California Marijuana License

California legalized medical cannabis in 1996 and adult-use cannabis for adults 21 and over in 2016 (Proposition 64). Since 2021, a single agency, the Department of Cannabis Control (DCC), licenses and regulates all commercial cannabis activity.

State licensing is only half the process: every business must also have permission from the city or county where it operates, and many localities still ban some or all cannabis businesses. Unlike some states, California does not cap the total number of state licenses.

• Retail: storefront or non-storefront (delivery-only)
• Cultivation: multiple tiers by canopy size and light type, plus nursery and processor
• Manufacturing: extraction (solvent or non-solvent), infusion, packaging and labeling
• Distribution: including transport-only
• Testing laboratory
• Microbusiness: three or more activities under one license
• Cannabis event organizer

• Local authorization from the city or county
• Registered business entity and disclosure of all owners and financial interest holders
• Property rights to the premises and a compliant site plan
• Security and track-and-trace (METRC) compliance
• CEQA environmental review documentation
• Owners must pass Live Scan background checks

• Application fee: $1,000 for most license types (cultivation fees vary)
• Annual license fee: scaled to gross annual revenue for most types; for example, distribution licenses run from $1,500 to $240,000
• Cultivation: annual fees scale with canopy size and type
• Underpayment can trigger a 50% penalty on the correct license fee

Local permit fees and taxes are additional and vary widely by city or county.

1. Confirm your city or county allows the license type and secure local approval or proof it is in progress.
2. Secure a compliant property.
3. Create an account in the DCC online licensing system and submit the application, owner disclosures and fee.
4. Respond to DCC deficiency notices and complete CEQA review.
5. Pay the annual license fee once approved; renew yearly.

• Adults 21+ may buy and possess up to 28.5 grams of flower and 8 grams of concentrate
• Medical patients 18+ with a physician recommendation have additional allowances
• All products must be tested, tracked in METRC and packaged to state standards
• Local governments can prohibit commercial cannabis activity

• California resident with a physician's recommendation for a serious medical condition (including cancer, chronic pain, glaucoma, migraine, seizures and others) or any condition that limits major life activities
• Patients 18 and older; minors need a parent or guardian

1. Get a written recommendation from a California-licensed physician.
2. Apply for a state Medical Marijuana Identification Card (MMIC) through your county health department.
3. Provide proof of residency, ID and the fee.
4. The card exempts you from state sales tax on medical cannabis at licensed retailers.