Commercial Medical Cannabis Licensing in California

commercial medical cannabis

What can interested parties do now to prepare for California commercial medical cannabis licensing in 2018?

It is very important for interested parties to work with their local governments to obtain necessary permits required to operate a commercial medical cannabis business.  MCRSA created a duly licensing system, and a local permit and a state license are required to operate any legal cannabis business.  A local commercial medical cannabis permit must be obtained before any application for a commercial medical cannabis license can be submitted to the relevant state agency.

Commercial Medical Cannabis Operator Business Plan

First and foremost, operators must create a commercial medical cannabis business plan and budget.  The process of establishing and opening a legal cannabis business is going to be expensive and time consuming.  Operators must be sure they have the time and funds needed to successfully make it through local permitting and state licensing for their cannabis business.

Once operators have secured funding to cover their business plan and projections, they must have secure a suitable location to operate their commercial medical cannabis business.  Owner permission is required, and operators must comply with local requirements to obtain a use permit, building permit and occupancy permit.  Other permits may also be required, and operators should determine which permits are needed for their business type.

California Commercial Medical Cannabis Licensing Check List

Next, operators can start preparing other items required for state license applications. MCRSA requires the Applicant Operators to provide the following for license applications:

  • Fingerprints to the Department of Justice;
  • Evidence of the legal right to occupy and use the proposed location;
  • Submission of a detailed description of business operating procedures; and
  • Valid and current Seller’s permit for license types 1-4.

If a cannabis operator has been convicted of any crime, they may want to obtain a DOJ report to see if there are any charges that need to be expunged;

Cannabis operators should be certain they have a valid lease that includes terms that allow the operator to conduct a cannabis business with owner consent, and a declaration should be obtained from the owner confirming they have approved the intended use. Leases may be recorded with the local recorder’s office to secure property rights.

Operators should work with a CPA to make sure their tax returns are filed and up to date, and they should work with an experienced cannabis bookkeeper to track all income and expenses for the cannabis business. Gross receipts/tax reporting and record keeping will be a requirement for maintaining a permit and license for cannabis operators.

Whether its licensing, land use, property acquisition or some other commercial medical cannabis question, the attorneys at the Santa Rosa Canna Legal division of Beck Law P.C., assist you in navigating the California commercial medical cannabis licensing bureaucracy.

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