New California Cannabis Markets and Licensing Opportunities
Last Updated on March 18, 2021
California is the country’s most populous and diverse state, with a population of
39.75 million. It also has the country’s largest legal and illicit cannabis markets, boasting
$4.4 billion in adult-use sales in 2020. The state is expected to surpass $7.2 billion in annual cannabis sales in 2024. Its illicit market, however, continues to thrive, posing a significant threat to the legal industry across multiple regulated municipalities. In 2019, California’s illicit cannabis market was projected to reach approximately
$8.7 billion in sales, while in the same year its legal market topped out at around $2.9 billion. The two primary culprits of California’s thriving illicit market have been identified as sky-high sales tax (up to 25% depending on the municipality) and the fact that there aren’t enough retail stores to meet adult-use demand. As of September 2019, only
89 of California’s 482 cities allow cannabis retailers, making access to legal cannabis difficult or impossible for 393 cities across the state.
Below is a high-level overview of what markets are currently accepting applications and new markets to prepare for now. Regulations change frequently, and new markets continue to emerge. While the majority of the state's licensing opportunities are listed below, this list is not exhaustive. If you have specific questions about California markets, contact us.
Currently Open
Antioch
- Status: Ongoing application process with no license cap. Limited by the 600’ separation requirement.
- Population: 111,200
- License Types Allowed:
- All license types permitted by the state are allowed within the cannabis overlay district.
Arcata
- Status: Ongoing application process. The city has two zoning maps one for retail sales and one for all other commercial cannabis activity.
- Population: 18,178
- License Types Allowed:
- Manufacturer
- Testing Laboratory
- Storefront Retailer
- Non-Storefront Retailer
- Distributer
- Microbusiness
- Cultivation
Arvin
- Status: Ongoing application process.
- Population: 21,249
- License Types Allowed:
- Indoor Cultivation
- Manufacturer
- Testing Laboratory
- Non-Storefront Retailer
- Distributor
- Microbusiness
- Links:
- Arvin Commercial Cannabis Activity Ordinance
Banning
- Status: Ongoing application process. Voters approved Measure L in 2020 adopting an ordinance to allow cannabis distribution businesses, which included a tax of up to 10% of gross receipts.
- Population: 31,253
- License Types Allowed:
- Cultivation
- Manufacturer
- Testing Laboratory
- Distribution
Benicia
- Status: Ongoing application process.
- Population: 28,306
- License Types Allowed:
- Cultivators
- Distributors
- Manufacturers
- Testing laboratories
- Microbusinesses
- Links:
- Benicia CA Cannabis Program Website
Cathedral City
- Status: Ongoing application process.
- Population: 54,357
- License Types Allowed:
- Cultivation
- Manufacturing
- Distribution
- Testing Laboratory
- Dispensary with optional Delivery or Consumption Lounge
- Links:
- Cathedral City Cannabis Businesses
Coalinga
- Status: Open application for indoor cultivation, manufacturing, testing laboratories, distribution, nursery, and microbusinesses.
- Population: 16,534
- License Types Allowed:
- Indoor cultivation (up to 5,000 square feet canopy)
- Indoor cultivation (5,001 to 10,000 square feet canopy)
- Indoor cultivation (10,001 to 22,000 square feet canopy)
- Manufacturing (Non-volatile)
- Manufacturing (Volatile)
- Testing laboratory
- Distribution
- Nursery
- Microbusiness
- Links:
- City of Coalinga Commercial Cannabis Permitting
- City of Coalinga Permitting Process
Hollister
- Status: Open licensing for select business types.
- Population: 39,749
- License Types Allowed:
- Cultivation
- Manufacturing
- Laboratory Testing
- Distribution
- Links:
- Hollister Cannabis Facilities Permit Application and Information
Lindsay
- Status: The City of Lindsay is now seeking applications from parties to operate a cannabis retail dispensary, applications must be submitted to the City of Lindsay Finance Department by March 12, 2021 at 3:00 PM.
- Population: 14,000
- License Types Allowed:
- Cannabis Retail Dispensary
- Links:
- Request for Proposals for Commercial Cannabis Business Dispensary Website
- Commercial Cannabis Business Dispensary RFP
Long Beach
- Status: Ongoing application process.
