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California Cannabis Market Opportunities - January 2021

Last Updated on January 26, 2021

As of September 2019, only 89 of California's 482 cities allowed cannabis retailers. While we've seen more cities pass ordinances in 2020, around three-quarters of the state's municipalities have bans on retail cannabis businesses. Over half of the state's municipalities still have bans on all commercial cannabis activity. There are substantial opportunities on the horizon to establish profitable cannabis businesses in California over the next few years. 

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


Benicia

  • Status: Ongoing application process.
  • Population: 28,306
  • Businesses to be allowed:
  • Cultivators
  • Distributors
  • Manufacturers
  • Testing laboratories
  • Microbusinesses
  • Links:
  • Benicia CA Cannabis Program Website 

 

Coalinga

  • Status: Open application for indoor cultivation, manufacturing, testing laboratories, distribution, nursery, and microbusinesses. 
  • Population: 16,534
  • Businesses to be 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

 

Marysville


Nevada City

  • Status: The next application deadline is March 31, 2020. 
  • Population: 3,142
  • Available License Types:
  • Manufacturing
  • Distribution
  • Nursery
  • Testing laboratories 
  • Links:
  • Nevada City Cannabis Businesses Website


Palm Springs

 

Redwood City

  • Status: The application period to apply for a Cannabis Business Permit to operate storefront retail in Redwood City opened on January 11, 2021 and closes on February 25, 2021 at 4:00 PM PT.
  • Population: 86,200
  • Businesses to be allowed:
  • Storefront Retail (6)
  • Links:
  • Redwood City Cannabis Business Permit


Sacramento

  • Status: A Request for Qualifications (RFQ) is currently open for ten (10) storefront retail licenses. Applications are due by February 19, 2021. 
  • Population: 508,529
  • Businesses to be allowed:
  • Delivery
  • Microbusiness
  • Cultivation 
  • Non-volatile manufacturing
  • Testing lab
  • Links: 
  • City of Sacramento Cannabis Website 

 

San Leandro 

  • Status: Open application for manufacturing businesses.
  • Population: 89,703
  • Businesses to be allowed:
  • Manufacturing (license cap has been removed)
  • Links:
  • Zoning Code Amendment Ordinance 

 

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
  • Businesses to be allowed:
  • Cultivation
  • Distribution
  • Manufacturing
  • Laboratory testing
  • Links:
  • Commercial Cannabis Portal


Stockton

  • Status: Each year new cannabis business permits are issued via a lottery. One of the two licenses in each category is designated for social equity applicants. Applications are due by February 25, 2021, for this year’s lottery. 
  • Population: 309,228
  • Businesses to be allowed:
  • Retail Storefront - Dispensary (2)
  • Cultivation (2) 
  • Volatile Manufacturing (2)
  • Microbusiness (2)
  • Delivery
  • Non-Volatile Manufacturing
  • Distribution
  • Laboratory Testing
  • Links:
  • City of Stockton Cannabis Business Permits 



Pending New Markets


Banning

  • Status:
  • Measure L was approved by voters establishing a cannabis distribution tax of up to 10% of gross receipts.
  • The city adopted an ordinance in July 2020 allowing cannabis distribution businesses. The ordinance will go into effect once the election results are certified.
  • Population: 31,253
  • Businesses to be allowed: 
  • Distribution

 

Encinitas

  • Status: Measure H passed, setting the zoning for cannabis businesses within the city.
  • Population: 62,904
  • Businesses to be allowed:
  • Cultivation
  • Manufacturing
  • Distribution
  • Storefront Retail (4)

 

Fullerton

  • Status: The city passed a cannabis business ordinance on November 17, 2020, that goes into effect on December 17, 2020. The City council will then draft the details for the license application process. 
  • Population: 139,640
  • Businesses to be allowed:
  • Indoor Cultivation (Up to 5)
  • State license types 1A, 2A, or 3A
  • Manufacturing (Up to 5)
  • Non-volatile
  • State license type 6
  • Retail (Up to 5)
  • Storefront and non-storefront
  • Distribution/Transportation (Up to 5)
  • Microbusinesses (Up to 2)
  • Testing Laboratory (No limit)


La Habra

  • Status: Measure W passed authorizing four cannabis delivery businesses with a gross receipts tax of up to 6%.
  • Population: 62,183
  • Businesses to be allowed: 
  • Delivery


Ventura

  • Status: Voters passed Measure I setting the tax rate for commercial cannabis. As of January 1, 2021, cannabis delivery is legal with appropriate permits.
  • Population: 111,128
  • Businesses to be allowed:
  • Non-Storefront Retail (Delivery)
  • Links:
  • Cannabis Delivery Services Permit Application


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) and distribution in unincorporated Ventura County.
  • Population: 846,006
  • Businesses to be allowed: 
  • Cultivation
  • Distribution
  • Links:
  • Cannabis in Ventura County


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


Calabasas

  • Status: Voters passed Measure C adopting a tax rate for cannabis businesses. There is currently no cannabis ordinance in place.
  • Population: 113,615
  • Businesses to be allowed:
  • Storefront Retail
  • Non-Storefront Retail


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
  • Available License Types: 
  • Retailer - Storefront
  • Retailer - Delivery only
  • Testing laboratory
  • Manufacturer
  • Distributor
  • Links:
  • City of Chico Cannabis Information


Corona


Costa Mesa

  • Status: Voters passed Measure Q adopting a tax rate for cannabis businesses. City officials are now developing program rules.
  • Population: 113,615
  • Businesses to be allowed:
  • Storefront Retail
  • Non-Storefront Retail


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


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


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 application process is in the process of being updated. 
  • Population: 216,089
  • Businesses 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


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
  • Businesses to be allowed:
  • Storefront Retail
  • 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


Whether you are seeking your first cannabis business license or looking to expand into new regional markets, we are entrenched in California’s market and standing by to assist. We have experts ready to locate and secure compliant real estate, help develop your business plan, build your financial models, write and submit tailored application content, and prepare you for investment and execution. With looming deadlines now is the time to get started. Schedule an exploratory consultation with us today.


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