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California Cannabis License Solutions
Our experienced team of 20+ years will assist you in completing the local permit procedures, finding out what the state's rules are for cannabis businesses, and assembling the necessary application materials and information. Winning a California cannabis license can be a competitive and complex process due to the high demand and strict regulations in the industry. Having to repeat your California cannabis license application procedure can set your business back by months and substantially reduce your earning potential.
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Clients Served
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Market Potential - California Cannabis License
California has perhaps the longest history and richest culture within the US cannabis markets across the country. The first state to legalize medical cannabis with Prop 215 and subsequent recreational legalization in 2018 with Prop 64.
California remains number one as the largest cannabis market in the nation. With both adult-use and medical marijuana, the state has some of the most developed laws in the US, including areas with consumption lounges and special events. The Adult Use of Marijuana Act (AUMA) also referred to as Proposition 64, ushered in full legalization in 2016 with the first recreational cannabis sales in California occurring in January 2018.
California remains number one as the largest cannabis market in the nation. With both adult-use and medical marijuana, the state has some of the most developed laws in the US, including areas with consumption lounges and special events. The Adult Use of Marijuana Act (AUMA) also referred to as Proposition 64, ushered in full legalization in 2016 with the first recreational cannabis sales in California occurring in January 2018.
*Via California Department of Cannabis Control, information is accurate as of Feb. 3, 2022.
Licensing Requirements, Timelines, and Selection
Receiving cannabis licensing for any California cannabis operation varies greatly from County to County and/or City and Town jurisdictions. Application processes vary from in person submissions, online portals, and interview panels with elected and local officials. Requirements to obtain a license may require an RFP, RFQ, or other formal request as well as State or County forms, affidavits, and presentation materials.
California is a dual licensing state, meaning both a local and state California Cannabis License is required before operations can be fully licensed to commence. Applicants must first receive approval and licensing from their city or town before approaching the State for licensure. At the State level, Cannabis is governed by the Department of Cannabis Control.
Dual licensing requirements, renewal process, and general timelines vary from jurisdiction, however, State licensing is consistent for all applicants. Commonly the formal licensing application is supported by business plans, operational plans, and security overlays.
California is a dual licensing state, meaning both a local and state California Cannabis License is required before operations can be fully licensed to commence. Applicants must first receive approval and licensing from their city or town before approaching the State for licensure. At the State level, Cannabis is governed by the Department of Cannabis Control.
Dual licensing requirements, renewal process, and general timelines vary from jurisdiction, however, State licensing is consistent for all applicants. Commonly the formal licensing application is supported by business plans, operational plans, and security overlays.
8483
Cultivation
873
Retail Storefront
379
Delivery
27
Labs
1080
Distribution
909
Manufacturing
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Some of the World’s Largest Brands have Trusted CLE to Support their Cannabis Journey.
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Financial Requirements - California Cannabis License
Many States and local jurisdictions require a certain level of liquidity, cash on hand, and /or CPA and/or Bank letters to ensure that applicants have the financial wherewithal from the licensing process through to the initial 2-5 years of operations. Commonly a 3-5 year Financial Pro Forma is also required. Financial requirements typically include a minimum amount of liquid cash on hand and/or CPA letter. This is common for most jurisdictions as a mandatory part of the application. General minimum requirements for license applications is a 2-3 year Pro Forma
Steps to increase your chances of obtaining a cannabis license in California
Understand the regulations: Familiarize yourself with California's cannabis laws and regulations, which are subject to change. The California Bureau of Cannabis Control (BCC) oversees the licensing process, and you should stay updated with their requirements. Choose the right license type: California offers various license types, such as cultivation, manufacturing, distribution, retail, and testing. Determine which segment of the industry you want to be involved in and apply for the appropriate license. Create a solid business plan: Develop a comprehensive business plan that outlines your goals, financial projections, operational strategies, marketing plans, and compliance strategies. Demonstrating a well-thought-out plan can impress the licensing authorities. Establish a suitable location: Choose a location that complies with local zoning regulations and is not in proximity to schools, parks, or other sensitive areas as required by state laws. Assemble a qualified team: Put together a team with experience and expertise in the cannabis industry. This includes individuals with knowledge of compliance, horticulture, business management, security, and legal matters. Secure funding: Obtaining a cannabis license can be expensive, and you'll need adequate funding to cover the application fees, start-up costs, and ongoing expenses. Complete the application thoroughly: The application process requires attention to detail. Fill out all the necessary paperwork accurately and provide all required documents. Missing information can lead to delays or rejections. Comply with local requirements: California allows local municipalities to have their own cannabis regulations. Ensure you are in compliance with both state and local regulations. Demonstrate commitment to social equity: If your business promotes social equity objectives, such as supporting communities affected by the War on Drugs or offering employment opportunities to individuals from impacted communities, it may improve your chances of winning a license. Prepare for inspections: Be ready for inspections to ensure your business meets all safety, security, and operational requirements. Address concerns and feedback: If your application receives feedback or concerns, address them promptly and professionally. Being responsive shows your dedication and willingness to comply.