- Population: 660,000
- License Types Allowed:
- Storefront Retailer (32 licenses, limited pre-existing medical dispensaries)
- Indoor Cultivation
- Manufacturer
- Distributor
- Testing Laboratory
- Links:
- Adult-use Cannabis Business Website
Los Angeles
- Status: On Tuesday, October 20, 2020 at 2:00 p.m., the Department of Cannabis Regulation (DCR) began accepting new applications from social equity applicants for the business types listed below. Application processing for these license types will remain open until further notice.
- Population: 3.96 million
- License Types Allowed:
- Non-Storefront Retailer
- Distribution
- Non-Volatile Manufacturing
- Testing Laboratory
Marysville
- Status: Open application process.
- Population: 69,779
- License Types Allowed:
- Cultivation
- Manufacturing
- Testing Lab
- Links:
- City of Marysville Commercial Cannabis
Nevada City
- Status: The next application deadline is March 31, 2020.
- Population: 3,142
- License Types Allowed:
- Manufacturing
- Distribution
- Nursery
- Testing Laboratories
- Links:
- Nevada City Cannabis Businesses Website
Palm Springs
- Status: Applications are currently being accepted. Qualified social equity applicants are eligible to receive benefits and assistance to navigate the application and permitting process.
- Population: 48,375
- License Types Allowed:
- Cultivation
- Distribution
- Retailers
- Lounges
- Manufacturing
- Testing Laboratories
- Links:
- Palm Springs Cannabis-Related Business and Activities
- Palm Springs Social Equity Program
Petaluma
- Status: Ongoing application process.
- Population: 60,767
- License Types Allowed:
- Manufacturing
- Testing Laboratories
- Links:
- Cannabis Business Regulation in Petaluma
Port Hueneme
- Status: Ongoing application process, limited by compliant real estate.
- Population: 22,156
- License Types Allowed:
- Storefront Retailer
- Non-Storefront Retailer
- Cultivation
- Manufacturer
- Distributor
- Links:
- Cannabis/Marijuana Ordinance & Information
San Diego
- Status: There is a limit of 4 Conditional Use Permits (CUPs) for storefront retail in each city council district. Not all are full yet, limited by properly zoned real estate.
- Population: 1.41 million
- License Types Allowed:
- Storefront retail
- Links:
- City of San Diego Cannabis Information
San Francisco
- Status: Applications are open for Equity Applicants, Equity Incubators and preexisting cannabis businesses. Process takes upward of 1 year to complete.
- Population: 874,961
- License Types Allowed:
- Cultivation
- Manufacturer
- Distributor
- Testing Laboratory
- Storefront Retailer
- Non-Storefront Retailer
- Links:
- San Francisco Step By Step: Apply for a Cannabis Business Permit
San Jacinto
- Status: Ongoing application process.
- Population: 47,989
- License Types Allowed:
- Cultivation
- Manufacturer
- Distribution
- Testing Laboratory
- Storefront Retailer with a fully operational cultivation or manufacturing business
- Microbusiness
- Links:
- San Jacinto Commercial Cannabis
San Leandro
- Status: Open application for manufacturing businesses.
- Population: 89,703
- License Types Allowed:
- Manufacturing (license cap has been removed)
- Links:
- Zoning Code Amendment Ordinance
San Luis Obispo County
- Status: Open application process.
- Population: 283,111
- License Types Allowed:
- Outdoor cultivation
- Indoor cultivation
- Non-Storefront Retailer
- Distribution
- Manufacturing
- Nurseries
- Testing Facilities
- Links:
- San Luis Obispo Cannabis Permitting Guide
- Cannabis Rules in San Luis Obispo County
Santa Ana
- Status: Open application process for cultivation, distribution, manufacturing, and laboratory testing businesses. Applicants are highly encouraged to call the Planning Division counter at (714) 647-5804 or email cannabis@santa-ana.org to schedule a pre-submittal or submittal appointment.
