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FAQ: Reducing the canopy size of a cultivation license

FAQ: Reducing the canopy size of a cultivation license

Licensees with a valid cultivation license can now request a reduced-size cultivation license either at the time of renewal or when making a one-time change to the cultivation license’s expiration date outside of the renewal process.  Nursery licenses and processor licensees are not eligible for limited operations status.

Q: How do I request this change?

A: Licensees with a valid cultivation license can now request a reduced-size cultivation license either at the time of renewal or when making a one-time change to the cultivation license’s 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 change?

A: To qualify for a reduced-size cultivation license, you must:

  • Submit an updated premises diagram that satisfies regulatory requirements and identifies both the canopy area of the original cultivation license and the canopy area of the requested reduced-size cultivation license,
  • Pay any applicable licensing fee, and
  • Meet any applicable renewal requirements.

Nursery licenses and processor licensees are not eligible for reductions in canopy size.

Q: What requirements apply to reduced-size cultivation licenses?

A: The following requirements apply to reduced-size cultivation licenses:   

  • The reduced-size canopy area must be fully located with the canopy area of the original cultivation license,
  • The reduced-size cultivation license must maintain the same type of lighting as the original cultivation license, and
  • The reduced-size cultivation license must remain at the reduced-size for the duration of the license term.  

Q: How long will this change last?

At the time of renewal, you may choose to retain the reduced-size cultivation license, change to a different reduced-size cultivation license, or restore the original cultivation license.

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