California offers a variety of cannabis licenses to accommodate different business models and operations. These licenses are essential for ensuring compliance with the state’s cannabis laws. Below are the key license types available for cannabis businesses in California:

Retail or Dispensary License

Retail licenses allow businesses to sell cannabis products either through a physical storefront or delivery services.

• Type 9: Non-Storefront Retailer – Allows cannabis sales exclusively through delivery, without a physical storefront.
• Type 10: Storefront Retailer – Permits cannabis sales at a physical location, with delivery services allowed.
• Type 10-Retailer with Lounge Designation – Required to operate a cannabis consumption lounge, which includes specific regulations such as operating hours and quantity limits for onsite consumption. Customers may consume cannabis onsite but cannot take live plants or seeds. Smoking, vaping, and consuming edibles are allowed within designated areas.

Cultivation License

Cultivation licenses are based on production methods, lighting, and canopy size. There are various categories for different cultivation scales:

• Specialty Cottage – Small-scale cultivation, including outdoor (up to 25 plants or 2,500 sq. ft.), indoor (up to 500 sq. ft.), and mixed-light (up to 2,500 sq. ft.).
• Specialty – Medium-scale cultivation, including outdoor (up to 50 plants or 5,000 sq. ft.), indoor (501–5,000 sq. ft.), and mixed-light (2,501–5,000 sq. ft.).
• Small – Outdoor, indoor, or mixed-light cultivation (5,001–10,000 sq. ft.).
• Medium – Larger cultivation areas, including outdoor (10,001 sq. ft. to 1 acre), indoor or mixed-light (10,001–22,000 sq. ft.).
• Large – Large-scale cultivation, including outdoor (over 1 acre), indoor or mixed-light (over 22,000 sq. ft.).
• Nursery – For growing clones, seeds, and immature plants.
• Processor – For trimming, curing, packaging, or labeling cannabis.

Manufacturing License

Manufacturing licenses are divided based on the methods of extraction, chemicals used, and facility operations.

• Type 7: Volatile Solvent Manufacturing – Allows the use of volatile or non-volatile solvents and mechanical methods for extraction, as well as infusing, packaging, and labeling products.
• Type 6: Non-Volatile Solvent Manufacturing or Mechanical Extraction – Permits non-volatile solvents like ethanol and CO2, or mechanical methods like rosin presses, for extraction, along with infusion, packaging, and labeling.
• Type N: Infusion – Focuses on the creation, packaging, and labeling of infused products.
• Type P: Packaging and Labeling – Limited to the packaging and labeling of cannabis products.
• Type S: Shared-Use Facility Manufacturing – Allows extraction and product infusion in a shared facility, where multiple manufacturers rotate and share equipment.

Distribution License

These licenses are necessary for transporting cannabis and cannabis products between different business locations in California.

• Type 11: Distributor – Permits transporting cannabis between cultivation, manufacturing, and distribution sites, delivering products to retailers, providing storage, and arranging testing.
• Type 13: Transport-Only Distributor – Allows transporting cannabis between sites, with reduced fees for moving only self-cultivated or manufactured goods.

Microbusiness License

The Type 12 Microbusiness License is designed for establishments with at least three operations in one location, such as cultivation, manufacturing, distribution, and retail sales. This license allows businesses to operate across multiple sectors in a single facility.

Event Licenses

Temporary cannabis events allow people to buy and use cannabis for several days. These events usually occur at approved locations and can last from one to four days.

• Cannabis Event Organizer License – Required to organize cannabis events.
• Temporary Cannabis Event License – Required for staging a cannabis-related event, alongside the event organizer’s license.

Testing Laboratories License

Testing laboratories are essential for ensuring cannabis products meet safety standards. A Type 8 Testing Laboratory License is required for facilities that test cannabis products before they are sold to retailers. All cannabis products must undergo testing to verify safety and quality standards.

These various license types provide the legal foundation for cannabis businesses to operate in California, ensuring compliance with state regulations while allowing for a range of business models and operations in the thriving cannabis industry.