Greetings!
This year marks the 9th anniversary of the Department of Cannabis Regulation. Today, 24 states and the District of Columbia have legalized recreational cannabis business activity while another 14 have a comprehensive medical cannabis program. Arguably, the City of Los Angeles has the largest market in the nation. For all jurisdictions, the landscape continues to change locally as well as at the state and federal levels. From federal medical cannabis reclassification, to a statewide law on cannabis lounges, to a recent voter measure that would tax those involved in illegal cannabis business activity, much has changed and will continue to do so.
We understand that building and managing a legal cannabis business in the current environment is both challenging and complex. Information is key to making wise business decisions. To that end, DCR has released its latest podcast that provides some insights on recent federal moves that could affect local businesses. I hope you’ll give it a watch.
Also, DCR hosted its first in a series of webinars focused on the 2027 Renewal Period. If you missed it, you can visit DCR’s events page to see the archived webinar. You can also RSVP for and watch the upcoming webinars on July 29 and August 19, 2026. Both are at noon PDT.
In light of the everchanging cannabis landscape, please read on for a legislative update in this publication.
As many of our applicants and licensees may be aware, the upcoming renewal cycle includes another increase in DCR renewal fees. We recognize that higher fees create additional financial challenges for many operators, and we understand the impact this can have on your businesses. This was not a decision made lightly. As a full cost recovery department, DCR is required to align its fees with the actual cost of providing licensing and regulatory services. As part of the City’s adopted budget and cost allocation framework, the Department continues to fund certain City services that are allocated to our operations, contributing to higher overall operating costs. As those costs have increased, our fees have had to increase as well.
We remain committed to minimizing that impact wherever possible. That is why we continue to provide renewal fee waivers for eligible Social Equity licensees and to advocate during future budget discussions for greater operational flexibility and long-term financial sustainability for both our constituency and DCR. Our goal remains the same: to deliver effective, equitable regulation while working toward a fee structure that is as sustainable and affordable as possible for the businesses we serve.
Regards,
Michelle Garakian
Executive Director
Department of Cannabis Regulation
The 2027 Renewal Period begins on September 1, 2026. Join DCR’s slate of webinars to prep licensees and applicants for the process. All are at noon.
July 8, 2026 (watch the archive) | Reviews renewal roadmap through 2031, the research and pre-submittal phase, and what to know about hiring an architect or engineer for your project |
For the 2029 Renewal, licensees must obtain a Public Health Permit. This process takes significant time and operators should take steps now towards achieving this permit. Find out what it entails from the team at the Los Angeles County Public Health Department. | |
Find out more about obtaining the DCR Operating permit with a presentation by the licensing and compliance & enforcement divisions; and the LA Department of Building and Safety. |
In addition, review the DCR-created guide Road to Operating Permit & 2027 Renewal Requirements Guide. Please remember that the 2027 Renewal Period starts September 1, 2026 and ends on November 2, 2026.
The timeline and milestones for this and future DCR Renewals are below:
DCR Renewal Milestones Timeline2027 Renewal Period (9/1/2026-11/2/2026): By the end of this renewal period either, retain an active California licensed Engineer or Architect listed on the DCA website and include their name and license # OR provide your building permit application # from LADBS in the LIC-4025-FORM. 2028 Renewal Period (9/1/2027-10/31/2027): By the end of this renewal period, provide a building permit application # AND in-progress Clearance Summary Worksheet required by the LA Department of Building and Safety (LADBS). 2029 Renewal Period (9/1/2028-10/31/2028): By the end of this renewal period, provide an active LA County Public Health Permit AND a building permit from LADBS. 2030 Renewal Period (9/1/2029-10/31/2029): By the end of this renewal period either, obtain an LADBS Certificate of Occupancy OR complete a final inspection with LADBS if they determine a Certificate of Occupancy is not required. By January 1, 2031: Obtain DCR’s Operating Permit by passing a final inspection and submitting an LADBS Certificate of Occupancy to DCR.* *Businesses will require an Operating Permit after 1/1/2031 to operate. No exceptions. |
The Los Angeles City Council has recently approved several updates impacting local business operations.
On June 10, the City Council adopted a committee report and an amendment instructing DCR, with the assistance of the City Attorney, to report back with recommendations. This ordinance would permit Social Equity Individual Applicants (SEIAs) who held a license as of June 10, 2026, to sell ownership interests to any party, subject to appropriate guardrails. DCR is currently finalizing reports to implement this change.
As mentioned in the Executive Director’s message above, on June 30, the Council adopted a report to adjust existing business fees to account for rising operational costs and changes in revenue.
Additionally, on July 1, the Council approved updates to regulations regarding "good standing" status. Those updates include:
- Application refiling processes and timelines for business renewals
- Removal of the second late renewal window
- A path to renewal for those with outstanding tax delinquencies
- Creation of a structured payment plan enrollment as a requirement for maintaining temporary good standing status.
- Elimination of administrative extensions for late renewals to streamline compliance timelines.
Also approved on July 1 was a new tax amnesty program, which waives interest and penalties on past taxes and offers flexible repayment plans of up to three years, with an extended option of up to five years available for qualified small businesses.
DCR has made many upgrades over the years to make the fee payment process easier. Applicants and licensees can make payments for DCR-issued fees through these options:
- Office of Finance (appointments are required);
- the Department of Building and Safety’s Development Services locations throughout Los Angeles;
- or online. For additional details and requirements on payment of fees, please visit DCR’s Fees, Fines and Payments page.
All outstanding DCR fees must be paid prior to completing the upcoming renewal process. Renewal requests cannot be processed when there are outstanding fees. Please also note that mailed payments are only accepted for the 2027 Renewal Fee. Please refer to the DCR’s Fees, Fines and Payments page for additional instructions.
Tax remittance can only be made through the Office of Finance. For additional information, please visit the webpage for the Office of Finance.
DCR hosted a booth at the LA Pride Festival on June 14, 2026, and used displays to highlight the contributions made to the legal cannabis movement by the LGBTQ+ communities. Passersby were also asked to add their thoughts to DCR’s message board that asked “what does pride mean to you?” Here are some photos of what the event looked like.
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