The Basics: Cannabis Business Licensing in L.A.

Starting a cannabis business can provide opportunities for those passionate about joining the industry. Yet, it’s important to do your homework in this heavily regulated market. The City of Los Angeles Department of Cannabis Regulation (DCR) offers a variety of license types across several activities – retail, delivery, testing, cultivation, manufacturing, and distribution. Read on to learn more about each license type.?

Retail Storefront?

The Retail Storefront license permits the sale of cannabis goods through storefront shops – or what are popularly referred to as “dispensaries.” Storefront retailers may also deliver cannabis goods to individuals. These retailers must be located outside a 700-foot radius of sensitive use areas – such as schools, public parks, or libraries. This specific license type is limited to Social Equity Individual Applicants (SEIA) until December 31, 2025.?

Retail Delivery

The Retail Delivery license permits the sale of cannabis goods through delivery service only. This license type is restricted, and in-person, on-site, and off-site kiosk sales for on-site pickup are strictly prohibited. This license type is also restricted to SEIAs until December 31, 2025.?

Testing Lab

Testing Lab licenses are required to use the State of California Department of Cannabis Control’s (DCC) standardized test methods and operating procedures. Testing labs check for contaminants and label products with accurate amounts of cannabinoids and terpenes before being sold. Applications for testing lab licenses are currently open and available to all.?

Cultivation

Cultivation licenses permit the growing and harvesting of cannabis plants. In Los Angeles, outdoor cultivation is prohibited. Though the City offers various indoor cultivation license types, applications are not currently being accepted.?This license type is restricted to SEIAs until December 31, 2025.?

Manufacturing

Manufacturing licenses permit the extraction of cannabinoids and terpenes from cannabis plants to make products. DCR offers several manufacturing licenses – non-volatile (which includes infusion, packaging, and shared-use), and volatile. Applications for non-volatile manufacturing licenses are open and available to all, while volatile manufacturing licenses are not currently being accepted.?

Distribution

The Distribution license permits the transport of cannabis goods between cultivation, manufacturing, and distribution premises. Licensed distributors can also move finished cannabis goods to retail premises, provide storage services to other licensees, and arrange for the testing of productions. Applications for distribution licenses are currently open and available for all.?

If you’re interested in applying for a license or have questions, reach out to [email protected] or call (213) 978-0738 to speak to a DCR representative. You can also find more information on DCR’s website.