Operating Permit

1. Introduction

To legally operate a commercial cannabis business in the City of Los Angeles, a Licensee must obtain an Operating Permit from the Department of Cannabis Regulation (DCR). This permit confirms that the business has met all required regulatory, safety, and operational standards. Some businesses may be allowed to temporarily operate without an Operating Permit if they have been issued Temporary Approval. In accordance with LAMC Sec. 104.06(e), only Licensees with Temporary Approval are authorized to operate while awaiting their official Operating Permit.

Sunset of Temporary Approval

The Temporary Approval Licensure Process has sunset dates after which it is no longer valid. In accordance with LAMC Sec. 104.05(h), the City will phase out Temporary Approvals as follows:

  • February 28, 2031 – for Social Equity Licensees conducting Storefront Retailer activity
  • February 28, 2027 – for all other Licensees

To avoid business disruption, Licensees should begin preparing early to satisfy all Operating Permit requirements before Temporary Approval expires.

What’s Next?

To help you understand the Operating Permit requirements and its process, DCR has outlined key steps and requirements in the upcoming sections:

  • Final Inspection: Find out what the Compliance Analyst will review during your on-site inspection.
  • After the Final Inspection: Learn what happens once your inspection is complete and how to finalize the Operating Permit process.
  • Compliance with Other Government Agencies: Review the required clearances you may need from other City departments before you’re eligible to request a Final Inspection and obtain your Operating Permit.

2. Final Inspection

The Final Inspection is a critical step in the process of obtaining your Operating Permit. Before you can obtain your Operating Permit, your business must pass this DCR Final Inspection to ensure that it complies with all City, State, and DCR regulations. Here’s what you need to know about the Final Inspection process and how to prepare.

Preparing for Your Final Inspection

Before requesting your Final Inspection, make sure you have completed the following steps:

  1. DCR Annual License: An annual license must be obtained prior to requesting a Final Inspection.
  2. Clearances from other Government Agencies: Ensure that you have obtained all required clearances from other government agencies. Without these clearances, your inspection request will not be accepted. For more information, please see here.
  3. Submit Required Documents: Use the DCR Licensing Portal to submit all necessary permits, clearances, and licenses required by law, including:
    • DCR Annual License
    • Certificate of Occupancy
    • Los Angeles County Department of Public Health (LADPH) permits
    • State Annual licenses corresponding to your cannabis activities 
  4. Ensure Your Premises Are Ready: The Compliance Analyst will inspect the premises, which will include a full walk through of your business premises, including a review of required signage, security systems, personnel records, Standard Operating Procedures, Metrc (Track and Trace), amongst other items that will be checked during the final inspection.
  5. How to Prepare:
  6. Schedule Your Final Inspection: Once your documents have been submitted and your premises are ready, you can request a Final Inspection through the DCR Enforcement Accela Portal or by emailing DCRCompliance@lacity.org with the subject line:
    “Request for Final Inspection – [DCR Record Number]”

What to Expect During the Final Inspection 

The Final Inspection ensures that your business premises are fully compliant with all regulatory requirements. Here are some of the items the Compliance Analyst will review during the inspection:

  • Premises Condition: The overall condition of your business premises, to ensure your premises are free of graffiti, trash, debris, and that is compliance with safety standards. Any graffiti must be removed within 72 hours of its appearance, and all adjacent areas under your control must be maintained in good condition.
  • Required Signage: Confirm that all required signage, such as “No Loitering” signs, emergency contact information, and designated neighborhood liaison information, is visible and accurate.
  • Outdoor Lighting: Check that all outdoor lighting is shielded and downward-facing to ensure proper visibility at night.
  • Surveillance Systems: Verify that a digital surveillance system is installed and operational. Cameras must cover all entrances and exits, limited access areas, and points of sale. The footage must be stored for at least 90 days, with secure access to prevent tampering.
  • Ventilation and Odor Control: Ensure that exhaust systems are properly ventilated, and the smell of cannabis is not detectable outside the premises. All rooftop equipment must be screened from public view.
  • Security Measures: Licensed security personnel must be on-site during operating hours, and a functional alarm system must be in place with the alarm permitted by the Los Angeles Police Department.
  • Employee Identification: Employees must wear identification badges at all times while conducting business, displaying their name, photo, and DCR license number.
  • Conduct: Licensee must actively monitor and discourage loitering, nuisance activity, and any illegal conduct on the premises. Compliance Analysts will ensure that the property and surrounding areas are free from such activity.
  • Business Premises Diagram: DCR may require an updated business premises diagram reflecting any layout changes. The diagram must include clearly marked entry and exit points. 

