- A copy of the applicant's license or other authorization issued by the local jurisdiction, if the jurisdiction has established an ordinance, rule, or regulation in accordance with Business and Professions Code (BPC) Section 26055(h) requiring discretionary review and approval of permits, licenses, or other authorizations to engage in commercial cannabis activity.
- Certified copies of the Notice of Determination or Notice of Exemption, as well as the CEQA documentation. If the applicant does not want to submit a copy of the license, permit, or other permission granted by the local authority, the applicant may offer one.
- If an applicant lacks the evidence specified above, or if the local jurisdiction did not create a CEQA document, the applicant is responsible for producing an environmental document that conforms with CEQA and that the Bureau may accept or certify, unless the Bureau says otherwise.
- This covers all entities in a multi-tiered corporate structure, chief executive officer, members of the board of directors, partners, trustees, and all individuals who have authority over a trust, as well as managing members or non-member managers of the entity. Each entity identified as having a financial interest is required to reveal the names of people who also have financial interests, until only individuals remain.
- If an entity has a financial interest: all individuals who are owners of that entity must be considered financial interest holders of the business. This includes all entities in a multi-tiered corporate structure, chief executive officer, members of the board of directors, partners, trustees, and all other individuals who exercise authority over a trust, as well as managing members of non-member managers of the entity.
- Each entity identified as having a financial interest is required to reveal the names of people who also have financial interests, until only individuals remain
- An employee who has agreed to participate in a profit-sharing arrangement with a commercial cannabis business.
- A landlord who has agreed to share earnings with a commercial cannabis business in exchange for a lease.
- A consultant who provides services to a commercial marijuana business in exchange for a percentage of the earnings.
- A person working as an agent for the commercial cannabis business, such as an accountant or attorney, in exchange for a percentage of the earnings.
- A broker who engages in commercial cannabis business operations in exchange for a cut of the earnings.
- A commission-based salesman
- Boundaries of the property. If just a part of the land is utilized for cannabis business purposes, the applicant must identify the other portions and specify their use.
- If the premises are situated on a part of the land that also contains a home, the diagram must clearly indicate the distinction between the premises and the house.
- Dimensions of all rooms and the premises.
- Entrances, exits, and walls under the exclusive control of the applicant as well as designated entrances and exits for each additional premises. The diagram must also show all common or shared areas of the property; lobbies, hallways, bathrooms, and break rooms.
- Partitions, windows, and doors on the inside.
- The cannabis activity that will take place in each section of the property must be described. Commercial cannabis activities that must be shown on the diagram include, but are not limited to, the following: storage, batch sampling, shipment loading/unloading, packing and labeling, client sales, delivery loading, extractions, infusions, growing, and/or processing.
- Areas with restricted access. Defined as locations that are used to store or hold cannabis products that are exclusively accessible to a licensee, its employees, and contractors.
- The location and number of each camera
- Trusts: Certificate of Trust authorizing the Trustee to act as Trustee.
- General Partnership: Statement of Partnership Authority, Partnership Agreement, and Tax Forms.
- Limited Partnership: Certificates of Limited Partnership, Operating Agreements, Partnership Agreements, and tax forms.
- Corporation: Articles of Incorporation, Information Statement, Stock Certificate, Stock Ledger, Organizational Charts, Bylaws, and Board of Directors List.
- Limited Liability Company: Statement of Information, Articles of Organization, and Operating Agreements.
- Foreign Corporation or Foreign Limited Liability Company: California Secretary of State-issued Certificate of Qualification, Statement and Designation by Foreign Professional Corporation, Certificate of Registration, or Certificate of Status.
- Sole Proprietor: Filing of a Fictitious Business Name form with the local business permit agency, as well as tax documents. The paperwork must support the kind of company structure, the legal business name, and the ownership percentages of the owners.
- Transportation Procedures: Describes the applicant's proposed method for transporting cannabis safely. If applicants do not intend to transport cannabis themselves, they must indicate that they intend to contract for transportation.
- Inventory Procedures: Outlines how the applicant will receive cannabis shipments, store its inventory, do inventory reconciliation, verify inventory records are correct and keep inventory records.
- Quality Control Procedures: Describes how the applicants will prevent cannabis products from deteriorating, how they will guarantee cannabis goods are packed and labeled correctly, and how they will ensure the product was tested by a registered Testing Laboratory.
- Security Procedures: Describes how the applicant will provide access to the premises. Additionally, it details the applicant's video surveillance system, which includes camera location and equipment maintenance. These procedures outline the applicant's security measures for all entry points, including the employment of security staff and a description of the applicant's alarm system.
- Retailer or Retailer-non-storefront:
- Delivery procedures - This describes how the applicant will receive and process orders, confirm the receiving customer's age and identity, and verify that the delivery location is not on publicly owned property or in a building leased by a public agency. Additionally, the protocols must detail how cannabis products will be transported, including vehicle and GPS information.
- Distributor or distributor-transport only: A Certificate of Insurance demonstrating that general liability insurance in the aggregate of no less than $2,000,000 has been obtained, and in the amount of no less than $1,000,000 for each loss. The insurance coverage must be acquired from an insurer that complies with Business and Professions Code Section 5308.
