California Cannabis License Update

In California, commercial cannabis activities require both a state license from the Department of Cannabis Control (DCC) and a local license or permit from the city or county where the business operates. Local jurisdictions have significant authority to regulate or prohibit cannabis businesses, resulting in a patchwork of policies across the state. Below is an overview of cities and counties currently offering cannabis licenses, the types of licenses available, and jurisdictions considering offering licenses in the coming months, based on available information and trends up to May 2025. Call Attorney Damian Nassiri at Cannabis Law Group today to discuss your licensing options. 949-375-4734

Cities and Counties Currently Offering Cannabis Licenses

The following is a compilation of cities and counties known to offer cannabis licenses, along with the types of licenses available, based on recent data and regulatory updates. Note that specific license availability may depend on application windows, zoning restrictions, and local ordinances, which can change frequently. Always verify with local jurisdictions and the DCC for the most current information.

Cities Offering Cannabis Licenses

Los Angeles:
- License Types: Cultivation, manufacturing, distribution, testing, retail (storefront and non-storefront/delivery), microbusiness.
- Details: Los Angeles has a robust cannabis market with a Licensing and Social Equity Program. The Department of Cannabis Regulation (DCR) accepts applications for delivery, distribution, non-volatile manufacturing, and testing lab licenses, with open application periods announced periodically. Retail licenses are limited, with a focus on social equity applicants. As of 2024, Los Angeles County could approve up to 25 additional retail stores.
- Contact: DCR at (213) 978-0738 or DCR.ADMIN@lacity.org.
San Diego:
- License Types: Cultivation, manufacturing, distribution, testing, retail (storefront and non-storefront), microbusiness.
- Details: San Diego permits a variety of cannabis businesses, with a focus on retail expansion. The city has been issuing licenses for storefront and delivery operations, and San Diego County could license 20–40 additional retailers based on recent ballot measures. Applications are subject to zoning and conditional use permits (CUPs).
- Contact: City of San Diego Development Services Department.
Sacramento:
- License Types: Cultivation, manufacturing, distribution, testing, retail (storefront and non-storefront).
- Details: Sacramento County has been expanding its cannabis market, with potential for 10–20 additional retail licenses. The city issues permits for various activities, with a merit-based application process and social equity considerations.
- Contact: Sacramento Office of Cannabis Management.
Santa Rosa:
- License Types: Cultivation, manufacturing, distribution, retail, microbusiness.
- Details: Santa Rosa requires a local land use permit (Zoning Clearance or CUP) and a state license. The city supports a range of cannabis activities, with ongoing application processes for compliant businesses. Provisional licenses are available to streamline entry.
- Contact: Santa Rosa Planning Staff.
Corona:
- License Types: Retail (storefront and non-storefront), distribution, manufacturing, testing labs, microbusiness (non-storefront).
- Details: Corona limits storefront retail to 12 permits (including microbusinesses) through a merit-based process. Non-storefront retail, distribution, manufacturing, and testing labs have no numerical limits but require separation from sensitive land uses (600–1,000 feet). Applications are ongoing, with recent ordinances clarifying processes.
- Contact: Corona Planning Division at (951) 736-2262 or CannabisInfo@CoronaCA.gov.
Costa Mesa:
- License Types: Retail (storefront), distribution, manufacturing, testing labs.
- Details: Following a 2020 voter-approved tax measure, Costa Mesa is awarding 10–15 retail permits. Other licenses (distribution, manufacturing, testing) are also available, with conditional use permits approved for retail storefronts. Full implementation may extend into 2025 due to regulatory delays.
- Contact: Costa Mesa Planning Division.
Fresno:
- License Types: Cultivation, manufacturing, distribution, retail (storefront), microbusiness (non-retail).
- Details: Fresno is selecting 21 retail permit winners and issuing licenses for cultivation, distribution, and non-retail microbusinesses. The city excels in smoke-free policies and equity licensing, with applications open for various activities.
- Contact: Fresno Planning Department.
Pomona:
- License Types: Retail (storefront and delivery), distribution, manufacturing, cultivation, testing.
- Details: Pomona topped the 2024 Public Health Institute scorecard for its innovative cannabis policies, including equity licensing and youth protection measures. The city issues licenses for a range of activities, with a focus on health and equity.
- Contact: Pomona Planning Division.
Santa Ana:
- License Types: Cultivation, distribution, manufacturing, testing, retail (storefront).
- Details: Santa Ana has an open application process for cultivation, distribution, manufacturing, and testing labs. Retail licenses are limited by zoning and CUP requirements. Applicants are encouraged to schedule pre-submittal appointments.
- Contact: Santa Ana Planning Division at (714) 647-5804 or cannabis@santa-ana.org.
Chico:
- License Types: Retail (storefront), distribution, manufacturing.
- Details: Chico is awarding three retail licenses and permits for distribution and manufacturing. Applications are processed based on local zoning and compliance with state law.
- Contact: Chico Community Development Department.
Fairfield:
- License Types: Retail (storefront), manufacturing, testing labs.
- Details: Fairfield has awarded four retail permits and several manufacturing licenses, with applications open for testing labs. The city is part of the expanding Bay Area cannabis market.
- Contact: Fairfield Planning Division.
Daly City:
- License Types: Retail (storefront), testing labs.
- Details: Daly City is issuing six retail permits and testing lab licenses, with applications processed through local zoning and permitting processes.
- Contact: Daly City Planning Department.
Grass Valley:
- License Types: Retail (storefront), testing labs, manufacturing, nurseries, distribution.
- Details: Grass Valley is accepting applications for one retail permit and licenses for testing labs, manufacturing, nurseries, and distribution, with a deadline noted in 2021 but likely ongoing for non-retail licenses.
- Contact: Grass Valley Planning Department.