3. After the Final Inspection

  • If You Pass: If your business passes the Final Inspection, you will receive a notice of satisfaction via email. The Compliance Analyst will notify the Licensing Division that your business has passed the inspection. The Licensing Division will then conduct a final review to verify that all requirements for issuance of the Operating Permit have been met. If all requirements are satisfied, your Operating Permit will be issued.
  • If There Are Discrepancies: If the Compliance Analyst identifies any discrepancies or violations, they will issue a Notice to Correct (NTC). You will have 30 days to rectify the issues. You may request an extension by submitting the ENF-3005-FORM(PDF, 338KB) and providing evidence of progress. Failure to comply may result in further enforcement actions, including fines or suspension of your license.

4. Compliance with Other Government Agencies

Before scheduling a Final Inspection or being eligible to receive an Operating Permit, your business must obtain any required clearances from other City and County agencies. These clearances help ensure that your premises meet all applicable building, safety, public health, and operational standards.

Please note that while not all agencies listed below may apply to every license type or activity, you should contact each agency to confirm whether a clearance is required for your specific commercial cannabis activity(ies).

Below is an overview of the agencies DCR refers Licensees and Applicants to, and the general requirements associated with each:

  • California Department of Cannabis Control (DCC): All Licensees must obtain a valid Annual License from the DCC before they can request a Final Inspection or be eligible to receive a City Operating Permit. Visit DCC Website
  • Los Angeles Department of Building and Safety (LADBS): All commercial cannabis businesses must comply with applicable building and zoning codes. This includes undergoing plan check reviews and obtaining a Certificate of Occupancy that corresponds with the cannabis activity or activities being conducted at the location. DCR is referring applicants and licensees who have not yet been permitted with LADBS to begin this process by using the DCR Referral for LADBS Plan Check form (INT-4001-FORM). A sample form is linked below for reference only. To receive a version specific to your business, please email DCRLicensing@lacity.org. View Sample here, INT-4001-FORM.

Visit LADBS Website:Plan Review & Permitting and Restaurant & Small Business Express Program

  • Los Angeles County Department of Public Health (LACDPH): All commercial cannabis businesses must obtain a valid health permit, regardless of their license type or activity. Additionally, Storefront Retailers must display a current Emblem Placard issued by LACDPH. Businesses must also complete the DCR Attestation: Public Health, Building & Operating Permits (LIC-4025-FORM) to certify compliance. Visit LACDPH Website
  • Los Angeles Fire Department (LAFD): Ensure your premises meet fire safety regulations. Visit LAFD: Visit the Fire Development Services Unit for fire related plan checks and permits, and the Fire Prevention Bureau (Cannabis Unit) for the required annual Fire Life Safety Inspection. To request a Fire Life Safety Inspection, email LAFDcannabis@lacity.org.
  • Los Angeles Department of Bureau of Engineering (BOE): Ensure infrastructure-related requirements are met for your premises. Visit BOE Website
  • Los Angeles Department of Bureau of Sanitation (LASAN): Ensure your business complies with waste disposal and sanitation regulations. Visit LASAN Website: Required Wastewater Permit and the Local Industrial Wastewater Permit Application
  • Los Angeles Department of Office of Finance: Ensure all necessary business tax registrations and financial obligations are met. Visit Office of Finance

Need help understanding these requirements?

DCR hosted a webinar titled “Permit & New Requirements for License Renewal” on May 28, 2025, which explains these clearances in greater detail and introduces the new required forms.

Watch the Webinar
View Presentation Slides

Also, the Department of Building and Safety (LADBS) has a Restaurant and Small Business Express Program that helps entrepreneurs unfamiliar with the permit process. For those who participate, the Program assigns a case manager to a project to help business owners navigate the permit process with all City departments. For more information, click here.

 

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