Greetings!
This is the final Department of Cannabis Regulation (DCR) News Bulletin of 2025 and it’s a good moment to reflect on the year - the successes and those opportunities for improvement. While there have been many improvements that I will review later in this message, I would be remiss if I didn’t acknowledge the real challenges cannabis business operators face not just in Los Angeles, but across the country.
As many know, the cannabis industry comes with inherent challenges other industries do not face - a federal ban makes banking and marketing more challenging and also prohibits the write off of business expenses. On top of that, cannabis entrepreneurs must navigate offers from predatory lenders amongst other legitimate business deals; landlords that often charge more in rent for a cannabis business; high tax rates; and, of course, an illicit market that undercuts the progress of the legal market.
That being said, DCR has, to the best of its ability and within its powers, adapted to the current climate to best meet the needs of applicants and licensees. This department strongly believes in the perseverance of the L.A. cannabis industry despite evident challenges. DCR will not give up on this industry and we will continue advocating for its success and funneling resources when possible in the coming year and into the future.
Earlier this year, DCR was legally required to increase its fees to offset the increased costs of providing services to its stakeholders. DCR acknowledged that the increased cost was difficult for record holders. To help, DCR made available grant funding to waive regular 2026 Renewal fees to social equity owned businesses. DCR applied $3.8M in these fee waivers to 267 Social Equity records. 85% of our record holders have submitted renewal applications to date. DCR is still receiving, reviewing and processing renewals submitted during the late renewal period.
Other adjustments and resources DCR has provided to improve outcomes for applicants and business owners include:
- In January 2025, DCR extended the deadline to pay for the Annual Application fee;
- Revised deadlines to give all licensees additional time to obtain various necessary permits, including the Operating Permit;
- A relaunch of the Social Equity Program’s job board to help businesses fill key positions;
- Added online bill pay capabilities to allow for payment of certain fees without an appointment or having to go to city facilities to do so;
- Over the years, DCR has disbursed over $21 million in direct assistance and waivers. Many of our social equity licensees have received over $100k in assistance through fee waivers and direct financial aid;
- Held 27 webinars, 15 of which were for Social Equity Individuals to help them better navigate licensing and compliance procedures this year alone;
- Hosted a third Social Equity Individual Applicant Verification process in 2025 that gave more people access to the benefits, resources and services of the Social Equity Program;
- Revamped its licensing portal/website for licensees and applicants to more easily access the licensing portal, forms and other information; and its main website for the general public.
DCR continues to look at its processes in light of the current economic climate to see how it might improve efficiencies, continue dialogue with elected officials about those issues that affect licensed cannabis businesses, and encourage consumers to support local, legal cannabis retailers - all this while still committing to protect public health and safety.
I hope that 2026 brings in a stronger, more vibrant and stable cannabis economy that supports a financially sound City. To you and yours, happy holidays.
Best,
Michelle Garakian
Executive Director
The deadline to submit a 2026 DCR Renewal application during the regular filing period lapsed on November 1, 2025. However, those record holders wishing to renew their record for the 2026 calendar year may still do so during the late renewal period subject to late fees.
The second filing deadline to renew a record for 2026 subject to a late fee is now open from November 2 to December 31, 2025. Finally, a third filing deadline subject to late fees will be open from January 1, 2026, to February 28, 2026.
Please note that any operating business that has not successfully renewed their record by December 31, 2025, must cease operations on January 1, 2026. A record is considered successfully renewed when: a renewal application has been submitted, all associated fees (including non-renewal related fees) have been paid, all required documents have been provided, and the renewal application has been “renewed” resulting in an email confirmation from DCR.
For more information on the 2026 DCR Renewal, click here.
DCR is often asked about licensed cannabis businesses, their location, and what the zoning rules are. Many of these questions can be answered by knowing more about Sensitive Uses. Here is a quick review for those wanting to know more.
What is Sensitive Use and how does it affect cannabis businesses?
The Los Angeles Municipal Code (SEC. 105.02) covers rules for the location of and other requirements for commercial cannabis activity. These rules include guidelines that require cannabis and microbusinesses to be a certain distance from a Sensitive Use area. In the City of Los Angeles, a Sensitive Use area is defined as an Alcoholism or Drug Abuse Recovery or Treatment Facility, Day Care Center, Public Library, Public Park, School, and/or Permanent Supportive Housing.
Sensitive Use Restrictions Limitations
It is important to note that if these premises are not registered with the State, Sensitive Use restrictions do not apply.
Specifically, the Sensitive Use rules stipulate that:
- A cannabis retail storefront and microbusiness be located outside of a 700-foot radius of Sensitive Use areas and any other cannabis retail and microbusiness premises.
- This distance is slightly reduced to 600 feet for indoor cultivators, level 1 manufacturers, testing facilities, and distributors, while level 2 manufacturers must abide by this restriction plus also be located outside a 200-foot radius of any residentially zoned property.
It is often assumed that places of worship, gyms, smoke shops, and liquor stores are sensitive uses, but please note that these are not recognized as sensitive uses by the law.
DCR recently downloaded Sensitive Use lists from the State, which are reflected in DCR’s licensing map.
Annual compliance inspections are coming in 2026. All licensed cannabis businesses in operation that have renewed their license will begin receiving notices in January 2026 for their 2026 Annual License Compliance Inspection. A webinar to walk through what to expect will be held in early 2026.
Inspections will be scheduled throughout 2026 and invoices will be sent in January. Please look out for additional information in future communications about inspections and the webinar soon.
The fee schedule can be viewed here. Please note, Social Equity operators will receive partial fee waivers.
SEP Jobs Board
Check the Jobs Board for job postings in the cannabis space, or to list that you are hiring..
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