California Cannabis License Types
All license types, including consumptions lounges, events licensing, and distribution. Vertical operations available in some areas.
| Specialty Cottage Outdoor | up to 25 mature plants |
|---|---|
| Specialty Cottage Indoor | up to 500 sqft of canopy |
| Specialty Cottage Mixed Light tier 1 and tier 2 | up to 2,500 sqft of canopy |
| Specialty Outdoor | up to 50 mature plants or up to 5,000 sqft of canopy |
| Specialty Indoor | 501 to 5,000 sqft of canopy |
| Specialty mixed-light tier 1 and tier 2 | 2,501 to 5,000 sqft of canopy |
| Small Outdoor | 5,001 to 10,000 sqft of canopy |
| Small Indoor | 5,001 to 10,000 sqft of canopy |
| Small Mixed-light Tier 1 and Tier 2 | 5,001 to 10,000 sqft |
| Medium Outdoor | 10,001 sqft to 1 acre of canopy |
| Medium Indoor | 10,001 to 22,000 sqft of canopy |
| Medium Mixed-light Tier 1 and Tier 2 | 10,001 – 22,000 sqft of canopy |
| Large | Large size cultivation licenses cannot be issued until after Jan 1. 2023 |
| Nursery License | Specific to cultivators who only grow clones, immature plants, seeds, and/or other forms of cannabis used for propagation |
| Processor License | Specific to the activities of trim, cure, dry, grade, package or label cannabis |
Manufacturing License Types: Manufacturing licenses are designated by activity and extraction types.
| Type 7 | Volatile Solvent Manufacturing |
|---|---|
| Type 6 | Non-Volatile Solvent Manufacturing |
| Type N | Infusion of products |
| Type P | Packaging and Labeling |
| Specialty Indoor | 501 to 5,000 sqft of canopy |
| Type S | Shared Use Facility |
| Type 10 | Storefront Retailer |
|---|---|
| Type 9 | Non-storefront Retailer / Delivery Only |
| Type 11 | allows for cannabis to be moved between license types and premises |
|---|---|
| Type 13 | Transport-only distributor |
- Type 8
Type 12 Microbusiness license is for businesses that engage in three seperate licensed activities in one location.
Cultivation License Types
Cultivation license types are designated by the license activity, facility type, and/or size.
| Specialty Cottage Outdoor | up to 25 mature plants |
|---|---|
| Specialty Cottage Indoor | up to 500 sqft of canopy |
| Specialty Cottage Mixed Light tier 1 and tier 2 | up to 2,500 sqft of canopy |
| Specialty Outdoor | up to 50 mature plants or up to 5,000 sqft of canopy |
| Specialty Indoor | 501 to 5,000 sqft of canopy |
| Specialty mixed-light tier 1 and tier 2 | 2,501 to 5,000 sqft of canopy |
| Small Outdoor | 5,001 to 10,000 sqft of canopy |
| Small Indoor | 5,001 to 10,000 sqft of canopy |
| Small Mixed-light Tier 1 and Tier 2 | 5,001 to 10,000 sqft |
| Medium Outdoor | 10,001 sqft to 1 acre of canopy |
| Medium Indoor | 10,001 to 22,000 sqft of canopy |
| Medium Mixed-light Tier 1 and Tier 2 | 10,001 - 22,000 sqft of canopy |
| Large | Large size cultivation licenses cannot be issued until after Jan 1. 2023 |
| Nursery License | Specific to cultivators who only grow clones, immature plants, seeds, and/or other forms of cannabis used for propagation |
| Processor License | Specific to the activities of trim, cure, dry, grade, package or label cannabis |
Regional Cannabis Markets
Because of its size, the state has been broken down into three separate regions below.
Northern California
Home of the Emerald Triangle and the birthplace of modern cannabis legalization, the Northern California market is unmatched in quality of products, passionate Master Growers, and innovative operators with over 20 years running some of the first dispensaries in the country. Along with this rich history of grassroots individuals also comes old habits and reluctance to join a legal, regulated, and taxed cannabis.
Southern California
Home of the Emerald Triangle and the birthplace of modern cannabis legalization, the Northern California market is unmatched in quality of products, passionate Master Growers, and innovative operators with over 20 years running some of the first dispensaries in the country. Along with this rich history of grassroots individuals also comes old habits and reluctance to join a legal, regulated, and taxed cannabis.
