Application Processing Period Open Now for Delivery, Distribution, Non-Volatile Manufacturing & Testing Lab Commercial Cannabis Activity!
The City of Los Angeles, CA has just opened a cannabis application acceptance window. Applications for cannabis land-use and cannabis permitting are now being accepted. Let’s get you started on the right foot!
Effective Tuesday, October 20, 2020 at 2:00 p.m., the Department of Cannabis Regulation (DCR) began accepting applications for delivery, distribution, non-volatile manufacturing, and testing lab license types. Application processing for these license types will remain open until further notice.
This is a huge opportunity to establish legal, licensed cannabis operations in LA City, which is booming with cannabis activity and these cannabis use types are great to support the many LA dispensaries / retail.
Read below to learn more below about the the cannabis regulations, application timelines, and general tax structures. Take a moment to reach out and ask CREC Compliance licensing questions to give yourself a jump start and increase your chances of success.
City of Los Angeles Overview
Los Angeles residents have a median income of $62,474 a year! AND it’s a hot market for cannabis use.
With a population of approximately 3.99 million residents, the city is centrally located near the Orange County, Santa Barbara, Riverside and San Diego County cannabis markets. Los Angeles offers an exciting opportunity to serve as a centralized base for your Southern California operations.
Read on to learn the details of the upcoming ordinances and find out how you can get a head start on the competition by finding a qualified cannabis location in Los Angeles, CA.
About the Proposed Cannabis Ordinance in Los Angeles, CA
Cannabis Uses: Retail, Manufacturing, Distribution, Testing Labs, Storefront Retail Microbusiness, and Non-Storefront Retail Microbusiness.
On October 5, 2020, DCR provided notice to the public regarding this application period pursuant to Los Angeles Municipal Code (LAMC) Sections 104.06.1(e)(2) and 104.06.1(f)(2).
Unlike Storefront Retail and Cultivation licenses types, the City of Los Angeles has not placed a limit on the number of delivery, distribution, non-volatile manufacturing, and testing lab licenses that may be issued citywide. No limit, means a huge amount of opportunity!
All applicants for the license types available on and after October 20, 2020 are required to complete the Pre-Application Review process. After being deemed eligible for further processing, applicants will be required to complete the Temporary Approval process in order to receive temporary authorization to engage in commercial cannabis activity.
Cannabis Licensing Process and Fees:
The City of Los Angeles’ cannabis licensing process requires the following applications and documentation (of course, you’ll need to submit an application for State license as well):
Los Angeles City Cannabis Licensing Applications and Documents:
- Pre-Application Review – $597.00 per application
- Temporary Approval Application – $5,720.00 per activity
- Annual License Application – $7,691.00 per activity
- Los Angeles Fire Department Inspection – Hourly Actual Cost with 4 hour minimum
- Annual Live Scan Review – $450.00 per individual
- Primary Personnel Background – $614.00 per application
Other fees may be applicable depending on site location and studies if needed.
Los Angeles City Cannabis Taxes:
The taxes are based off gross receipts or otherwise received from sales related to Medical or Recreational by Retail or Microbusiness Operations.
- Medical Cannabis Sales: $50.00 per $1,000.00 gross receipts.
- Adult-Use Cannabis Sales: $100.00 per $1,000.00 gross receipts.
- Manufacturing: $20.00 per $1,000.00 of the gross receipts generated or otherwise received.
- Transportation: $10.00 per $1,000.00 of the gross receipts generated or otherwise received.
- Testing Laboratory: $10.00 per $1,000.00 of the gross receipts generated or otherwise received.
- Cultivation: $20.00 per $1,000.00 of the gross receipts generated or otherwise received.
Timeline for Licensing
The Department of Cannabis Regulation in LA has released the following flowcharts illustrating approximate process timelines. Click below to see the full size version of each document.
Next Steps to Apply for Cannabis License in Los Angeles City – Contact Us!
If you are interested in applying for a Los Angeles city cannabis license, don’t go it alone!
You’ll need a qualifying property, a realistic budget and most importantly, a team of compliance experts to help in navigating county and state licensing requirements.
Our team has led many successful licensing applications and are ready to support you in specific areas of the country.
So let’s setup a time to talk, submit the web form below to tell us more about your interests. One of our Compliance officers will schedule a call to discuss your project and what it will take to become licensed and operational in LA City.