Getting a license from the California Department of Cannabis Control to sell cannabis or cannabis products is a complex process. The California Department of Cannabis Control (DCC) is the state agency responsible for regulating commercial cannabis activity in California, including overseeing licensed businesses ranging from your corner mom-and-pop dispensary to large-scale cultivation businesses selling tens of thousands of pounds of flower per year. The DCC works to ensure that businesses involved in the cannabis industry comply with all applicable laws and regulations while providing a safe, secure, and compliant cannabis market for consumers, businesses, and local governments.

I want a weed license. What is the first step?

The first step to getting into the California cannabis industry is to stay connected with the DCC. The DCC website is the best resource for staying up-to-date on the latest cannabis regulations and licensing requirements. The DCC also provides information for potential cannabis business owners, including a licensing guide and a list of frequently asked questions.

Know what type of commercial cannabis activity you want to engage in.

The next step to getting a permit in the marijuana industry is to determine the type of license needed. The DCC currently issues 18 cannabis licenses, including cultivation, manufacturing, distribution, testing, and retail licenses. Depending on the type of cannabis business desired, a business owner may need to obtain multiple licenses before operating.

Once the license type(s) needed are determined and assuming an applicant has already obtained local authorization, the applicant must prepare to submit an application. The DCC requires all prospective businesses to submit a completed application form and supporting documents before the agency will even review the records. This includes proof of local approval, a valid photo ID, a business plan, and a description of the proposed cannabis activities. The application must also include a fee based on the type and size of the license.

Once the application is complete, the applicant must submit it to the DCC for review. The DCC will review the application to ensure it is complete and accurate. The DCC will then verify the applicant’s information and approve or deny the application.

If the application is approved, the applicant will receive a license. The DCC will provide the applicant with a license to engage in commercial cannabis activity in California legally. The license will also give the applicant access to the state’s legal cannabis market, including Metrc, California’s state-mandated software required track and trace the flow of cannabis products.

Finally, applicants must stay connected with the DCC. The DCC will provide updates on the latest cannabis regulations and will also provide resources for cannabis business owners. This includes information on how to obtain additional licenses, such as large cultivation licenses, and how to stay compliant with the law.

Should aspiring cannabis businesses be intimidated?

No. Getting licensed in California is a complex process, but the DCC stated purpose is to create a safe and equitable cannabis market. The DCC is also working to support equity cannabis businesses, which are businesses owned by individuals who have been disproportionately affected by the war on drugs.

Following the steps outlined above and staying connected with the DCC, cannabis business owners can obtain a cannabis license in California and legally engage in commercial cannabis activity. With the ability to create a compliant and profitable cannabis business, applicants can access the state’s legal cannabis market and provide cannabis products to consumers.

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Contact us today to begin your journey!

They Regulate Commercial Cannabis Activity in California

The DCC California, commonly referred to as the California Department of Cannabis Control (DCC), is a state agency that regulates commercial cannabis activity in California. The department was established in 2017 as part of the state’s efforts to support equity cannabis businesses and ensure a fair and regulated marijuana market.

Under state law, the DCC has the authority to issue and revoke licenses for businesses that engage in commercial cannabis activity. This includes cultivators, manufacturers, distributors, retailers, microbusinesses, and testing laboratories. The DCC also oversees the tracking of cannabis from seed to sale, to ensure that cannabis and cannabis products are safe for consumers and in compliance with state regulations.

Large Cultivation Lcienses

One of the recent challenges facing the DCC is the issue of large cultivation licenses. In California, these licenses are granted to businesses that grow more than 22,000 square feet of cannabis. These large cultivation licenses have been criticized for hindering the growth of equity cannabis businesses, which are often owned by small-scale cultivators or those from disadvantaged communities.

To address this issue, the DCC has proposed a new set of regulations limiting the number of large cultivation licenses and making it easier for equity cannabis businesses to obtain licenses. The proposed regulations would also require larger cultivators to enter into “impact agreements” with local governments, in which they would agree to provide financial support and other assistance to equity cannabis businesses.

DCC California Supports Equity Businesses

The DCC has also implemented several tools to support equity cannabis businesses. This includes a “social equity program” that provides financial, technical, and other support to business owners disproportionately affected by the war on drugs. The DCC has partnered with local organizations to provide business development services and help equity cannabis businesses navigate the licensing process.

Cannabis Safety

In addition to supporting equity cannabis businesses, the DCC plays a crucial role in ensuring that all commercial cannabis activity in California is conducted safely and in compliance with state law. The department works closely with law enforcement agencies to enforce regulations and ensure that cannabis products are adequately tested and labeled. The DCC also conducts regular inspections of licensed businesses to ensure they comply with state regulations.

Contact Us to Apply for a DCC Cannabis License

Overall, the California Department of Cannabis Control plays a vital role in regulating the state’s cannabis industry and supporting equity cannabis businesses. The department’s efforts to implement fair and effective regulations and to support business owners disproportionately affected by the war on drugs have helped create a more equitable and sustainable marijuana market in California.

