The Department of Cannabis Regulation published updated Rules and Regulations on its website on November 27, 2023, pursuant to Los Angeles Municipal Code (LAMC) section 104.16. This communication outlines some of the changes, but the full text of the updated Rules and Regulations can be found here. These changes help streamline many of the compliance and enforcement processes and allow DCR to utilize progressive enforcement tactics when conducting inspections.

The majority of the substantive updates to the Rules and Regulations were to Regulation No. 5, which covers operational requirements and violations for licensees. The other regulations were updated as well, so please read them here.

The updates to Regulation No. 5 provide more detailed regulatory oversight with specific attention to public health, safety, and operational accountability in the cannabis industry.

Updates to Regulation No. 5 include:

• Advertising: New specific guidelines on advertising were added, emphasizing the need for truthful, non-deceptive advertising practices.
• Diverted or Stolen Product: An explicit prohibition was added to prohibit diverting cannabis to Unlawful Establishments or selling stolen cannabis goods.
• Public Health Permit: A new phased-in approach was added requiring licensees to obtain a Public Health Permit from the Los Angeles County Department of Public Health for each Commercial Cannabis Activity. Detailed milestones, timelines and requirements for compliance are included.
• Operating Permit: A new regulation with specific conditions and deadlines was added to implement the requirement in LAMC section 104.06(e) to obtain an Operating Permit in the annual licensing process.
• Onsite Parties and Temporary or Special Events. Rules were added to clarify the previous prohibition on parties and events at licensed Business Premises.
• Storefront Retailer Commercial Cannabis Activity: Detailed regulations specific to storefront retailers were added, including implementation of the State’s track and trace requirement and a prohibition on curbside pick-up orders.
• Non-Storefront Retail (Type 9) Commercial Cannabis Activity: Comprehensive additions were made to the requirements for delivery licensees. This includes delivery employee guidelines, prohibitions against onsite orders and public access, signage requirements, submitting standard operating procedures to DCR, product transport rules, and other regulations specific to delivery licensees.
• Enforcement Tactics: Expanded DCR’s discretion to issue a Notice to Correct instead of issuing a Notice of Violation.

This is not a complete summary. Please review the entire updated Rules and Regulations, available here, so you are informed of all changes. If you have questions, please contact DCRCompliance@lacity.org.