Inland / Rural California
In the recent past many inland, rural communities within the state have traditionally banned cannabis operations with moratoriums, lack of licensing structures, and/or temporary bans. This stems from the fact that many black market growers and illegal operators have used these farming areas to conceal unregulated cultivations and grow operations moving product to out of state black markets across the country.
| Additional Information | |
|---|---|
| Online Submission Portal | Varies from County to County |
| State Online Submission | Yes |
| Basic Demographic Information | |
| Resources include the US Census Bureau, City-Data.com, and any additional relevant resources. | |
| Total # of Counties | 58 |
| Total # of Cities/Towns | 481 *cities (459) and towns (22) |
Los Angeles
37
Median Age
$72K
Medial Income
$880K
Median Home Price
$950 - $1500M
Fair Market Rent
San Francisco
38
Median Age
$110k
Medical Income
$1.2MM
Median Home Price
$1,950M
Fair Market Rent
10,039,107
Country Population in 2019
Business Climate
Overall, the majority of the state has embraced the formal legalization of cannabis for both medical and recreational use. With few notable exceptions, licensing of all cannabis operations continues to be moving at a reasonable pace.
According to national organization rankings, California ranks poorly on indexes focusing on taxes and costs. Although the state’s employment, wages, and output continue to grow, there are many persistent political and social issues that affect the state’s ability to provide an inviting business environment.
According to national organization rankings, California ranks poorly on indexes focusing on taxes and costs. Although the state’s employment, wages, and output continue to grow, there are many persistent political and social issues that affect the state’s ability to provide an inviting business environment.
Real Estate & Zoning
Consideration for regional and local zoning with regard to allowed proximity to certain business types, schools, and other prohibited areas should be researched according to local and municipal rules. Possession of real estate is often a requirement for licensing prior to application submission.
The following are a list of significant cannabis locations by City and/or County. Further details can be provided on each location in a further detailed report, per client and license specific review.
The following are a list of significant cannabis locations by City and/or County. Further details can be provided on each location in a further detailed report, per client and license specific review.
- The Emerald Triangle: Mendocino, Humboldt, and Trinity Counties
- Wine Country: Sonoma County, Napa Valley, and Santa Rosa
- City of Modesto
- City of Turlock
- Nevada County and Grass Valley.
- City of Oakland
- County and City San Francisco
- City of West Hollywood
- City of San Diego
- City of Santa Cruz
- City of Los Angeles
- City of Temecula
- City of Fresno
One-Stop Business Solutions Provider
When you partner with CLE, you are able to leverage our proven knowledge and best industry resources to provide you a complete Cannabis Business Solution.
- LICENSING
- REAL ESTATE SEARCH
- DESIGN & BUILD
- SECURITY
- DIGITAL MARKETING & DEVELOPMENT
- EQUIPMENT TENDERING
- INTELLECTUAL PROPERTY PROTECTION
- Banking & Insurance
- Merger & Acquisitions
- Private Label Manufacturing
- Micro-Grow Franchising
- Human Resources
Frequently Asked Questions
How much does a dispensary license in California cost?
California is a dual licensing state meaning that there are separate licensing processes for local and state permitting. At the state level a cannabis dispensary licenses non-refundable application fee is $1,000 with an annual licensing fee ranging from $2,500 – $96,000 depending on the store’s gross annual revenue. To get an understanding of local licensing fees as well as licensing requirements please book a consultation with the Cannabis License Experts team.
Can you sell edibles in California?
Yes, licensed manufacturers are permitted to produce cannabis infused edibles for sale to adults 21+. The production of edibles requires either a type n, type 6, or type 7 manufacturing license. THC infused edibles are limited to 10mg servings with a cap of 100 mg per product.
Does California have a social equity program for cannabis licensing?
While California does not have a social equity program for cannabis at a state level, individual municipalities offer social equity licensing and potential funding for eligible applicants. Two notable cities include Los Angeles and Oakland.
Is there a limit to the number of licenses I can own in California?
No, California does not have a limit on the number of licenses one owner or interest holder can have. The exception is they do not allow owners of testing labs to have ownership in other license types.
Are applications currently being accepted for commercial cannabis facility licenses?
Yes, the Department of Cannabis Control accepts commercial cannabis licensing for retail storefront, retail non-store front, distribution, manufacturing and cultivation on an ongoing basis. It’s important to make sure that you are checking with your local municipality in which you would like to locate this business to ensure that they are accepting commercial cannabis license applications. If you’d like to learn more about what cities allow commercial cannabis facilities please book a consultation with our team.
What license do you need to grow cannabis in California?
California’s Department of Cannabis Control issues all cultivation licensing at the state level. Specific cultivation licenses are broken down into tiers based on cultivation type and canopy size. The first step in figuring out what license you need is determining what type of cultivation you will be doing, cultivation types are generally categorized as outdoor, indoor and mixed-light greenhouse. Local municipalities have licensing requirements that are separate from the Department of Cannabis Controls application process.
Don't Know Where To Begin? Get Started Now
Applications are accepted on a rolling basis at the state level and new jurisdictions are consistently developing ordinance’s designing the framework for licensing at the local level.
CLE can develop a preliminary business and feasibility plan to help give an understanding of business viability within the local climate. We also provide you with insights and develop strategies with respect to facility design, construction, security compliance and digital marketing to get you sales ready.
In order to get started, reach out to one of our regulatory experts today to learn more about Cannabis Business Solutions.
