Open A Dispensary In California - Dispensary Permits Cannabis Consulting and Templates

Status: In California, individuals age 21+ may be in possession of Marijuana, and state licensed businesses may cultivate, manufacture, distribute and sell Marijuana.

CBD Program	Medical Program	Recreational Program	Are Applications Open?
Legal	Legal	Legal	open

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Number of California Marijuana Business Licenses Licenses Available

Dispensaries	Cultivation	Manufacturing/Processing	Transportation
1000+	1000+	1000+	1000+

Every state has different marijuana laws- they are regulated by state, not federal law. Some states allow marijuana for recreational and medical use, some states only allow medical use, and some only allow certain low THC products for medical use. Most states limit the number of licenses they will grant and the window to apply for them. Getting licenced is never simple- there are very specific requirements and guidelines that differ by state and its usually highly competitive, which is why most successful applicants work with consultants like Dispensary Permits to help guide them. We highly advise you read the guidelines below thoroughly and then consider working with a consultant or using our templates and guides.
You can read the full text of the California Marijuana Business Licenses law at: The Bureau of Cannabis Control

California Cannabis Cultivation License Guidelines

Multiple types of Cannabis Cultivation Licenses Available:
- Type 1 – Cultivation; Specialty outdoor; Small.
- Type 1A – Cultivation; Specialty indoor; Small.
- Type 1B – Cultivation; Specialty mixed-light; Small.
- Type 1C – Cultivation; Specialty cottage; Small.
- 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; Outdoor; Large.
- Type 5A – Cultivation; Indoor; Large.
- Type 5B – Cultivation; Mixed-light; Large.
Must apply for a cultivation license with local City AND State
Requirements for cultivation businesses vary from city to city.
Must submit bond in the amount of $5,000 payable to the state of California.
Cultivation facility must be at least 600 ft from a school (K-12, day care, youth center)

RECOMMENDED CALIFORNIA MARIJUANA BUSINESS PLANS FOR CULTIVATION APPLICATION:

California Cannabis Manufacturer License Guidelines

Multiple types of Cannabis Cultivation Licenses Available:
- Type 6 – Manufacturer 1; or extraction using a mechanical method or non-volatile solvent (ex: CO2, ethanol, water, or food-grade dry ice, cooking oils or butter)
- Type 7 – Manufacturer 2; for extraction using a volatile solvent (ex: butane, propane and hexane)
- Type N – Manufacturer; for infusions
- Type P – Manufacturer; for packaging and labeling only
Each license type is inclusive of the types in the list below it. For example, a Type 7 licensee would be able to perform Type 6, N or P tasks. A Type 6 license could perform Type N or P tasks. A Type N licensee would be able to perform Type P tasks.
Must apply for a manufacturer license with local City AND State
Requirements for manufacturing businesses vary from city to city.
Must submit bond in the amount of $5,000 payable to the state of California.
Manufacturing facility must be at least 600 ft from a school (K-12, day care, youth center)

RECOMMENDED CALIFORNIA MARIJUANA BUSINESS PLANS FOR MANUFACTURER APPLICATION:

California Cannabis Retailer License Guidelines

Multiple types of Cannabis Retail Licenses Available:
- Type 9 – Non-Storefront Retailer (Delivery); Sells and delivers cannabis goods to customers. A retailer (nonstorefront) must have a licensed premises, but it is not open to the public.
- Type 10 – Retailer; Sells cannabis goods to customers at its premises or by delivery. A retailer must have a licensed physical location(premises)where commercial cannabis activities are conducted.
Must apply for a retail license with local City AND State
Requirements for retail businesses vary from city to city.
Must submit bond in the amount of $5,000 payable to the state of California.
Retail facility must be at least 600 ft from a school (K-12, day care, youth center)
Retailers may only sell and deliver cannabis from 6:00am – 10:00pm PST.

RECOMMENDED CALIFORNIA MARIJUANA BUSINESS PLANS FOR RETAILER APPLICATION:

California Cannabis Distributor License Guidelines

A Distributor is responsible for transporting cannabis goods, arranging for testing of cannabis goods,and conducting quality assurance review of cannabis goods to ensure they comply with all packaging and labeling requirements.
Must apply for a distributor license with local City AND State
Requirements for distribution businesses vary from city to city.
Must submit bond in the amount of $5,000 payable to the state of California.
Distribution facility must be at least 600 ft from a school (K-12, day care, youth center)
Transport vehicles must have an alarm system and must generate shipping manifest prior to transporting cannabis.

RECOMMENDED CALIFORNIA MARIJUANA BUSINESS PLANS FOR DISTRIBUTOR APPLICATION:

California Cannabis Microbusiness License Guidelines

A Microbusiness license allows a licensee to engage in cultivation (on an area less than 10,000 square feet), manufacturing (Level 1 manufacturing, Type6), distribution, and retail sale,or any combination of the four activities.
Must engage in at least 3 of the 4 activities that must be identified during application submission for a license.
Licensees will be required to comply with all rules and regulations, which will include, where applicable, regulations adopted by the California Department of Food and Agriculture and the California Department of Public Health, governing the activities they are engaged in.
Must apply for a distributor license with local City AND State
Requirements for microbusinesses vary from city to city.
Must submit bond in the amount of $5,000 payable to the state of California.
All microbusiness facilities must be at least 600 ft from a school (K-12, day care, youth center)

RECOMMENDED CALIFORNIA MARIJUANA BUSINESS PLANS FOR MICROBUSINESS APPLICATION:

The History of California Marijuana Business Licenses Marijuana

In 1996, California was the first state to legalize medical cannabis but fell short on providing consistently safe regulations for medical cannabis related businesses. As a result, local governments regulated the medical cannabis businesses within their city limits.

On October 9, 2015, Gov. Jerry Brown signed 3 bills that collectively established a statewide regulatory system for medical cannabis businesses. There are 17 different business licenses available, and the number of licenses allowed will be determined by local governments that regulate the program.

In November of 2016 the Adult Use of Marijuana Act (AUMA), otherwise known as Proposition 64, was passed with 57% voter approval. This legalized marijuana for people 21 years of age and older, allowing them to possess up to an ounce of cannabis and grow up to 6 plants at home for personal use. In addition, beginning on January 1, 2018, the AUMA makes it legal to sell and distribute cannabis through a regulated business.

In June 2017, California integrated the Medical Cannabis Regulation and Safety Act with the Adult Use of Marijuana Act to create the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Under MAUCRSA, a single regulatory system governs the medical and adult use cannabis industry in California.

On September 27, 2018, Governor Jerry Brown signed Senate Bill 1459 into law to permit new, 12-month “provisional” marijuana business licenses to allow existing marijuana companies to continue operating without a permanent license while state and local officials process a backlog of permit applications. In order to receive one of the provisional licenses, an applicant will need a current temporary marijuana business license and must have submitted an application for an annual license to the state.

On January 16, 2019, California’s three state cannabis licensing authorities announced that the Office of Administrative Law (OAL) officially approved state regulations for cannabis businesses across the supply chain. Please note, the new cannabis regulations listed below take effect immediately, meaning the previous emergency regulations are no longer in effect.

On July 1, 2019, Assembly Bill 97 was signed by Governor Jerry Brown to extend the lifespan of provisional business licenses for cannabis companies until 2022. The bill also includes a new $30,000-a-day administrative fine against unlicensed cannabis businesses.