California began issuing licenses for "commercial cannabis activity" on January 1, 2018.
In 2017, California's legislature passed the Medical and Adult Use Regulation and Safety Act, which combined the state's medicinal and adult use cannabis laws into a single system. The MAUCRSA provides a comprehensive regulatory framework for licensing commercial cannabis in California.
- Where do I apply for a license?
- What license types were created?
- What are the fees for licenses?
- Will there be limits on the number of licenses issued?
- Can I vertically integrate?
Where do I apply for a license?
The following agencies issue licenses for commercial cannabis activities:
- Department of Food and Agriculture: Cultivation.
- Department of Public Health: Manufacturing.
- Bureau of Cannabis Control: Distribution, Testing, Retail, and Cannabis Events.
What license types were created?
Cultivation licenses:
- Type 1 = Cultivation; Specialty outdoor;
- Type 1A = Cultivation; Specialty indoor;
- Type 1B = Cultivation; Specialty mixed-light;
- Type 1C = Cultivation; Specialty cottage; (AB 2516, 2016)
- Type 2 = Cultivation; Outdoor; Small.
- Type 2A = Cultivation; Indoor; Small.
- Type 2B = Cultivation; Mixed-light; Small.
- Type 3 = Cultivation; Outdoor; Medium.
- Type 3A = Cultivation; Indoor; Medium.
- Type 3B = Cultivation; Mixed-light; Medium.
- Type 4 = Cultivation; Nursery.
- Type 5 = Cultivation; Unlimited; (Prop. 64, 2016. Not available until 2023)
Other licenses:
- Type 6 = Manufacturer 1.
- Type 7 = Manufacturer 2.
- Type 8 = Testing.
- Type 9 = Non-Storefront Dispensary (delivery).
- Type 10 = Storefront Dispensary.
- Type 11 = Distribution.
- Type 12 = Microbusiness.
- Type 13 = Distribution Transport-Only.
- Type 14 = Cannabis Event Organizer.
What are the fees for licenses?
Current licensing fees are set by the emergency regulations released in June 2018, but may change when new regulations are released. Licensing fees are scaled by size and vary by type of activity.
Cultivation Licensing Fees
| License Type | Application Fee | Annual License Fee |
| Specialty Cottage Outdoor | $135 | $1,205 |
| Specialty Cottage Indoor | $205 | $1,830 |
| Specialty Cottage Mixed-Light Tier 1 | $340 | $3,035 |
| Specialty Cottage Mixed-Light Tier 2 | $580 | $5,200 |
| Specialty Outdoor | $270 | $2,410 |
| Specialty Indoor | $2,170 | $19,540 |
| Specialty Mixed-Light Tier 1 | $655 | $5,900 |
| Specialty Mixed-Light Tier 2 | $1,125 | $10,120 |
| Small Outdoor | $535 | $4,820 |
| Small Indoor | $3,935 | $25,410 |
| Small Mixed-Light Tier 1 | $1,310 | $11,800 |
| Small Mixed-Light Tier 2 | $2,250 | $20,235 |
| Medium Outdoor | $1,555 | $13,990 |
| Medium Indoor | $8,655 | $77,905 |
| Medium Mixed-Light Tier 1 | $2,885 | $25,970 |
| Medium Mixed-Light Tier 2 | $4,945 | $44,517 |
| Nursery | $520 | $4,685 |
| Processor | $1,040 | $9,370 |
Distribution, Retail, Testing, Microbusiness, and Event License Fees
Fees for these license types are tiered by the total value of product tested, distributed, transported, or retailed.
| License Type | Application Fee | Annual License Fee |
| Distributor: <$3,000,000 | $1,000 | $1,200 |
| Distributor: $3,000,000-$12,000,000 | $1,000 | $10,000 |
| Distributor: $12,000,000-$60,000,000 | $1,000 | $50,000 |
| Distributor: $60,000,000-$120,000,000 | $1,000 | $100,000 |
| Distributor: >$120,000,000 | $1,000 | $200,000 |
| Distribution Transport-Only: Self-Distribution: <$3,000,000 | $1,000 | $500 |
| Distribution Transport-Only: Self-Distribution: $3,000,000-$12,000,000 | $1,000 | $1,500 |
| Distribution Transport-Only: Self-Distribution: >$12,000,000 | $1,000 | $4,000 |
| Distribution Transport-Only: <$3,000,000 | $1,000 | $800 |
| Distribution Transport-Only: $3,000,000-$12,000,000 | $1,000 | $2,500 |
| Distribution Transport-Only: >$12,000,000 | $1,000 | $6,000 |
| Retailer: <$750,000 | $1,000 | $4,000 |
| Retailer: $750,000-$2,500,000 | $1,000 | $20,000 |
| Retailer: $2,500,000-$7,500,000 | $1,000 | $64,000 |
| Retailer: >$7,500,000 | $1,000 | $120,000 |
| Microbusiness: <$750,000 | $1,000 | $10,000 |
| Microbusiness: $750,000-$2,500,000 | $1,000 | $30,000 |
| Microbusiness: $2,500,000-$7,500,000 | $1,000 | $100,000 |
| Microbusiness: >$7,500,000 | $1,000 | $180,000 |
| Testing laboratory: <$50,000,000 | $1,000 | $12,500 |
| Testing laboratory: $50,000,000-$400,000,000 | $1,000 | $45,000 |
| Testing laboratory: >$400,000,000 | $1,000 | $90,000 |
| Cannabis Event Organizer: 1-10 events annually | $1,000 | $5,000 |
| Cannabis Event Organizer: >10 events annually | $1,000 | $10,000 |
| Temporary Cannabis Event | $1,000 | N/A |
Manufacturing License Fees
Fees for these license types are tiered by annual gross revenue.
| License Type | Application Fee | Annual License Fee |
| Annual Gross Revenue <$100,000 | $1,000 | $2,000 |
| Annual Gross Revenue $100,001-$500,000 | $1,000 | $7,500 |
| Annual Gross Revenue $500,001-$1,500,000 | $1,000 | $15,000 |
| Annual Gross Revenue $1,500,001-$3,000,000 | $1,000 | $25,000 |
| Annual Gross Revenue $3,000,001-$5,000,000 | $1,000 | $35,000 |
| Annual Gross Revenue $5,000,001-$10,000,000 | $1,000 | $50,000 |
| Annual Gross Revenue >$10,000,000 | $1,000 | $75,000 |
Will there be limits on the number of licenses issued?
CDFA has capped Type 3 (medium cultivation) licenses at one per person, but there are currently no other limits on the number of licenses that can be issued.
Can I vertically integrate?
For the most part, yes. Under the MCRSA, medicinal cannabis legislation passed in 2015, the legislature took a decidedly cautious approach on vertical integration. However, most of these limits were removed in 2016 after the passage of Proposition 64. Vertical integration is now allowed, with the exception of testing laboratories, which are prohibited from holding ownership interest in any other license type.