Counties Offering Cannabis Licenses

Santa Barbara County:
- License Types: Cultivation, manufacturing, distribution, retail, testing, microbusiness.
- Details: The County Executive Office Cannabis Division oversees licensing under Chapter 50 of the County Code. The county permits a range of cannabis activities in unincorporated areas, with applications subject to environmental and water board requirements.
- Contact: Santa Barbara County Cannabis Division.
Lake County:
- License Types: Cultivation, processing, distribution, retail, microbusiness.
- Details: Lake County issues Cannabis Use Permits and Pre-Applications (limited to 12 per month). Licenses differ from state types and require water quality enrollment with the Regional Water Quality Control Board. Recent ordinances address cultivation and processing structures.
- Contact: Lake County Cannabis Division at cannabis@lakecountyca.gov.
Ventura County:
- License Types: Cultivation, distribution.
- Details: Unincorporated Ventura County allows cultivation (up to 500 acres for general cannabis and 100 acres for indoor nurseries) and distribution following voter approval of Measure O in 2020. Applications opened in 2021 and remain ongoing.
- Contact: Ventura County Planning Division.
Humboldt County:
- License Types: Cultivation, manufacturing, distribution, retail, testing, microbusiness.
- Details: Humboldt is one of the most permissive counties, allowing all state license types in unincorporated areas. The county has a high score for cannabis-friendly policies, with ongoing licensing for various activities.
- Contact: Humboldt County Planning and Building Department.
Monterey County:
- License Types: Cultivation, manufacturing, distribution, retail, testing.
- Details: Monterey County permits a range of cannabis businesses in unincorporated areas, with zoning restrictions and a 5% gross receipts tax for retailers. Licensing is ongoing, with a focus on compliance with state regulations.
- Contact: Monterey County Cannabis Program.
Sonoma County:
- License Types: Cultivation, manufacturing, distribution, retail, testing, microbusiness.
- Details: Sonoma permits various cannabis activities in unincorporated areas, with two cities scoring high for lenient policies. Applications are subject to local ordinances and environmental reviews.
- Contact: Sonoma County Cannabis Program.

Cities and Counties Considering Offering Licenses in the Coming Months

While specific plans for new license offerings in 2025 are less detailed in available data, several jurisdictions have been identified as considering or developing cannabis ordinances, which could lead to new licensing opportunities in the coming months. These are based on trends, voter-approved measures, and ongoing regulatory discussions:

Red Bluff (Tehama County):
- Status: Voters were set to decide on permitting recreational cannabis businesses in this historically conservative county. If approved, Red Bluff could begin developing ordinances for retail and other licenses in 2025, potentially opening the first cannabis market in Tehama County.
- License Types Considered: Retail, possibly cultivation or distribution.
- Timeline: Ordinance development could start in 2025, with licensing possibly in 2026.
Ventura (City):
- Status: The City Council has been discussing a cannabis ordinance, with draft regulations recommended by the Planning Commission in 2021. Recent updates suggest continued consideration for retail and other licenses.
- License Types Considered: Retail (storefront and delivery), distribution, manufacturing.
- Timeline: Potential ordinance adoption in 2025, with licensing to follow.
Unincorporated Los Angeles County:
- Status: Currently, all commercial cannabis activities are prohibited in unincorporated areas. However, the Board of Supervisors directed staff to develop cannabis and social equity programs for unincorporated areas, with new ordinances expected in the coming months.
- License Types Considered: Retail, cultivation, distribution, manufacturing, testing.
- Timeline: Ordinances may be proposed in 2025, with licensing potentially starting in 2026.
Other Jurisdictions:
- General Trend: According to MJBizDaily, scores of cities and counties are preparing to issue permits or write ordinances, with at least 18 jurisdictions poised to award licenses following 2020–2021 ballot measures. Cities like Moreno Valley and Davis have passed rules to allow cannabis businesses but are still developing regulations, which could lead to licensing in 2025–2026.
- License Types Considered: Primarily retail, but also cultivation, manufacturing, and distribution in some areas.
- Timeline: Varies, with many jurisdictions expecting implementation in 2025–2027 due to regulatory and permitting delays.

Additional Context and Considerations

Statewide Landscape: As of July 2024, only 31% of California’s 539 cities and counties allow cannabis retail operations, with approximately 1,100 dispensaries and 470 delivery providers statewide. Retail access remains limited in many areas, creating opportunities for new licenses in underserved regions.
License Types Defined by DCC:
- Cultivation: Growing cannabis (nursery, processor, outdoor, indoor, mixed-light).
- Manufacturing: Producing cannabis products (volatile/non-volatile solvents, infusion, packaging/labeling).
- Distribution: Transporting, testing, and wholesaling cannabis products.
- Retail: Storefront (Type 10) or non-storefront/delivery (Type 9).
- Testing: Laboratories for quality and safety testing.
- Microbusiness: Combining at least three activities (e.g., cultivation up to 10,000 sq ft, manufacturing, distribution, retail).
- Event Licenses: For temporary cannabis events with sales or consumption.
Challenges: High capital costs, dual state/local licensing, and local restrictions (e.g., zoning, license caps) can delay market entry. For example, Costa Mesa approved a tax measure in 2020 but had no stores open by 2022.
Social Equity: Many jurisdictions, like Los Angeles, Pomona, and Fresno, prioritize social equity applicants, offering reserved licenses or fee reductions to address historical disparities.
Data Updates: The DCC’s map of licensed jurisdictions (last updated July 2024) provides a detailed view of where specific business types are allowed. Local officials can update data by emailing locals@cannabis.ca.gov.
Verification: Always contact city or county planning departments and check the DCC website (cannabis.ca.gov) for current application windows, fees, and compliance requirements.

Connection to Your Previous Questions

Regarding your earlier inquiries about an LLC member’s duty of loyalty and cannabis wholesaling:

Duty of Loyalty: If you’re considering temporary work in California’s cannabis industry (e.g., with a wholesaler or processor), ensure that such work does not conflict with your LLC’s interests, especially if it involves competing in the same market. For example, working for a processor to produce pre-rolls for your LLC’s wholesale business could be permissible if it aligns with the LLC’s goals and is disclosed to other members, but competing directly (e.g., diverting clients) could breach your duty under California’s RULLCA (Cal. Corp. Code § 17704.09).
Wholesale and Pre-Rolls: As noted in the Oregon analysis, a California wholesale license (Type 11 distribution) allows purchasing and selling pre-rolls but not manufacturing them, which requires a Type 7, 6, N, or S manufacturing license. You could partner with a licensed manufacturer in cities like Los Angeles or Santa Ana to produce branded pre-rolls for your wholesale business, ensuring compliance with DCC packaging and labeling rules (OAR 845-025-7000 equivalents in California).

Recommendations

Verify Local Rules: Contact the planning or cannabis divisions of the listed cities/counties to confirm open application periods and specific requirements (e.g., CUPs, environmental reviews, water board permits).
Monitor Emerging Markets: Track jurisdictions like Red Bluff, Ventura, and unincorporated Los Angeles County for new licensing opportunities in 2025–2026 via local government websites or the DCC’s updates.
Consult Experts: Engage a California cannabis attorney or consultant (e.g., Harris Sliwoski, cited for their expertise) to navigate local ordinances, state compliance, and LLC-related duties.
Check DCC Resources: Use the DCC’s interactive map and license application portal for real-time data on jurisdictions and requirements.