- Population: 332,775
- License Types Allowed:
- Cultivation
- Distribution
- Manufacturing
- Laboratory testing
- Links:
- Commercial Cannabis Portal
Santa Rosa
- Status: Ongoing application process.
- Population: 179,701
- License Types Allowed:
- Cultivation
- Manufacturer
- Laboratory Testing
- Storefront Retailer w/ Delivery Option
- Microbusiness
- Links:
- City of Santa Rosa Commercial Cannabis Application Support
South San Francisco
- Status: Ongoing application process.
- Population: 67,408
- License Types Allowed:
- Non-Storefront Retail
- Links:
- City of South San Francisco Cannabis Information
Stockton
- Status: Ongoing application process. The city’s annual cultivation, retail and microbusiness licensing round is closed.
- Population: 309,228
- License Types Allowed:
- Non-Storefront Retailer
- Non-Volatile Manufacturing
- Distribution
- Laboratory Testing
- Links:
- City of Stockton Cannabis Business Permits
Ventura
- Status: As of January 1, 2021, cannabis delivery is legal with appropriate permits. You must have a retail location outside of the city to qualify. On February 24, 2021, the City Council approved the second reading of the Regulatory Ordinance and Zoning ordinance.
- Population: 111,128
- License Types Allowed:
- Non-Storefront Retail (Delivery)
- Links:
- Cannabis Delivery Services Permit Application
- Ventura Cannabis Delivery Services Ordinance
Ventura County
- Status: Measure O was approved by voters, allowing cultivation (up to 500 acres for general cannabis and up to 100 acres for indoor nurseries) in preexisting greenhouse and other specified indoor structures and distribution in unincorporated Ventura County. Applications opened on January 1, 2021.
- Population: 846,006
- License Types Allowed:
- Cultivation
- Distribution
- Links:
- Cannabis in Ventura County
Wildomar
- Status: Ongoing application process.
- Population: 36,445
- License Types Allowed:
- Cultivation
- Manufacturer
- Distribution
- Testing Laboratory
- Storefront Retailer
- Links:
- City of Wildomar Cannabis Business Requirements and Facts
Pending New Markets
Brisbane
- Status: The City Council is tentatively scheduled to consider the draft regulations recommended by the Planning Commission in 2021.
- Population: 4,697
- License Types Allowed:
- Storefront Retailer (Up to 4 licenses)
- Links:
- City of Brisbane Cannabis Businesses
Burlingame
- Status: The City Council introduced an ordinance to all adult-use cannabis retail sales and delivery.
- Population: 30,576
- Links:
- Burlingame To Allow Cannabis Retail In New Ordinance
Chico
- Status: The City has paused the application process to reconsider the Commercial Cannabis program fees. The 45-day application period will re-adjust once the City Council provides more clarity.
- Population: 94,776
- License Types Allowed:
- Retailer - Storefront
- Retailer - Delivery only
- Testing laboratory
- Manufacturer
- Distributor
- Links:
- City of Chico Cannabis Information
Corona
- Status: City staff is finalizing the application process for Commercial Cannabis Permits (CCP).
- Population: 168,819
- License Types to be allowed:
- Storefront retailer (17 licenses)
- 1 location per business
- Microbusiness (No limit)
- Non-storefront retailer (No limit)
- Manufacturing (No limit)
- Distribution (No limit)
- Testing Laboratory (No limit)
- Links:
- City of Corona Application Status Update
Costa Mesa
- Status: Voters passed Measure Q adopting a tax rate for cannabis businesses. City officials are now developing program rules.
- Population: 113,615
- License Types Allowed:
- Storefront Retail
- Non-Storefront Retail
Daly City
- Status: A draft cannabis ordinance was released on March 16, 2021 and a zoning ordinance was released on March 10, 2021.
- Population: 106,677
- License Types Allowed:
- Storefront Retailer
- Non-Storefront Retailer
- Testing Laboratory
- Links:
- Draft Cannabis Ordinance
- Draft Zoning Ordinance
Encinitas
- Status: Measure H passed, setting the zoning for cannabis businesses within the city. A hearing is scheduled for April 1, 2021, to amend the Municipal Code to create consistency between prior regulations and those passed by voters in November 2020.
