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FAQ: Placing a cultivation license in limited operations status

FAQ: 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.

Q: How do I request this change?

A: Limited operations status can be selected during license renewal or when requesting a one-time change to the license expiration date outside of the renewal process.

Learn more about how to make cultivation license changes using the CLS.

Q: How do I qualify for this status?

A: To qualify for limited operations status, you must pay any applicable licensing fee and meet all applicable license renewal requirements.

Licensees with licenses in limited operations status are prohibited from having mature plants on their premises. Anything that is harvested after the license goes on limited operations must be destroyed.

Q: What activities can be conducted?

A: Limited operations status allows you to conduct the following activities: 

  • Engage in the drying, curing, grading, trimming, packaging, and sale of cannabis harvested before entering limited operations status, and
  • Possess and maintain seeds and immature plants used solely for propagation to preserve the genetic lineage of the licensee’s cannabis plants.

Q: How long will this change last?

A: A cultivation license placed in limited operations status must remain in limited operations status for the duration of the license term.  You may opt to return the license to active status at time of renewal.

Q: How are fees for this change calculated?

A: View detailed information about fee calculations here: Fee calculations for cultivation license changes.

Support

If you have questions about this cultivation license change, please contact info@cannabis.ca.gov  

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.

View step-by-step instructions