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 of39.75 million. It also has the country’s largest legal and illicit cannabis markets, boasting$4.4 billionin 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, only89 of California’s 482 citiesallow 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.
Status:Ongoing application process. Voters approvedMeasure Lin 2020 adopting an ordinance to allow cannabis distribution businesses, which included a tax of up to 10% of gross receipts.
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.
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.
Status:Applications are currently being accepted. Qualified social equity applicants are eligible to receive benefits and assistance to navigate the application and permitting process.
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.
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.
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.
Status:Measure Owas 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.
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.
Status:Measure Hpassed, setting the zoning for cannabis businesses within the city. A hearing is scheduled forApril 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 Wpassed 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.
Status:Measure Bwas 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.
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.
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.
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.
Despite challenges, the cannabis industry is still growing stronger than ever. Learn how to secure limited cannabis business licenses amid COVID-19 hardships.
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