- Population: 62,904
- License Types Allowed:
- Cultivation
- Manufacturing
- Distribution
- Storefront Retail (4)
La Habra
- Status: Measure W passed authorizing four cannabis delivery businesses with a gross receipts tax of up to 6%.
- Population: 62,183
- License Types Allowed:
- Delivery
Monterey
- Status: The City Council is in the process of developing a cannabis business ordinance. The RFP process is expected in summer/fall 2021.
- Population: 28,352
- License Types Allowed:
- Storefront Retailer
- Non-Storefront Retailer
- Testing Laboratory
- Manufacturer
- Links:
- City of Monterey Roadmap to Cannabis
Vernon
- Status: In early March 2021, the city held a virtual town hall meeting to discuss commercial cannabis operations in the city.
- Population: 130 (Close proximity to Los Angeles)
- Links:
- March 4, 2021 - Cannabis Town Hall Meeting
Weed
- Status: Measure B was approved, which implemented the city's cannabis business ordinance.
- Population: 2,704
Markets to Keep an Eye On
Artesia
- Status: Voters passed Measure Q adopting a tax rate for cannabis businesses. There is currently no cannabis ordinance in place.
- Population: 16,750
Covina
- Status: Commercial cannabis businesses are currently prohibited. Discussions are on the table to allow cannabis operations.
- Population: 48,095
Grass Valley
- Status: Voters passed Measure N adopting a tax rate for cannabis businesses. The City Council is now considering a cannabis business ordinance.
- Population: 12,914
Hawthorne
- Status: Voters passed Measure CC adopting a tax rate for cannabis businesses. There is currently no cannabis ordinance in place.
- Population: 86,965
Hayward
- Status: Not currently accepting applications but new applications will be accepted.
- Population: 159,293
Laguna Woods
- Status: Voters passed Measure V a non-binding question on whether to allow cannabis retailers.
- Population: 16,046
Lemon Grove
- Status: Voters passed Measure J adopting a tax rate for cannabis businesses. City officials have said they will fast track regulations to allow adult-use cannabis sales.
- Population: 26,969
Madera
- Status: Voters passed Measure R adopting a tax rate for cannabis businesses. The city is now considering a cannabis ordinance.
- Population: 65,706
Oceanside
- Status: Ordinance went into effect establishing a tax on cannabis business activity on January 1, 2021.
- Population: 176,000
- License Types Allowed:
- Cultivation
- Manufacturing
- Distribution
- Non-storefront Retail
- Testing Labs
- Links:
- 2021 Cannabis Business Tax Ordinance
Sausalito
- Status: The City Council is discussing storefront retail businesses. There is currently no cannabis ordinance in place.
- Population: 7,100
- Businesses to be allowed:
- Storefront Retail
San Bernardino
- Status: In September 2020, the city council expanded the number of cannabis retail licenses allowed in the city from 10 to 17. The regulations and guidelines are being updated.
- Population: 216,089
- License Types to be allowed:
- Storefront Retail
- Links:
- City of San Bernardino Commercial Cannabis Activity
San Bruno
- Status: Voters passed Measure S adopting a tax rate for cannabis businesses. There is currently no cannabis ordinance in place.
- Population: 43,047
San Diego County
- Status: The Board of Supervisors directed County Staff to develop Cannabis and Social Equity programs for implementation in the County’s unincorporated areas. New ordinances will be coming in the next few months.
- Population: 3.33 million
Sand City
- Status: The city has released a survey to determine the public perspective on allowing commercial cannabis businesses in the city.
- Population: 310 (Close proximity to Monterey, CA)
- Links:
- Sand City Commercial Cannabis Survey
Sonora
- Status: An ordinance has been adopted for cannabis land-use guidelines. The City Council will use it to develop zoning and regulations for commercial cannabis.
- Population: 4,870
- License Types to be allowed:
- Storefront Retail (1 additional license, 2 licenses to existing medical dispensaries)
- Manufacturing
- Testing Labs
Vacaville
- Status: Voters passed Measure V adopting a tax rate for cannabis businesses. There is currently no cannabis ordinance in place.
- Population: 100,154
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