation of our growth,
10 Page
Governance
The Cannalysis Board of Directors is involved in the growth, strategy and
operations of the business: asking the difficult questions, reviewing all decisions
made. All of our board members have over five years of experience. As we
expand our board we are seeking to increase the number or women on the board
to diversify experiences and viewpoints.
Stakeholder Engagement
Stakeholder Groups
Mechanism for
Typical
Key Topics of Interest
Engagement
Frequency
Communities
Meetings, email
Monthly
Economic development,
communications.
employment trends,
environmental impacts, and
community needs etc.
Customers/Retailers
Events, meetings,
Daily
Market trends, technology
smalls, social
needs, opportunities, state
media.
policy requirements.
Employees
Emails, meetings,
Daily
Company strategy,
surveys, trends.
engagement, andprocess.
Investors
Calls, emails,
Weekly
Market trends, company
meetings,
performance, risk
marketing
management.
materials.
Industry Trade
Meetings, smalls,
Weekly
Research, progress,
Associations
conferences
opportunities, workforce
development.
Shareholders
Meetings, mail,
Monthly
Company's financial
media
performance, risk
management.
Regulators
Meetings, emails,
Daily
Company's environmental and
calls
social impacts.
Academia
Panels, meetings,
Quarterly
Research progress,
research projects,
opportunities, workforce
awards
development.
The stakeholder analysis helps to evaluate and identify stakeholders that can
impact our strategy and reputation. These stakeholders can help drive
sustainability in our space and help improve how sustainability will impact the
Cannabis industry.
111Psge
Materiality Impact
Materiality is a critical input to our community benefit strategy because it
ensures that we provide our stakeholders with sustainability information that is
relevant to them. In order to do this, we conducted a materiality assessment.
We chose to assess ten material aspects of sustainability for Cannalysis. The
Global Reporting Initiative G4 guidelines recommends that materiality include
direct and indirect impacts on its ability to preserve economic, environmental
and social value. 6 A sustainable materiality report focuses on broader
traditional measures of financial materiality to consider economic,
environmental and social impacts that can meet the needs of today without
compromising the needs of future generations.?
6 https://www2.globalreporting,org/standards/g4/Pages/default.aspx
7 https://www.globalreporting.org/SiteCollectionDocuments/Materiality.pdf
121Page
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Product Safety and
Stewardship
x
x
x
x
x
x
x
x
Modern, Innovative
Technologies and
Products
x
x
x
x
x
x
x
x
x
Climate Change
Mitigation and
Adaptation
x
x
x
x
x
x
x
x
x
x
Business Practices
x
x
x
x
x
x
x
x
x
Business Ethics
x
x
x
x
x
x
x
x
Postive Relationship
with Local Community
x
x
x
x
x
x
x
x
Regulatory Policy
x
x
x
x
x
x
Land Use
x
x
x
x
x
x
x
x
x
Soil Health
x
x
x
x
x
x
x
x
x
Patent and Data
Rights
x
x
x
x
x
x
Talent Management,
Benefits and Diversity
x
x
x
x
Cannabis Labeling
x
x
x
x
x
x
x
x
x
x
Occupational Safety
x
x
x
x
x
Political Spending
x
x
x
x
x
x
x
6 https://www2.globalreporting,org/standards/g4/Pages/default.aspx
7 https://www.globalreporting.org/SiteCollectionDocuments/Materiality.pdf
121Page
Public Policy
The California Cannabis Industry Association (CLIA) was founded to promote
the growth of a responsible and legitimate cannabis industry. CLIA works
towards social, economic, and legal, and environmental goals for the cannabis
industry in California. As the industry's top trade organization Cannalysis
identified this stakeholder as being key to regulatory policy progress in
California.
Our Chief Scientific Officer, Dr. Swetha Kaul has a PhD in Analytical Chemistry
and a Masters in Pharmacology and Toxicology. She has over 11 years of
experience and hails from the Botulism Toxin Research and Formulations Team
at Allergan. She heads our efforts with CCIA by serving on its Board of
Directors. Dr. Kaul is also the Chair of the Quality Control Committee, which
makes recommendations to the state regarding testing. This committee is
focused on the practical application of the rules and regulations as they pertain
to testing labs and the cannabis industry. This committee provides best
practices and insights to quality control issues and spear heads educational arm
of the CCIA.
Dr. Kaul also serves as the chair the Diversity and Inclusion Committee, which
pushes for social equity, mentorship, and diversity in the cannabis industry. This
work is integral in order to diversify our industry throughout all levels of leadership
to reflect the diverse consumer base.
Sourcing Local
Whenever possible Cannalysis tries to utilize local businesses. We recently began
a new robotics project to design a platform which will increase efficiency and
accuracy within our lab. The long-term goal is to reduce our operating costs
and generate more precise results.
