Marijuana State Licensing
for Commercial Businesses of California
You want to start a Marijuana Commercial Business or your current cannabis business needs to meet State Regulations and Licensing? Our cannabis business attorneys, Pot Brothers at Law has the experience your New Enterprise needs.
Pot Brothers at Law of Orange County, provides Marijuana Business Consulting and Representation to current Marijuana Business Owners or savvy entrepreneurs wanting to start a commercial cannabis business in Los Angeles, Orange, Riverside, San Bernardino, San Diego Counties, and throughout California. Having over 30 years of combined experience , Craig and Marc Wasserman, award winning marijuana lawyers, have made a name for themselves by their extensive knowledge with California's Cannabis Laws for both Medical and Recreational Use of Marijuana. Not only are they political advocates dedication thousands of hours in the legalization and decriminalization of California's Marijuana Industry, serving thousands of clients with representation when it comes to state Regulatory Compliance for commercial marijuana businesses operating in the State of California but Criminal Defense too.
In 2018 recreational marijuana use became legalized through Proposition 64 by the voters in California in November's 2017 elections and the Adult Use of Marijuana Act (AUMA) was now put into effect, having new laws and regulations now governing California's Marijuana Industry with licensing and permits being required to operate commercial marijuana business as well as those who have been operating a non-profit medical use mutual benefit corporation for medical patients and their caretakers with Health and Safety code: 215. Since cannabis law and business services became the Wasserman brothers Key Area of Practice, have a proven track record in gaining local approval for clients in obtaining local permits, and the helping them obtain the state licensing requirements beginning in 2018.
The local permitting process has many facets and stages: educating elected officials, identifying key stakeholders, gaining approval from local elected and private partners to open up the local permitting process, and drawing help from our statewide network of respected and ethical connections – in industry, in government and in the community-based organizations.
We initiate conversations with city attorneys, planning commissioners, and others with control or influence over policy. Because of our positive relationships with members of both political parties, and because of our reputation as straight shooters, we are often able to move those conversations to action.
But as we noted above, local permitting is only the beginning of the process, albeit the harder step, since State licensing is less about changing attitudes and more about whether our clients have the capital, management and administrative skills, and common-sense to meet the State’s relatively stringent requirements. State applicants for state license will have to have a strong team and should be well-funded to meet the objective list of State requirements. There is no lottery and no hard limits on the number of licenses to be issued. And, legally, like a liquor license or a driver’s license, a license to commercially make, cultivate, test or distribute cannabis is a “privilege” that can be taken away if not honestly obtained, nor honesty maintained.
We have listed below for your convenience all the California State Licenses needed for commercial cannabis operators meeting regulatory compliance of AUMA. We are here to assist clients with all aspects of permitting, licensing, compliance and regulations for all types of Cannabis related Businesses.We Can Help
State Licensing (Effective Jan 1, 2018)
Licensing is required for all phases of the cannabis industry including cultivation, testing, manufacture, distribution, transport and retail sales. All cannabis products must be tested by a state-licensed lab and pass though the hands of state-licensed distributors, who also collect taxes on cultivation and retail sales. The following license types are established under state law (BPC 26050):
- Type I "Specialty outdoor"- no artificial lighting, cultivated area less than 5,000 sq ft canopy or 50 plants on noncontiguous plots
- Type 1A "Specialty indoor" - indoor cultivation using exclusively artificial lighting between 501 and 5,000 sq ft.
- Type 1 B "Specialty mixed-light" - combination of natural and artificial lighting between 2,501 and 5,000 sq ft.
- Type 1 C "Specialty cottage" - 2,500 sq ft or less mixed light or up to 25 mature plants outdoors or 500 sq ft indoor cultivation
- Type 2 "Small Outdoor" - no artificial lighting, 5,001 -10,000 sq ft
- Type 2A "Small indoor" - exclusively artificial lighting, 5,001-10,000 sq ft
- Type 2B "Small mixed-light" - 5,001-10,000 sq
- Type 3 "Medium Outdoor" - 10,001 sq ft - one acre (=43,560 sq ft)*
- Type 3A "Medium Indoor" 10,001 - 22,000 sq ft.*
- Type 3B "Medium Mixed-Light" - 10,001 - 22,000 sq ft.*
*The Dept of Food and Agriculture shall limit the number of type 3 licenses
- Type 4 "Nursery" - for cultivation
- Type 5 "Large Outdoor" - cultivation over one acre**
- Type 5A "Large Indoor" - over 22,000 sq ft.**
- Type 5B "Large Mixed-light" - over 22,000 sq ft.**
** No type 5, 5A, 5 B licenses may be issued before Jan 1, 2023.
- Type 6 - "Manufacturer 1" - not using volatile solvents
- Type 7 - "Manufacturer 2" - using volatile solvents
- Type 8 - Testing laboratory" -. May not hold any other kind of licenses.
- Type 10 - Retailer
- Type 11 - Distributor" - responsible for collecting taxes, testing, and transporting to retailers. Retailers must purchase cannabis through a distributor.
- Type 11 - Distributor Transport Only (CA Code of Regulations Section 5014)
- Type 12 - Microbusiness - Combination license to cultivate < 10,000 sq ft, manufacture (Type 6 only), distribute, and retail.
- Event Organizer License (CA Code of Regulations Section 5600).
Persons may hold any combination of licenses, except for testing labs and Type 5 large cultivators, which can hold no other license types.
Application and license fees are established in the CA Code of Regulations by the responsible agencies.