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California Cannabis License Overview
California’s Department of Cannabis Control (DCC) regulates and oversees the state’s cannabis industry to ensure public health and safety. Aside from enforcement and oversight of compliance, DCC also issues and manages licenses of cannabis businesses. Ever since its creation in July 2021, the bureau has accepted applications and renewals for provisional licenses.
To help businesses join the legal market, the DCC created a provisional license program. This enables businesses to operate while their full state application is being processed. Initially set to end in January 2020, the State extended the program to January 2022, to give businesses more time to meet requirements. Provisional and annual licenses are essentially the same. They have the same validity cycles, fees, and same laws and regulations to follow. As of February 2025, there are approximately 6800 annual license holders and 1600 provisional license holders in the state of California.
As of January 1, 2025, DCC no longer renews provisional licenses. To move forward to an annual license, those holding provisional licenses must fulfill all annual obligations and adhere to the renewal conditions outlined in the California Code of Regulations (CCR) sections 15001.2 and 15020. DCC regulations also provided a timeline for future licensing deadlines:
- January 1, 2026—Expiration of any provisional DCC license (not including local equity retailers)
- January 1, 2031—Last day for DCC to issue provisional licenses to local equity retailers (non-storefront and storefront).
Types of Cannabis License in California
- Cultivation License
- Manufacturing License Types
- Distribution License
- Testing Laboratory License
- Retail License
- Microbusiness License
- Event Licenses
How Profitable is the Cannabis Market in New York?
The New York cannabis market is extremely profitable in 2024. As of the end of May 2024, there has been NY cannabis market growth of over %1000 since May 2023. In May 2023, NY retail dispensaries sold 6.7 million dollars of cannabis and cannabis products, while May 2024 saw 46.2 million in sales.
How Do I Get Into the Cannabis Industry in New York?
You can get into the cannabis industry in New York by exploring cannabis business opportunities and applying for the appropriate license. Getting your cannabis business license is the first step in opening a cannabis business in New York. Licenses can be applied for during open application periods. Alternatively, licenses can be purchased and sold in New York.
Are Cannabis Sales Increasing in New York?
Cannabis sales are drastically increasing in New York during 2024. There has been significant cannabis market growth in NY, and the state has now hit 357.3 million dollars in retail sales. The state also hit a record-high average of weekly cannabis and cannabis product sales in May, with an average of 12.5 million dollars each week.
Are Cannabis Dispensaries Profitable in New York?
Yes! Legal cannabis dispensaries are seeing record high profits with every passing month. As illicit stores are shut down and more legal cannabis dispensaries appear in the New York cannabis market, sales are drastically increasing as consumers decide to opt for certified legal products. Consumers will also have to make the switch to legal dispensaries as the state continues to close down on illicit stores, while more legal stores are opening.
Cultivation License
The cannabis cultivation license in California is classified based on the production method, lighting used, and the number of plants or canopy size. (Canopy size refers to the area where mature flowering plants grow.) The cultivation types are:
Specialty cottage
- Specialty cottage outdoor—up to 25 mature plants or up to 2,500 square feet of canopy
- Specialty cottage indoor—up to 500 square feet of canopy
- Specialty cottage mixed-light tier 1 and 2—up to 2,500 square feet of canopy
Specialty
- Specialty outdoor—up to 50 mature plants or up to 5,000 square feet of canopy
- Specialty indoor—501 to 5,000 square feet of canopy
- Specialty mixed-light tier 1 and 2—2,501 to 5,000 square feet of canopy
Small
- Small outdoor—5,001 to 10,000 square feet of canopy
- Small indoor—5,001 to 10,000 square feet of canopy
- Small mixed-light tier 1 and 2— 5,001 to 10,000 square feet of canopy
Medium
- Medium outdoor—10,001 square feet to 1 acre of canopy
- Medium indoor—10,001 to 22,000 square feet of canopy
- Medium mixed-light tier 1 and 2—10,001 to 22,000 square feet of canopy
Large
- Large outdoor—up to 1 acre of total canopy
- Large indoor—up to 22,000 square feet of total canopy
- Large mixed-light - mixed-light site with up to 22,000 square feet of total canopy
Nursery
Allows for the cultivation of clones, immature plants, seeds, or other types of cannabis used for propagation.
Processor
For trimming, sifting, curing, drying, grading, packaging or labeling cannabis
Indoor vs Outdoor vs Mixed-Light Cultivation Licenses
Indoor cultivation licenses in California are for cultivators who grow cannabis in a controlled environment (i.e. facility) with artificial lighting of at least 25 watts per square foot.
Outdoor cultivation licenses in California are for cultivators who grow cannabis outside.