Contact our office at info@baghoomianlaw.com or (818) 514-9272 if you want to apply for a DCC cannabis license.

The cannabis industry is one of the fastest-growing industries in California, and if you are thinking about getting involved, there are a few things you need to know. In this blog post, we will give you an overview of different cannabis license types, what you need to know before getting involved in the cannabis business, and some key ideas for you to consider if you decide to enter the industry.

What You Need to Know Before Getting Involved in the Cannabis Industry.

There are a few things a prospective applicant should consider before getting involved in the cannabis industry, including the legal landscape and the different types of businesses that make up the industry. In our experience, the most critical differentiator that separates successful cannabis businesses from others is a solid business plan that accounts for and appreciates the risks associated with starting a business in a constantly changing industry.

Who Regulates Commercial Cannabis Activity? The California Department of Cannabis Control.

This Department is responsible for regulating the commercial cannabis industry in California, including licensing and enforcement. The Department of Cannabis Control (DCC) ensures that all businesses comply with state laws and regulations regarding selling, transporting, distributing, and testing of cannabis and cannabis products. In addition, the DCC regulates the manufacturing, packaging, labeling, advertising, and tracking of cannabis products.

The DCC also works with local governments to ensure they are taking steps to regulate commercial marijuana activity within their boundaries. For example, a cannabis business typically will not receive a cannabis license form the DCC unless a city or county government has notified the DCC that the business has sufficient local approval to engage in commercial cannabis activity. This is just one of many areas where the DCC works in cooperation with hundreds of local agencies.

California Cannabis License Types

The first question new market entrants typically ask us is, “what cannabis licenses are available?” A simple list includes:

Retailer (Storefront)

Retail licenses, also called Type 10 licenses, Retailer (Storefront) licenses are for those cannabis businesses that want to run a brick-and-mortar dispensary. However, applicants should be aware that a local jurisdiction is under no obligation to issue a retailer license. Many local jurisdictions have either banned dispensaries or limited the issuance of these licenses to only a handful of businesses. The main reason is local police departments routinely instill fear in city council members that commercial cannabis activities conducted by storefront retailers will attract crime to the retail premises.

Retailer (Non-storefront)

Type 9 Licenses (Non-storefront) are for those businesses that want to sell cannabis products to consumers through delivery only. While delivery services do need a physical location to operate out of, no cannabis products cannot be displayed on the business premises. Moreover, the business is prohibited from allowing any customers into any areas where business activities take place. Retailer (Non-storefront) license holders will still need a location for their business to hold their inventory and serve as a hub for their delivery driver employees.

Distributor

The Type 11 license is the most common cannabis license. Distributor licenses allow cannabis businesses to transport cannabis products between licensees. For example, a distributor may use its cannabis license to lawfully transport cannabis products from a cultivator to a manufacturer or to a retail licensee.

Distributors may also: (1) arrange for testing of cannabis goods; (2) conduct quality assurance review; (3) package, re-package, label, and re-label for retail sales; and (4) provide storage services for cannabis accessories, licensees’ branded merchandise or promotional materials, and packaged cannabis goods as they will be sold at a retailer.

Distributor (Transport Only)

A Type 13 license is a unique type of cannabis business. A typical Type 13 cannabis business will employ ex-law enforcement or military professionals experienced in armed transport. A type 13 licensee may transport cannabis goods between licensees but is restricted toonlytransporting cannabis goods. Type 13 licensees are not allowed to engage in any of the additional activities listed above for a Type 11 license.

Manufacturing

Manufacturing licenses are associated with the extraction or distillment of cannabis. Manufacturers also package flower and roll/package pre-rolls on their licensed premises.

Previously, manufacturing licenses were issued by the department of public health. Due to the inherent risk of fire or explosions, a company’s manufacturing premises is always given a strict review by the DCC, with even minor issues delaying licenses for several months. For example, issues like the placement of flammable gas, carbon dioxide sensors, the storage of plant material, and cannabis product are each reviewed by both line analysts and supervisors.

There are five (5) different types of commercial cannabis activity associated with a manufacturing license:

Type 7:

Type 7 licensees may manufacture cannabis using volatile solvents such as butane, hexane, or propane. The use of volatile solvents is typically subject to strict oversight and a vigorous local approval process. A Type 7 license allows a license holder to conduct activities of a Type 6, N, or P license.

Type 6:

Type 6 licensees may manufacture cannabis using non-volatile solvents or perform extraction using mechanical methods. Type 6 licensees may also conduct activities of a Type N or P license.

Type N:

Type N licenses are for manufactures that want to infuse cannabis. Type N licensees may also conduct Type P activities.

Type P:

Type P licensees may only package or label cannabis products. A Type P licensee may only conduct Type P activities.

Type S:

Type S licenses are for manufacturers operating on a registered shared-used facility. The shared-use manufacturing facility must be approved before Type S licensee may submit license applications.

