Greetings!
The cannabis industry is always in flux. Now with the recent rescheduling of cannabis for medical use, it’s raising questions, hopes, speculation and even doubts about what to do as a business owner. On top of that, later this month, the U.S. Drug Enforcement Administration (DEA) will commence a formal administrative hearing on June 29, 2026, to evaluate the possible federal rescheduling or descheduling of all cannabis medicinal or recreational products and/or businesses. Some businesses are taking the wait-and-see approach, others want to get in now. There are no clear answers or one-size-fits-all solutions. Please take in as much information as you can. Consult with legal counsel and other important advisors.
DCR’s next “On the Record” podcast delves into this issue and brings on two local industry experts/attorneys to lay out the items to consider both as an interested party and entrepreneur. There is a lot to learn. More on the podcast is below in this bulletin.
For the past few months, though it may seem early, DCR has been working behind the scenes to get ready for the upcoming annual renewal process. For this reason, DCR just released vital information regarding the 2027 Renewal Period. The regular renewal period begins September 1, 2026, and continues through November 2, 2026. There is also one late period that ends November 30, 2026. Communications on this went out on June 2, 2026, with a link to a guide “Road to Operating Permit & 2027 Renewal Requirements Guide.” Additionally, there are planned webinars walking licensees and applicants through the renewal process. For other important details, please read on.
This month, DCR is also honoring Pride Month. The commemoration takes on special meaning in the cannabis industry. It was queer individuals in San Francisco who authored and spearheaded the 1996 Compassionate Use Act, as a result of the suffering caused by the AIDS crisis, making California the first state to allow medical marijuana use. We owe much of our progress in cannabis policy to the individuals who fought against oppression and saw cannabis as medicine, not just a drug. Happy Pride, DCR thanks the LGBTQIA+ community for getting us to where we are now.
Finally, we also celebrate Juneteenth, a federal holiday, signed into law in 2021. This holiday is in commemoration of the delayed recognition of the Emancipation Proclamation of 1862 which didn’t reach enslaved African Americans in Texas until June 19th 1865. DCR will be closed Friday, June 19 in commemoration.
Please reach out to DCR should you have any questions on anything in this publication. Remember that DCR hosts virtual and in-person appointments if you would like one-on-one time with a member of DCR’s compliance, licensing, or social equity team to ask general questions about processes. You can book an appointment here.
Best,
Michelle Garakian
Executive Director
Department of Cannabis Regulation
This month, the Los Angeles Department of Cannabis Regulation (DCR) sent out a notice to stakeholders regarding the opening of the 2027 DCR Renewal Period from September 1 to November 2, 2026. Importantly, it announced revised deadlines for some of its renewal requirements for this and upcoming renewal periods.
For the 2027 DCR Renewal Period, record holders must either: retain an active California licensed Engineer or Architect listed on the DCA website OR submit plans and obtain a building permit application number from LADBS. Applicants must include the name and license number of their Engineer or Architect OR provide the LADBS building permit application number on the LIC-4025-FORM.
Please note that If you are experiencing a hardship preventing you from meeting this year’s milestone requirement, please click here for more information.
DCR is hosting a series of webinars for the 2027 Renewal cycle. For information on upcoming webinars, visit DCR’s events calendar. Also, DCR has created a “Road to Operating Permit & 2027 Renewal Requirements Guide” to provide tips and best practices. Please also let DCR know where you are in the process here so that the department can better create resources to aid in your process.
In case you miss the regular 2027 Renewal Period, DCR will also have one late renewal period from Tuesday, November 3 to Monday, November 30, 2026. Additional late fees will apply
For additional information on the 2027 DCR Renewal Period and updated timeline, please visit the DCR website here. Below is the timeline.
DCR Renewal Milestones Timeline 2027 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. |
All businesses must pay for and successfully complete the 2026 Annual Compliance Inspection. This is necessary to continue operating beyond 2026, submit any modification requests during calendar year 2026, and submit a renewal application for 2027 (LAMC Section 104.12(c)).
Additionally, social equity businesses are eligible for a partial fee waiver through grant funding designated for social equity businesses, however, this funding expires due to grant timelines and funding restrictions. To preserve the partial waiver, licensees must remit payment by Tuesday June 30, 2026, as the waiver, unfortunately, will no longer be available after the above date.
Join the robust discussion on DCR’s “On the Record” that features two topics and FOUR guests. DCR will talk about Pride Month and the very important link between cannabis, legalization, and the LGBTQIA+ communities. Plus, two local attorneys (and experts on cannabis business matters) provide thoughtful notes on the recent White House move to reschedule medical cannabis and what it could mean for all of us.
Watch it on YouTube when it goes live this month. The link is here: ladcr.info/OTR
Have a topic you’d like us to discuss or have a question you want answered? Let us know about it here.
On June 10, Council approved an amendment to a motion that would allow Social Equity Individual Applicants (SEIAs) who currently hold a retail license, to sell ownership interests to any individual or entity.
On June 16, the Budget and Finance Committee agreed with the Government Operations Committee's action of June 2, and submitted a joint report to Council. The report recommends the adoption of the ordinances presented by the City Attorney. The ordinances would amend the Los Angeles Municipal Code to revise “good standing” provisions; renewal periods; and reinstatement and refiling requests to conduct Commercial Cannabis Activity.
Additionally, on June 16, the Budget and Finance Committee also agreed with the action taken by the Government Operations Committee regarding DCR’s proposed fee ordinance. A joint report was subsequently transmitted to the City Council for consideration. This proposal concerns a request for fee increases based on the rising operational costs and decreased revenues.
Lastly, the tax amnesty motion was also heard and approved before the Budget & Finance Committee with a joint report submitted to Council. This item concerns the implementation of a business tax amnesty program. This program provides a full waiver of penalties and interest for unpaid taxes along as an agreement is made for a three-year tax payment plan, or in some cases, a longer five-year payment schedule available to small businesses with comparatively large liabilities.
DCR is working with its Council partners to ensure these items get heard within an appropriate timeframe.
Have you seen DCR’s blog? If not, you should. Here’s some headlines that you’ve been missing:
Check it out here.
Retail Guide to Annual Licensing
Tax Compliance Guide for Cannabis Industries
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