Mixed-light licenses are for cultivators who grow cannabis with a combination of natural sunlight and artificial light. Examples are greenhouse, glasshouse, conservatory, hothouse, etc. Mixed light has two tiers based on the amount of artificial light used:
- Tier 1—Up to 6 watts per square foot
- Tier 2—6-25 watts per square foot
Cannabis Manufacturing License in California
Note: Starting in Spring 2025, per DCC regulations, manufacturing licenses that currently begin with “CDPH” will be relabeled to use the acronym “DCC.”
Manufacturing license types depend on the activities conducted, the chemicals used for extraction and other processing activities, and whether the manufacturer works in a shared facility. There are five types of cannabis manufacturing license in California:
Type 7: volatile solvent manufacturing
The Type 7 Manufacturing license allows manufacturers to:
- Use volatile and non-volatile solvents for extraction and processing. (Volatile solvents include flammable gas or vapor. Examples include, but are not limited to: butane, heptane, hexane, and propane.)
- Use mechanical methods for extraction.
- Make cannabis products through infusion.
- Package and label cannabis products.
Type 6: non-volatile solvent manufacturing or mechanical extraction
In which, manufacturers:
- Use non-volatile solvents for extraction or post-extraction processing. (Nonvolatile solvents do not produce flammable gas or vapor. Examples include, but are not limited to: ethanol, carbon dioxide, cooking oils, and butter.)
- Use mechanical methods for extraction. (Mechanical extraction uses pressure, heat, or cold to extract cannabinoids without chemicals, such as rosin presses and dry ice.)
- Make cannabis products through infusion
- Package and label cannabis products
Type N: infusion of products
The Type N Manufacturing license allows manufacturers to:
- Make cannabis products using infusion
- Package and label cannabis products
Type P: packaging and labeling
This manufacturing only allows for the packaging and labeling of cannabis products.
Type S: manufacturers who work in a shared facility
The Type S Manufacturing license allows manufacturers to:
- Operate in shared-use facilities.
- Extract cannabis using food-grade oils, water, glycerin, or mechanical methods, as well as make cannabis products through infusion
- Package and label products.
- Share space and equipment with other manufacturers on a rotating schedule. (Type 7, 6, or N licenses can register part or all of their premises as a shared-use facility.)
Distribution License
There are two types of distribution license in California:
Type 11: distributor
In which, distributors can:
- Transport cannabis and products between cultivation, manufacturing, or distribution sites
- Move finished cannabis products to retail locations
- Offer storage services to other licensees
- Coordinate testing of cannabis products
Type 13: transport-only distributor
Testing Laboratory License
The Type 8 license, or Testing Laboratory License, is for laboratories that test cannabis before it’s sold. Laboratories must have ISO/IEC 17025 accreditation but can use an interim license while getting accredited.
Retail Licenses
Type 9: non-storefront retailer (delivery only)
A non-storefront retailer or Type 9 California cannabis license holder sells cannabis goods exclusively through delivery.
Type 10: storefront retailer
Microbusiness License
The DCC microbusiness license or Type 12 license is for businesses that do at least three of the following at one location:
- Cultivation (up to 10,000 sq ft)
- Manufacturing (using non-volatile solvents, mechanical extraction, or infusion)
- Distribution or transport-only distribution
- Retail (storefront or non-storefront)
Event Licenses
There are two types of cannabis event licenses:
- Event organizer – for the person hosting the event
- Temporary cannabis event – for the event itself
Only a licensed event organizer can hold cannabis events.
Eligibility Criteria for DCC License Applicants
Businesses applying for a California cannabis license need to make sure individuals on the application meet the eligibility requirements. Applicants must be:
- 21 years of age or older
- willing to undergo background checks
- willing to follow federal, state, and local laws
Additional eligibility requirements may also be required by the DCC and the local committee of the municipality the business is applying for.
Requirements For All License Types in California
To obtain a DCC license, applicants must verify some pertinent information about the business and its owners, and also provide proof of financial stability and capability to operate a business. The DCC has provided a comprehensive California cannabis license application checklist on its website.
Applicants must provide the following information:
- Applicant's legal first and last name (owner)
- Legal business name of the cannabis business
- Business trade name(s), fictitious name(s), and DBA(s), if any
- DCC License type you're applying for
- License type designation (medicinal, adult-use, or both, if applicable)
- Physical address or assessor's parcel number
- Business mailing address (if different)
- The phone number for the business
- Website for the business, if any
- Number used for federal taxes (FEIN, EIN, ITIN, TIN, SSN, or NIN)
- Contact info for the business owner (name, title, phone, email)
- Contact info for agent for service of process (if any)
- Business organizational structure (e.g., LLC, partnership, corporation)
- Valid seller’s permit number (or attest you’re applying for one)
- State Employer Identification Number (SEIN), if applicable
Applicants must upload the following information:
- Proof that you have legal rights to the property.
- Premises diagram. (A guide from DCC has been provided on their website.)
