July 2025 marks the 8th anniversary of the Los Angeles Department of Cannabis Regulation. The City has become the nation’s largest cannabis market, while California continues to pioneer the industry through its progressive cannabis policies. Read on to learn about the historical development of the state’s cannabis market, including key pieces of legislation that helped foster the Los Angeles industry.

1996: Compassionate Use Act 

On November 5, 1996, California voters passed Proposition 215, the Compassionate Use Act (CUA), effectively legalizing cannabis for medical use. The CUA decriminalized the cultivation, possession, and use of cannabis by seriously ill individuals upon a physician’s recommendation, ensuring that sick Californians could access marijuana for its medicinal benefits without fear of criminal prosecution. 

2004: Medical Marijuana Program Act

On January 1, 2004, the California Legislature enacted the Medical Marijuana Program Act (MMPA) into law, clarifying the scope of the Compassionate Use Act and establishing a system to help law enforcement identify Californians protected under its regulations. Specifically, MMPA required the State Department of Public Health to create and maintain a voluntary program for qualified patients and caregivers to obtain identification cards to prove criminal immunity for activities protected under the CUA. 

2015: Medical Marijuana Regulation and Safety Act

On October 11, 2015, a package of bills known as the Medical Marijuana Regulation and Safety Act (MMRSA) were signed into law, establishing a state regulatory and licensing framework for the sale, delivery, cultivation, and manufacturing of medical cannabis. 

2016: Control, Regulate and Tax Adult Use Marijuana Act

On November 8, 2016,  California voters passed Proposition 64, the landmark legislation that legalized recreational cannabis use – making California the fifth state to do so. Titled the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), the law established a comprehensive regulatory framework to legalize, control, and regulate the sale, cultivation, distribution, testing, processing, and manufacturing of nonmedical marijuana to adults 21 years and older. It also provided for the taxation of the commercial growth and retail sale of marijuana.

The intent behind the AUMA, in part, was to combat the illegal market by creating a regulatory structure to govern California’s commercial cannabis activity, prevent access by minors, and protect public safety, public health, and the environment.

2017: Medicinal and Adult Use Cannabis Regulation and Safety Act

On June 27, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) was signed into law, repealing the MMRSA and consolidating the state’s adult-use and medicinal cannabis regulatory programs. Generally speaking, the MAUCRSA created similar requirements for both commercial medicinal and recreational cannabis activity, and acts as the main statute for regulating cannabis businesses today. 

2017: DCR is created

The Los Angeles City Council votes to establish the Department of Cannabis Regulation to implement and oversee the City’s legal, adult-use cannabis market.

2018: California Cannabis Equity Act

On September 26, 2018, the California Cannabis Equity Act was signed into law, setting up a state-run program to assist local jurisdictions with drafting equity ordinances, providing loans, grants, and other assistance for marginalized and economically disadvantaged cannabis entrepreneurs. Learn more about the state’s local equity programs here. 

2019: DCR’s Social Equity Program

DCR receives funding from the City and State to set up its Social Equity Program.

2020: DCR receives equity grant funds

DCR receives $6 million in funding from the GO-Biz Cannabis Equity Grants Program for Local Jurisdictions.

2021: The Department of Cannabis Control 

Following the passage of Prop 64 and enactment of the MAUCRSA, there were three different state programs that handled the licensing and regulation of cannabis – the Bureau of Cannabis Control in the Department of Consumer Affairs, the Manufactured Cannabis Safety Branch in the Department of Health, and the CalCannabis Cultivation Licensing in the Department of Food and Agriculture. To simplify the structure, Governor Newsom proposed merging the programs into a single state department, creating the Department of Cannabis Control (DCC)  on July 12, 2021. The DCC is now the main entity that licenses and regulates cannabis businesses in California. More information on DCC’s rules and regulations can be found here. 

2024: Cannabis cafes legalized

AB-1775 is signed into law, allowing retailers - where local law permits - to sell noncannabis-infused food, nonalcoholic beverages, and tickets to live performances at their establishments. As of July 2025, the City of Los Angeles does not currently permit cannabis cafes.

2025: A DCR licensing milestone

DCR issues over 1,075 commercial cannabis licenses since it began in 2018.