- Attachment A-Cultivation
- Microbusiness Cultivation Plan
- Attachment B-Manufacturer
The DCC licensing system enables you to save your application progress throughout the online application process, so you are not required to finish it in one sitting. When you are through with your application, you will be asked to sign and submit it. The DCC will not process your application until the application fee has been paid. If any part of your application has insufficient or incomplete information, you will receive an email notification from the DCC licensing team. You will be informed of the missing information in the mail from the DCC. Additionally, you will be given a time limit in which to reply. By providing the necessary information on time, you can ensure that your application is processed promptly by the DCC.
The DCC reviews microbusiness license applications in the order in which the applications are received. The application review process takes time, while DCC staff carry out the following actions:
- Ascertain the completeness of your application
- Confirm compliance with local regulations by contacting the city or county where your company is situated
- Conduct a criminal background check on your company proprietors, if applicable
- Consider if an excessive concentration exists in the area where the license intends to operate. Any excessive concentration applies when the ratio of retail licenses or microbusiness licenses to the population within the census tract, census division, or jurisdiction exceeds what is permitted under local ordinances adopted pursuant to the California Business and Professions Code Section 26200.
- Examine the information you provided to ensure that your business complies with all applicable regulations.
The DCC will not process an application that is not complete. Applications will be considered complete only if they include all required information. If an applicant fails to provide the required information within the specified period, the application is deemed abandoned. Application fees are non-refundable for abandoned applications. An applicant who has abandoned an application may reapply at any time. However, a new application and fee will be required.
Following the DCC's approval of your application, you will get an email from the DCC with information on how to pay the licensing fee. To determine the proper licensing fee, the applicant must first estimate the total income expected over the license's 12-month term. The applicant must select the appropriate tier group for their expected gross income based on the license type requested, as specified in the DCC Regulations Section 15014.
The licensing fee may be paid by cheque, money order, or credit card. Cash payments may also be done in person at the DCC office by scheduling an appointment. Cash payments are not accepted without prior appointments due to security concerns. Your license will be granted only when the licensing fee has been paid.
If the fee is paid by debit or credit card, it will be processed via the DCC's online licensing system, and the applicant will be responsible for any processing or convenience costs incurred by the third-party vendor processing the payment on behalf of the DCC. California regards non-payment of the required license fee to be cause for punishment. If it is found that the licensee paid is less than the proper licensing price, the licensee will be required to pay the remaining fee plus a penalty equal to 50% of the applicable licensing cost; however, the DCC may waive the penalty fee at its discretion.
If an application is denied, the DCC will inform the applicant in writing of the denial and the applicant's right to a hearing to contest the decision. The applicant may seek a hearing by filing a written petition to the DCC within 30 calendar days after the notice of denial being sent. If the applicant does not seek a hearing within 30 days, the applicant waives the entitlement to one.
It is important to note that an applicant may withdraw an application at any point prior to the DCC issuing or denying the license application. The applicant must submit a dated and signed written request to the DCC in order to withdraw an application. The DCC will not refund application fees for applications that are withdrawn.
A microbusiness license is valid for one year. When your license is authorized, the DCC licensing system will provide you with a link to download the license certificate. It is recommended that you place your microbusiness license certificate at the entrance to your establishment.
If applicants prefer to complete their applications in person, they may complete the Annual Cannabis Microbusiness License Application form and submit it along with the required documents to:
Department of Cannabis Control
Sacramento, CA 94271-2872
How Much Does a Marijuana Microbusiness License Cost in California?
Cannabis microbusiness license fees in California are based on the gross annual revenues generated by the cannabis businesses. License and application fees are:
Gross Annual Revenue Application Fee License Fee Less than or equal to $1,000,000 $1,000 $5,000 $1,000,001 - $2,000,000 $1,000 $12,000 $2,000,001 - $3,000,000 $1,000 $20,000 $3,000,001 - $4,000,000 $1,000 $32,000 $4,000,001 - $6,000,000 $1,000 $45,000 $6,000,001 - $7,000,000 $1,000 $60,000 $7,000,001 - $10,000,000 $1,000 $80,000 $10,000,001 - $20,000,000 $1,000 $100,000 $20,000,001 - $30,000,000 $1,000 $120,000 $30,000,001 - $40,000,000 $1,000 $140,000 $40,000,001 - $50,000,000 $1,000 $160,000 $50,000,001 - $60,000,000 $1,000 $180,000 $60,000,001 - $80,000,000 $1,000 $220,000 More than $80,000,000 $1,000 $300,000 The gross annual revenue of a licensed premises is calculated using the gross annual sales of cannabis products and, if applicable, the gross annual revenue from manufacturing, labeling, packaging, or handling cannabis products for other licensees in the 12 months preceding the application date. Gross annual income is determined for a new license application based on gross sales and revenue anticipated over the first 12 months after licensing.
Cannabis microbusiness licenses are renewable every year. The license fee corresponding with the licensing tier category identified by a licensee based on the expected gross annual revenue over the next 12-month period will be the renewal fee.
Can Marijuana Microbusiness Licensees Hold Other Cannabis Licenses in California?
A microbusiness license already permits the holder to cultivate, manufacture, distribute, and operate a retail storefront or delivery dispensary. The licensee cannot hold a testing laboratory license or an event organizer license.
Microbusiness licensees may add a commercial cannabis activity to their license or remove a commercial cannabis activity from their license if doing so is consistent with the requirement outlined in Section 15500(a) of the Department of Cannabis Control Regulations.
Microbusiness licensees must not engage in any new commercial cannabis activity until they have paid for the modifications and received approval from the DCC. Microbusiness licenses are not transferable from one premises to another. Licensees are not allowed to operate out of new premises until they have been issued new licenses.
