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New Los Angeles City Cannabis Business Licensing System

by Faith Fidura February 05, 2018

Own a Cannabis Business in the Most Sought-After City in California

Los Angeles Cannabis Business LicensingIn California, local governments have authority over the regulation of marijuana businesses. This means cities and counties are able to ban or allow the operation of marijuana businesses within their borders. Therefore, getting city approval is required before applying for a license with the state to become fully able to operate as a legal marijuana business.

In order to properly regulate marijuana businesses and ensure the safety of consumers, the City of Los Angeles has created its own marijuana business licensing system. The Department of Cannabis Regulation (DCR) is the responsible department tasked with administering the business application process and the Rules and Regulations adopted by the City Council.

Top 3 Most Frequently Asked Questions About Los Angeles Cannabis Business

What is the process for licensing cannabis businesses in the City of Los Angeles?

The DCR will process applications for commercial cannabis activity in three (3) phases.

During Phase 1, the DCR will accept and process applications from existing medical marijuana businesses. This is referred to as “Priority M Processing” by the City of Los Angeles.

During Phase 2, the DCR will accept and process applications for Non-Retailer Commercial Cannabis Activity Prior to January 1, 2016.

During Phase 3, the DCR will accept and process applications for Commercial Cannabis Activity for the general public.

Businesses must be in good standing with tax payment, pay applicable fees, submit a complete application, and submit to a pre-licensing inspection.

Are there eligibility requirements to apply?

Yes, there are circumstances in which an applicant would be ineligible to apply for a license. Generally, applicants must have no prior convictions involving specific acts within the last five years.

What types of marijuana businesses does the city allow for?

The City of Los Angeles allows for all marijuana business types except for those involving Outdoor Cultivation and Mixed Light Cultivation.

Need more information?

For an extensive overview, timeline, and informational resources regarding the Los Angeles City licensing process for cannabis businesses, download our Los Angeles City Cannabis Business Guide.