- Proof of a $5,000 surety bond (per premises), payable to California.
- Limited waiver of sovereign immunity, if applicable.
- Evidence of California Environmental Quality Act (CEQA) compliance, if applicable.
- If the business is a foreign corporation/LLC, a certificate of qualification from the California Secretary of State must be provided.
- List of all business owners.
- List of all financial interest holders.
- (Optional) Copy of any local license, permit, or authorization. The local jurisdiction must confirm the validity within 10 days.
Additional Documents:
The state of California requires a labor peace agreement (LPA) if the commercial cannabis business has 10 or more employees. The business must provide either a notarized statement agreeing to follow an LPA or a signed copy showing it already has one. If there are fewer than 10 employees, the business must have an LPA within 60 days of hiring the 10th employee.
The DCC will also ask for other pertinent documents, depending on the DCC license type applied for.
The Department may also request other documents not accessible by the State during the application review process. This may include operating agreements, bylaws, certificates of trust, etc.
How To Apply for a Cannabis License in California
In California, applicants must obtain both state and local licenses. A business can only begin operations once both licenses are approved. Before submitting state license applications, it is important to communicate with their local jurisdiction to complete all local permitting processes. Here are the steps set by the DCC to secure a state cannabis license:
1. Complete local permitting processes
Check if your city or county allows cannabis businesses and follows any local permitting rules before applying for a state cannabis license.
2. Be knowledgeable about state regulations for cannabis businesses
The State has made its cannabis laws and bylaws accessible via the DCC website. Business plans must adhere to these.
3. Prepare the documents
DCC has a list of forms required for the license application. Businesses need to download and fill them out accordingly
4. Create a licensing system account
DCC has two licensing systems, depending on the license type you’re applying for. Cultivation license uses the CLS portal, while all other DCC license types use the CLEaR portal.
5. Complete your application
Fill out the required fields and upload the documents. Disclose all owners and financial interest holders. Applicants can save their progress and finish later. Once done, sign and submit the application.
6. Pay your application fee and submit the application fee
Upon submission, DCC prompts the applicant to pay the application fee. The Department will only process the application when the application fee is paid.
7. If needed, answer emails from DCC
DCC allows applicants to rectify incomplete applications within a given time. Applicants should respond promptly.
8. Once approved, pay the license fee
Pay the license fee through the licensing system using a bank account, check, money order, or credit card. Cash payments can be made by scheduling an appointment to visit the office in person.
9. Post license
Once a business receives its license, download it from the licensing system. Businesses should display the certificate visibly near the entrance.
How To Renew a Cannabis License
Businesses can only renew licenses starting 60 calendar dates before the expiration date. All licenses must follow the renewal requirements set by CCR section 15020. Provisional licensees must meet specific criteria to ensure they’re ready for an annual license. The CCR website provides the criteria summary, outlined in Section 15001.2. For all DCC license types, here are the steps to follow when renewing your license:
1. Wait for the renewal window to begin
While the DCC sends out automated emails once renewal windows open, licensees must note the 60 days before expiration and prepare requirements ahead of time.
2. If needed, review and update your information
Verification of ownership and financial interest is required during renewal. If there have been changes, please use the Notification and Request to Modify a License Form (DCC-LIC-027).
3. The present report on annual gross revenue
Licensees must present proof of their gross revenue during the previous year. DCC accepts tax returns filed with the California Department of Tax and Fee Administration (CDTFA) or a Profit and loss (P&L) statement. (This isn’t mandatory for cultivators and event organizers.)
4. Complete the renewal application and pay the renewal fee
5. Replace the old license with the updated one
Once approved, the updated license certificate will be available for download. Replace the posted old license with a new one.
Fees For Cannabis License Application and Renewal in California
There are two types of fees for cannabis licenses:
- Application fees: Paid when you submit your application. The DCC reviews your application after receiving this fee.
- License fees: Paid once your application is approved. The DCC issues your license after this fee is paid, and it is also due annually when renewing the license.
Fees depend on the license type and are usually based on your business’s gross annual revenues, which is the total income before expenses. State law sets cannabis fees to cover the DCC’s oversight costs and to be higher for larger businesses. The application and license fees are based on recommendations from economists who studied the cannabis industry in California.
For the complete and updated list of fees, visit DCC’s website.
How To Apply for Equity Fee Relief
Note: The fee waiver funding for all applicants, including those in local equity programs, has been exhausted. However, retailers and DCC microbusiness license applicants/holders involved in retail activities can still submit a fee waiver request for review to qualify for vendor compensation through the CDTFA.
The DCC can waive license fees and renewal fees for cannabis equity businesses as long as they meet the eligibility criteria. Along with a completed fee relief request form, applicants must submit verification documents for review by the local equity program. Businesses must ensure:
- At least half of the business owners meet the equity criteria:
- Convicted or arrested of a cannabis offence before November 8, 2016
- Household income is less than or equal to 60% of the Area Median Income.