Cultivation:

The most sought-after cannabis business. Cultivation licensees are for those that want to grow cannabis. Currently, the state has 14 different cannabis licenses, differentiated by light source and size. Cultivation licenses encompass Type 1, Type 1A, Type 1B, Type 2, Type 2A, Type 2B, Type 3, Type 3A, Type 3B, Type 4, Type 5, Type 5A, and Type 5B. Type 5, 5A, and 5B is reserved for “Large” sized cultivation operations (greater than 22,000 sq. ft. of total canopy) and will not be issued prior to January 1, 2023.

Microbusiness:

Also called a Type 12 license, a Microbusiness license allows the licensee to engage in vertical integration. All microbusiness licensees must conductat least three (3)of the six (6) possible activities: (1) Retailer (Storefront); (2) Retailer (Non-storefront); (3) Distributor; (4) Distributor (Transport Only); (5) Cultivation less than 10,000 sq. ft of canopy; and (6) Level 1 Type 6 Manufacturer.

Testing Laboratory:

Also called a Type 8 license, Testing Laboratory licensees are permitted to perform testing of cannabis goods. Testing laboratories must obtain and maintain ISO/IEC 17025 accreditation; they may be issued a provisional license allowing them to operate while obtaining accreditation, so long as they meet all other requirements.

Event Organizer:

This is a license required for those looking to organize cannabis events. A Cannabis Event Organizer Licensee may apply for a Temporary Cannabis Event License for a specific event the licensee wishes to hold. A Temporary Cannabis Event License is required to hold a temporary cannabis event where onsite sale and consumption of cannabis goods is authorized at the located indicated on the license. A Temporary Cannabis Event License will only be issued to an Event Organizer licensee.

Contact Us Now to Learn More About Different Cannabis License Types!

There are a few things you need to know before getting involved in the cannabis industry, including the legal landscape and different types of businesses that make up this rapidly growing sector. With a solid business plan and an understanding of the risks involved, you can be well on your way to starting a successful business in this exciting industry! Contact us today!

What is cannabis licensing?

California offers a unique opportunity for businesses looking to enter the cannabis industry. The state is home to a large and growing market for legal cannabis products, and it has a well-established regulatory framework in place.

However, getting a license to operate a cannabis business in California is not a simple process. There are a number of requirements that must be met, and the application process can be complex. Here are some things you should know if you’re considering applying for a cannabis license in California.

Different licenses for different activities.

You will need to choose the type of license you need. There are different licenses for cannabis businesses, including growers, manufacturers, retailers, and delivery services. Each license type has its own requirements, so be sure to research the requirements for the license you’re interested in before beginning the application process.

Information and Records.

Once you’ve chosen the type of permit you need, you’ll need to gather the required information and documents. This includes things like proof of business ownership, tax information, and local permits. You’ll also need to submit an extensive business plan that outlines your proposed operation. After gathering all of the required materials, you can begin filling out your application. The application process can be lengthy, so be prepared to spend some time on it.

After your application is submitted online, it will be reviewed by the Department of Cannabis Control. If the Department of Cannabis Control approves your application, you’ll be issued a license and will be able to operate your cannabis business in California legally. However, if additional information is required by the Department of Cannabis Control, you will receive a notice for more information before a final approval is considered or issued.

California cannabis local authorization

To obtain a state cannabis license in California, you’ll need local authorization from the city or county where you intend to operate your business. This process can vary depending on the locality, but it typically involves submitting an application and undergoing a background check. You may also be required to attend a public hearing. Once you’ve obtained local authorization, you can move on to the next step in the licensing process.

What are common complaints from applicants?

The most common complaints from applicants are cost, delays, and confusion.

Costs

Legal cannabis operations are expensive. It seems like every day a business receives a new notice from the Department of Cannabis Control requesting additional information or informing the licensee of a new change in regulations that impacts anything from compliance to operations.

Delays

The Department of Cannabis Control, the agency that regulates commercial cannabis activities, is notorious for delays. Applicants experience delays when they apply for their licenses, and when they apply to have their licenses renewed annually.

Commonly, an applicant will gripe that their online account isn’t being timely updated, or even worse, that their online account has crashed and there is no technical assistance to help them. Many applicants will complain that even though their application is complete, final approval isn’t issued for weeks or months.

Confusion

Why is the processing of my application taking so long and when will it be complete?

When will I get my approval?

Who do I send my local approval to?

Where do I send my CEQA report?

Is there anyone at the DCC who can provide me with assistance?

These are all questions and concerns people express while their application is undergoing processing.

Ok, but do I absolutely need a license before engaging in commercial cannabis activity?

Yes. Every person or business that wants to engage in commercial cannabis activity, whether for distribution, manufacturing, or processing, must undergo the licensing approval process. There are no exceptions. Every applicant should wait until it receives final legal approval before it engages in commercial cannabis activity of any type, otherwise, it can expose themselves to prosecution.