Chris Scholl, our Director of Automation and Robotics, has always preferred to
utilize local businesses for his projects. These types of projects are complex, and
we need to work closely with the supplier in order to get the exact specifications
dialed in. We choose to source locally because the proximity to our business
allows us to build relationships in our community, receive superior customer
service as well as being important to our company culture.
To make this project a reality we are currently collaborating with Metal Works, a
CNC machine shop located on Edinger Avenue and Grand Avenue. They have
been an integral part of creating the Robot's custom stainless-steel gripper
fingers and custom anodized aluminum tube rack carriers. We are also working
with Bay Advanced Technologies (BAT), an automation supplier located on
Ritchey Street and Newport Circle in Santa Ana. BAT have supplied us with the
131Page
air pneumatic components which are used to connect, control, clean and
regulate the compressed air supply which is used on the robot platform. Lastly
Weld Design, a CNC machine shop provides custom welding and fabrication
located on McFadden Ave and Lyon Street. Weld Design has submitted an RFP
for a custom fabrication and CNC machining a heavy-duty table to serve as the
base to support the entire robot platform structure.
Future Goals
Gender, Diversity, and Inclusion
In 2018 we began the first step which is surveying where we currently stand to
set our targets. This process is a learning experience for us — we need to
determine which groups we plan to set targets for managers, seniority levels, and
our board.
We understand that environment, gender equality and flexibility are integral to a
core business. Gender equality facilitates better business understanding both
genders, increases creativity, innovation, and organizational agility.z In order to
meet a target set we have identified the systems required to support the
achievement of our targets. We have leadership commitment, strategic intent,
stakeholders, organizational culture and accountability through measurement and
reporting. By 2020, Cannalysis has set a target to achieve a 50-50 gender ratio.
In order to develop Diversity and Inclusion targets we plan to distribute an
employee survey to understand what goals they would like to see implemented.
We want to have 60% of our employees submit responses to create an initial
benchmark. Cannalysis should strive for a board and leadership that reflects the
community profile in terms of race, ethnicity, socioeconomic status, sexual
orientation, age, cultural identification, and physical ability. This is not to say that
people from one group will not do a good job representing people from another.
However, diverse board and leadership encourages the exchange of different
perspectives, facilities innovative problem -solving, and supports social equity in
communities.
In 2019 we plan to increase our outreach efforts to target an increase in
underrepresented applicants by 20%. We plan to work with our Human
2 For example Credit Suisse (2012), Gender Diversity and Corporate Performance, McKinsey (2010), Women
Matter: Women at the top of corporations: Making it happen, McKinsey and Company (2012), McKinsey Quarterly:
Is there a payoff from top team diversity?
141Page
Resources contact to start tracking the number of diverse candidates we are
interviewing moving forward. We will overhaul our job descriptions to include
inclusive language. We also plan to reach out to the Santa Ana Business
Chamber of Commerce to include all Cannalysis job listings.
By the end of 2019 we plan to reassess job requirements for senior leadership
and board positions, expand our applicant pool, acknowledge unconscious bias,
rethink our interview process, minimize gender pay gap and make sure that
everyone has access to mentors.
Energy and Emissions
Energy Tracking and Management
We are in the process of drafting a full building inventory, collect twelve months
of complete utility data for each building and enter that information into an
Energy Tracking and Management (ET&M) system to establish a historical
baseline. Then utilize the Department of Energy's Energy Star Portfolio Manager
(ESPM) to log our data.
Cannalysis Commercial Energy Fellowship
We plan to hire a summer fellow to critically assess Commercial Energy
Efficiency. The fellow will gather data and energy metrics to create an Energy
Star Portfolio to benchmark for the Santa Ana Headquarters and research the Go
Green Financing Program an energy efficiency program run by the state to
reduce energy usage, improve the comfort and health of our business.
Furthermore, this fellow can explore energy business goals, fleet electrification,
hybrid vehicles, circular economy, and green chemistry options to reduce our
environmental footprint.
Greenhouse Gas (GHG) Footprint
A Carbon Footprint measures the amount of greenhouse gas (GHG) emissions
produced by operations in a given year. Creating a footprint is the first step to
reducing GHG emissions. Completing a Carbon Footprint requires an accounting
-like inventory of all the sources of GHG in our building, fleet, and operations.
The footprint will also enable us to track its progress and determine if new
policies are having an impact.
Transportation - Fleet Inventory
Cannalysis manages equipment and vehicles that provide services and allow
151,Page
employees to conduct business. The equipment and vehicles make up a fleet
that contributes to greenhouse gases as well as other pollutants to the
environment. Performing a fleet inventory allows us to evaluate our current
vehicles and equipment to better understand where efficiency might be
improved. The inventory includes surveying how the vehicle is used, as well as
its environmental impact and fuel usage.