- Residence was in a neighborhood disproportionately affected by cannabis prohibition from 1980 to 2016.
- It has a gross revenue of $5 million or less per year.
For New Applicants:
1. Start online license application.
Use the appropriate licensing system for your license type.
2. Signify your application for fee relief
When submitting, select Yes to express interest in equity fee relief.
3. Upload the fee relief request form
Download and complete the fee relief request form with information about business equity owners.
4. Submit your application
For License Renewals:
1. Fill out the form
Download and complete the fee relief request form with information about business equity owners.
2. Prepare tax documentation
DCC asks for proof (i.e., tax documentation) to show the gross revenue is under $5 million.
3. Submit the completed form
Submit your completed form to equity@cannabis.ca.gov no later than 60 days before your license expiration date.
The DCC encourages equity applicants to submit complete applications promptly. If the DCC defers the fee relief request, the business should practice due diligence and pay the required fees within six months of issuance or renewal.
Why Work with CannDelta?
Ready to start your cannabis business in California? At CannDelta, we specialize in guiding you through the state’s complex regulatory environment. Our expert team, with years of experience in the cannabis industry, will help you navigate the licensing process and set your business up for success. Here’s what we offer:
California Cannabis License Applications:
Enter the cannabis market confidently. We provide comprehensive support in preparing, submitting, and monitoring your license application to ensure compliance and competitiveness.
Business Plan Development:
Build a solid foundation for your cannabis business. We develop business plans that meet regulatory requirements and promote sustainable growth.
Security Plan:
Our specialists develop thorough security plans that protect your assets, comply with state regulations, and offer peace of mind.
Site Audits and Inspections:
Stay proactive with our detailed site audits. We identify potential issues and offer practical solutions to maintain compliance and efficiency.
Standard Operating Procedures:
Enhance daily operations with a tailored operating plan to boost efficiency. We develop clear, compliant SOPs that facilitate smooth business operations.
Marketing Plan:
Make your brand stand out! We help build your brand and create outreach strategies to establish your presence in California’s cannabis market.
Employee Staffing and Training Plan:
Our recruitment strategies and customized training programs ensure your team is prepared to excel in the cannabis industry.
Fill out the form below to connect with our cannabis consultants today!
Frequently Asked Questions
How Do I Get A Distribution License In California?
Applicants for Cannabis Distribution Licenses in California must secure both state and local licenses. Only after both licenses receive approval can a business start. Before applying for the state license, it’s important to complete all local permitting requirements. The State’s step-by-step application process for distributors:
- Review state cannabis regulations on the DCC website
- Prepare required documents
- Create a licensing system account (CLEaR portal for distribution license)
- Fill out the application form with all required fields and documents
- Pay the application fee. ($1000 for Type 7, 6, N, and P licenses and $500 for Type S licenses)
- Respond promptly to DCC emails if needed.
- Pay the license fee once approved. (DCC calculates license fees based on a business's gross annual revenue.)
How Much Is A Grow License In California?
Cultivation licensees in California encounter two types of fees: application and license fees. Application fees for cultivation licenses range from $135 to $8,655, depending on the production method and the canopy size you signify in your application. Base cultivation license fees range from $1205 to $77,905. License fees may increase depending on the canopy size. For an accurate estimate, check DCC’s website or contact cannabis experts like CannDelta for tailored advice based on your business needs and revenue.
How Do I Get A Dispensary License In California?
To apply for a CBD License in California, applicants must meet eligibility requirements and obtain both state and local licenses. Whether you’re cultivating, manufacturing, selling, or transporting CBD products, the application process follows the steps set by the Department of Cannabis Control (DCC):
- Determine which license type should you apply for.
- Start the local permitting process. (Approach your city or municipality to start the paperwork.)
- Review state cannabis regulations on the DCC website.
- Prepare the required documents.
- Create a licensing system account (Cultivation license uses the CLS portal, while all other DCC license types use the CLEaR portal.)
- Fill out the application form with all required fields and documents
- Pay the application fee. (The application fee is specific to the license type you are applying.)
- Respond promptly to DCC emails if needed.
- Pay the license fee once approved. (DCC calculates license fees based on a business's gross annual revenue.)
How Much Does A CBD License Cost In California?
CBD licenses in California encounter two types of fees: application and license fees. Application fees for CBD licenses range from $135 to $8,655, depending on the scope of cannabis activities you’re planning. Base license fees range from $1205 to $300,000. License fees may increase depending on the business’s gross annual revenues and other factors set by the Department of Cannabis Control (DCC). For a precise estimate, check DCC’s website or reach out to CannDelta who can offer customized advice based on your business needs and revenue.
