Greetings,

I am happy to report that there is promising movement from California legislators on AB-564. As of September 11, the State Assembly and Senate have passed a bill that could temporarily pause the state excise tax rate that increased to 19% from 15% in July 2025. It now heads to Governor Newsom’s desk for signing or veto. 

If signed, the tax rate would decrease to 15% starting on October 1, 2025, until June 30, 2028. 

As we are in the midst of receiving applications for 2026 license and record renewals, I want to emphasize that beginning next year, licensees are required to reach specific permit milestones at future renewal periods. It is imperative that business owners act now as many of these permit processes take considerable time to complete. There is more information later on in this bulletin. Due to the importance of these requirements, DCR will continue to communicate these timelines throughout the coming months. Please don’t hesitate to start today! 

Finally, I also want to acknowledge Latino History Month that starts September 15 and honor the varied and deep impact Latino culture and people have on our great city.

Best,

Michelle Garakian

The 2026 DCR Renewal period began last week and will end on November 1, 2025. Don’t delay. If not renewed, all 2025 records and licenses will expire after 11:59 p.m. on Wednesday, December 31, 2025. Businesses with expired licenses must cease operations. For 2026 renewals, DCR will use available grant funding to cover the standard license and record renewal fee for all Social Equity records only. Please note, you must still complete and submit a renewal application and submit payment for any other non-renewal associated fees identified, as applicable, by the November 1, 2025, deadline. Licenses will not be renewed automatically and fee waivers will not cover late fees.  For more information, you can review recorded webinars on the 2026 DCR Renewal process here and here. You can also read the communications sent out last month.

AB-564 & LA City Council   At the local level, a resolution in support of the state’s AB-564 was introduced by Los Angeles Councilmember Imelda Padilla and is pending scheduling before the Rules, Elections and Intergovernmental Relations Committee.

You can now pay DCR 2026 Renewal fees online! The Los Angeles Office of Finance’s Cannabis Billpay system now allows for payment of renewal fees. 

Here is what you need to know:

• You will need your Invoice ID and City of Los Angeles Business Tax Registration Certificate # to start the online bill pay process. Both are included on your renewal invoice.
• You can pay using:
  • Debit/Credit card (Subject to surcharges)
  • eCheck / Direct banking (No surcharges will apply)
• Invoices created will be available for online payment one day after the invoice date and valid through November 3, 2025
• Online payment will not be an option after November 3, 2025. Online payments are not available for the first late or second late renewal periods
• Each invoice ID must be paid separately. If you have multiple activities on one record, you will have to complete the online payment process multiple times

Please note: As part of the 2026 renewal cycle, applicants/licensees are required to pay all other applicable outstanding fees (non-renewal related). These non-renewal fees are not available to be paid through the online system. 

Click here to go to Office of Finance’s website to learn more.

Earlier this year, DCR updated its Rules and Regulations for Cannabis Procedures that added new deadlines for all licensees in regards to various necessary permits, including the Operating Permit.

The first milestone must be met by September 1, 2026, and this initial deadline includes obtaining the LA County Public Health Permit and other clearances required on the LADBS Clearance Summary Worksheet. This 2026 requirement must be complete in less than one year. Permits will take several months to complete. Act now and avoid issues that will affect your business’s ability to operate. Please note these milestones must  be met before next year's renewal period. 

Small businesses can take advantage of the City of Los Angeles’s Restaurant and Small Business Express Program that assigns a case manager to help navigate through the City’s various city permit processes. More information is here and here. 

For more information on critical upcoming deadlines, click here.

Q&A Virtual Lunch: Special Edition on Modifications

RSVP and pre-submit questions for this month’s special edition of the Q&A Virtual Lunch webinar with Assistance Executive Director Jason Killeen on September 24, 2025, at noon. The webinar will focus on license modifications. You can RSVP and submit questions here and attend here.

Small businesses can take advantage of the City of Los Angeles’s Restaurant and Small Business Express Program that assigns a case manager to help navigate through the City’s various city permit processes. More information is here and here. 

Again, although these requirements dates sound far away, the inspection processes require a significant amount of time to complete.

More information on these steps can be found here. Please stay tuned for news about material and information webinars on this topic.

Cannabis Business Courses Available to All

In an effort to support cannabis businesses in this competitive industry, DCR is offering online courses to increase cannabis business acumen and, in turn, business success. These back-to-fundamentals courses include a series on branding & marketing; merchandise transport; security considerations; financial planning & payroll; insurance and risk management, to name a few.

DCR welcomes Commissioner Olivia McGovern to the Cannabis Regulation Commission. On September 5, the Los Angeles City Council approved mayor Karen Bass' nominee, who will serve a term through June 30, 2029. McGovern will be filling a vacancy left by former Commissioner Mario Melendez, whose term ended in June.

McGovern previously worked as a legislative deputy for City Councilwoman Monica Rodriguez and later was a public relations specialist for the Department of Cannabis Regulation. She also worked under the City Attorney's Office Public Pensions General Counsel Division and as a law clerk for Aleshire & Wynder, LLP, in Irvine, and then as a judicial extern to Judge Gail Killefer for the Los Angeles Superior Court. She is a graduate of Southwestern Law University and UC Berkeley.

The September 18, 2025, Cannabis Regulations Commission has been cancelled. The next scheduled meeting will be on October 2, 2025 at 2:00 PM.

CRC meetings will continue to be livestreamed here. For more information on the schedule and location of these meetings, please click here.

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