Assess Green Fleet and Fleet Electrification
A "Green Fleet" minimized the negative environmental impacts, as well as
operating costs by improving energy efficiency and reducing emissions through
the use of alternative vehicles and fuels. Green fleets are developed by
purchasing more fuel-efficient vehicles, converting to cleaner fuels, training
drivers to operate vehicles for maximum efficiency, downsizing to small vehicles
and reducing use of motor vehicles.
Electric Vehicle Charging Station Infrastructure
The benefits of fueling transportation with electricity, rather than petroleum, are
especially pronounced in California since transportation represents a large
portion of energy use and greenhouse gas emissions. Furthermore, California's
electricity supply is relatively clean compared to other states. Increasing the
fraction of miles that are electrically fueled translated to direct improvements in
air quality, reduced GHG emissions, and reduced dependence of fossil fuels.
Facilitating a faster migration to electrically fueled vehicles is one of the highest
impact strategies for making California's energy infrastructure more sustainable.
Implementation & Reporting
We plan to form a Cannalysis Sustainability Committee (CSC) which will lead the
development and implementation of the goals and initiatives stated in this report.
The CSC will be responsible for company -wide implementation and reporting
based on the Santa Ana Community Benefit and Sustainability Report. This plan
will be implemented through the 2020 Fiscal Year. This plan is a living document
and will evolve and change over time with a formal process to review, update,
and establish new goals at the end of each year.
Procurement — Green Purchasing Program: Cleaning Products
Green cleaning products offer effective performance while minimizing effects on
health, environment, and worker safety. Cannalysis plans to select
environmentally cleaning products for our headquarters. We will scope this
project with the help of the Procurement Support Intern to research and compile
16Page
a list of products, prices, vendors and service providers that offer
environmentally friendly cleaning products.
Procurement Support Intern
We plan to incorporate sustainable sourcing in our procurement strategy for
2019 and 2020. We plan to hire a summer intern to help kick of this project from
June to August with an option to stay on our team to December of 2019. This
intern will assess and rank suppliers to provide information on costs to institute
a green purchasing policy. This intern will also research the Green Labs
Programa at Harvard and the Sustainable Labs Guides from McGill University to
cultivate the next generation of sustainability solutions for the cannabis industry.
Recycled Paper
Buying recycled content products is simple way to make progress towards
implementing a comprehensive Green Purchasing Program. Our target is to
purchase 50% recycled products from existing vendors and seek out new
suppliers if necessary. Furthermore, we plan to purchase at least 50% of our
copy paper with a minimum of 30% post -consumer recycled content.
Recycling
Develop and implement a comprehensive Recycling and Waste Reduction
Education and Compliance Strategy aimed at increased the quantity and quality
of recycling materials collected from employees, while reducing the amount of
solid waste they generate.
Conclusions
We have a long road ahead of us to improve our community benefit and
sustainability strategy. The strong foundation we have built as a company and
an industry leader have positioned Cannalysis to take the lead on policy, social
equity, and environmental issues in the market as it is a priority for our company.
We look forward to continued growth as Santa Ana considers developing a
Department of Cannabis Regulation to help spur further growth in our region.
8 https://green.harvard.edu/programs/green-labs
g https://mcgill.ca/sustainability/files/sustainability/sustainable-labs-guide-final-2017.pdf
171Page
Resources
Berke, J. (2018, February 28). California's cannabis market is expected to soar to
$5.1 billion - and it's going to be bigger than beer. Retrieved from
https://www. businessinsider.com/california-legalizing-weed-on-january-1-
m a rket-s i ze- reve n u e-2017-12
Department of Consumer Affairs, State of California. (n.d.). Check a License.
Retrieved from hftps://www.bcc.ca.gov/clear/license_search.htmi
Department of Consumer Affairs, State of California. (n.d.). License Search.
Retrieved from httos://www.bcc.ca.gov/clear/license search.htmif
Global Reporting Intitative. Materiality: What Topics Should Organizations Include in
Their Reports?
www.globalreporting.org/SiteCollectionDocuments/Materiality.pdf. Accessed
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G4 Sustainability Reporting Guidelines. (n.d.). Retrieved November 07, 2018, from
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H. (n.d.). Green Labs. Retrieved November 10, 2018, from
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Los Angeles, America's Biggest Marijuana Market, Finalizes Rules For Sales
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Associated Press - https://www.thecannabist.co/2017/12/06/los-angeles-mariivana-
regulations-progress/940 0 6/
SDG Compass The guide for business action on the SDGs (pp. 1-30, Rep.). (2015).
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Testing Licenses (pp. 1-2, Rep.). (2018). Rancho Cordova, CA: Bureau of Cannabis
Control. doi:https://www.bcc.ca.gov/clear/documents/testing.pdf
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