California Cannabis Licensing

CALIFORNIA CANNABIS LICENSING

The California Department of Cannabis Control (DCC) is the agency responsible for developing regulations for medical and adult-use cannabis in California implementing the Medicinal and Adult‐Use Cannabis Regulation and Safety Act (MAUCRSA) contained in division 10 of the California Business and Professions Code (§26000 et seq.).

For more about cannabis law see California Cannabis Law, or for recent legislative developments in the area of California cannabis law, see the cannabis bills under consideration by the California state legislature.

The DCC was established in 2021 pursuant to a budget trailer bill (AB 141) passed by the California Legislature which, among other things, consolidated the then existing state cannabis licensing authorities into a single California Department of Cannabis Control.  Those licensing agencies were the Bureau of Cannabis Control (BCC), the CalCannabis Cultivation Licensing division of the California Department of Food and Agriculture (CDFA), and the Manufactured Cannabis Safety Branch of the California Department of Public Health (CDPH).  The California Department of Food and Agriculture retained the Cannabis Appellations Program, as well as the OCal Program which will establish standards for cannabis comparable to the National Organic Program.

The DCC works directly with the Cannabis Advisory Committee, a group of twenty-two people appointed to advise on the development of standards and regulations.

The DCC is responsible for processing of all licenses for commercial cannabis businesses including cultivation, manufacturing, distribution, testing laboratories, retail and cannabis events.  It is also responsible for the implementation of the California Cannabis Track and Trace System (CCTT) to track the movement of all commercial cannabis from seed-to-sale.  For a comprehensive description of the CCTT see California Cannabis Track and Trace System.

Cannabis manufacturing includes extraction from cannabis using volatile solvents (ex: butane, hexane, pentane), extraction using a non-volatile solvent or mechanical method (ex: food-grade butter, oil, water, ethanol, or carbon dioxide), infusions of a pre-extracted oil to create edibles, beverages, capsules, vape cartridges, tinctures or topicals, and packaging and labeling of commercial cannabis products.

The California cannabis industry began operating under permanent California cannabis regulations beginning in January 2019.  California cannabis businesses were previously subject to emergency cannabis regulations adopted by the the BCC, the CDFA, and the CDPH.  California cannabis regulations continue to evolve and regulatory compliance requires significant diligence on the part of cannabis businesses.

A local (city or county) cannabis license is a prerequisite to obtaining a California state cannabis license.  Most cities and counties still ban cannabis businesses, but many welcome cannabis businesses.  Local cannabis laws and regulations vary.

Wondering which city or county to expand to next, or to start your cannabis business?  We provide insight on local jurisdiction opportunities that fit your business strategy, and guidance on the licensing process including assistance with applications for permits and licenses.

Contact us to learn more about state or local cannabis licensing.