New license change options are now available for certain types of cultivation licenses.
On March 11, 2024, the Department of Cannabis Control (DCC) adopted emergency regulations to implement Senate Bill 833. Under the new regulations, eligible cultivation licensees can make certain changes to their license.
These changes include:
- Reducing the size of a cultivation license,
- Placing the cultivation license in limited operations status, and
- Making a one-time change to the expiration date of a processor, nursery, or cultivation license.
If you are considering making any of these license changes, please review the information on this page, including the newly adopted regulations and definitions.
New regulations and definitions
The DCC has adopted emergency regulations to implement Senate Bill 833, codified in Business and Professions Code section 26061.5. The emergency regulations include several new definitions that may be useful to licensees considering one or more of the license changes made available due to the implementation of Senate Bill 833. The following definitions are used throughout these FAQS and have been included in this section for quick reference.
“Original Cultivation License”
“Original Cultivation License” means the provisional or annual cultivation license type indicated on the license prior to any reduction in size pursuant to this section.
“Modified License Term”
“Modified License Term” means the period of time that falls between submission of a cultivation licensee’s request to modify a license date of renewal and the requested modified license renewal date.
“Limited Operations Status”
“Limited Operations Status” means an inactive license status that allows a cultivation licensee to do only the following:
(1) Engage in the drying, curing, grading, trimming, packaging, and sale of cannabis harvested before the date the cultivation license was placed in Limited Operations Status.
(2) Possess and maintain seeds and immature plants used solely for propagation to preserve the genetic lineage of the cultivation licensee’s cannabis plants.
“Prorated Daily License Fee”
“Prorated Daily License Fee” means the prorated license fee for one calendar day, which shall be calculated by dividing the applicable annual license fee by 365. The applicable annual license fee shall be the license fee required by section 15014, section 15014.2, or section 15020.1(d)(2).
“Reduced-Size Cultivation License”
“Reduced-Size Cultivation License” means a cultivation license type specified by the cultivation licensee that satisfies both of the following:
(A) The maximum canopy size of the cultivation license is smaller than the maximum canopy size allowed by the cultivation licensee’s Original Cultivation License.
(B) The cultivation license uses the same type of lighting (i.e., Indoor, Outdoor, Mixed Light Tier 1, or Mixed-Light Tier 2) as the Original Cultivation License.
Learn about the options
Reducing the canopy size of your cultivation license
Licensees with a valid cultivation license can now request a reduced-size cultivation license either at the time of renewal or when making a one-time change to the cultivation license’s expiration date outside of the renewal process. Nursery licenses and processor licensees are not eligible for reductions in canopy size.
Placing a cultivation license in limited operations status
Cultivation licensees may now place a valid cultivation license in limited operations status. Nursery licenses and processor licensees are not eligible for limited operations status.
Requesting a one-time change to your license expiration date
Licensees with a valid processor, nursery, or cultivation license can now request a one-time change to their license expiration date.
FAQ
How will making a one or more cultivation license changes affect my provisional license?
Please be aware that provisional cultivation licensees must continue to actively and diligently pursue the requirements for annual licensure. A provisional cultivation licensee may pursue annual licensure for either the original cultivation license or a reduced-size cultivation license. After issuance of an annual cultivation license, that license shall be considered the cultivation licensee’s original cultivation license for the purposes of future requests to reduce canopy size.
If you have questions about how license changes affect provisional licenses, please contact info@cannabis.ca.gov
How will license fees be calculated when I place my cultivation license in Limited Operations Status at time of renewal?
When placing a cultivation license in limited operations status at time of renewal, the licensee will be responsible for paying 20% of the original cultivation license fee.
Example scenario
A licensee chooses to place their specialty cottage outdoor license in limited operations status at time of renewal.
Calculation formula
$1,205.00 original cultivation license fee x 20% = $241.00 modified license fee.
If you have questions about calculating a modified license fee, please contact payments@cannabis.ca.gov for assistance.
How will license fees be calculated when I make a one-time change to my license expiration date?
When a licensee with a valid processor, nursery, or cultivation license makes a one-time change to the license expiration date, DCC will first determine any credit the licensee is eligible for using a prorated daily license fee. The DCC will then calculate the gross amount of fee due from the cultivation licensee for the modified license term.
The DCC will determine the net difference between the gross amount of credit due from the original cultivation license and the gross amount of fee due for the modified license term to determine the fee that must be paid for the modified license term or the amount that will be refunded to the cultivation licensee by the DCC
How will license fees be calculated when I reduce the size of my cultivation license at time of renewal?
When reducing the size of a cultivation license at time of renewal, the licensee will be responsible for paying the license fee associated with the reduced-size cultivation license selected.
Example scenario
A licensee with a medium indoor license, chooses to reduce the size of the license to a small indoor license, at the time of renewal.
Calculation formula
The licensee will be responsible for paying the annual license fee associated with the small indoor license, which is $35,410.00.
If you have questions about calculating a modified license fee, please contact payments@cannabis.ca.gov for assistance.
How will license fees be calculated when I place my cultivation license in Limited Operations Status or request a Reduced-Size Cultivation License while making a one-time change to my license expiration date?
The DCC will first calculate any credit the licensee is eligible for using a prorated daily license fee. The DCC will then calculate the gross amount of fee due from the cultivation licensee for the modified license term. Calculating the modified license term will take into consideration fee calculations associated with either a request for limited operations status or a request for a reduced-size cultivation license.
The DCC will calculate the net difference between the gross amount of credit due from the original cultivation license and the gross amount of fee due from selecting either limited operations status, or a reduced-size cultivation license, to determine the fee that must be paid for the modified license term or the amount that will be refunded to the cultivation licensee by the DCC.
How do I use the Cultivation Licensing System to take advantage of the new cultivation license change options?
Eligible processor, nursery, and cultivation licensees can now use DCC’s Cultivation Licensing System (CLS) to make a one-time change to their license expiration date. Additionally, eligible cultivation licensees can use the DCC’s Cultivation Licensing System (CLS) to place their license in Limited Operations Status or request a Reduced-Size Cultivation License, during renewal or when making the one-time change to their license expiration date.
