DCR understands that Applicants are eager to open their businesses and begin operating; however, there are regulations that guide this process. DCR wants to ensure that the road to licensure is not disrupted or impeded by providing clear communications about what is allowed at various points throughout the licensing process.

As illustrated in the diagram below, “Commercial Cannabis Activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of Cannabis or Cannabis products in the City.

No person may engage in any type of Commercial Cannabis Activity, including the mere possession of cannabis or cannabis goods in excess of the legal limit, unless they have obtained both a Temporary Approval from DCR and a provisional or annual license from the State of California Department of Cannabis Control (DCC). (Health & Safety Code §§ 11357, 11362.1)

To be clear, if an applicant received a Notice of Local Compliance Underway from DCR, this allows the applicant to continue the licensing process with the State/DCC, but it does not allow any Commercial Cannabis Activity on the Business Premises. Before conducting any Commercial Cannabis Activity, an applicant must have both Temporary Approval from DCR and a provisional license or annual license from the DCC.

DCR’s Compliance and Enforcement Division (CED) has received several complaints of Unlawful Establishments operating throughout the City and is investigating those complaints. "Unlawful Establishment" means any Person engaged in Commercial Cannabis Activity if the Person does not have a City-issued Temporary Approval or Operating Permit and a provisional or annual license from the state. DCR has the right to inspect any proposed Business Premises at any time, including prior to the issuance of a Temporary Approval or Annual License.

Unlawful Establishments may be subject to any and all civil, criminal, and/or administrative actions and penalties under the law, including, but not limited to, the denial of an Annual License by the DCR.

If an individual has questions about this communication please contact the CED at DCRCompliance@lacity.org. If there are questions regarding the processing of an application, please contact DCRLicensing@lacity.org or call the front desk during business hours at (213) 978-0738.