The Marijuana programs are being operated by the following authorities (click on links for more details):
License Approval process
In order to receive a license from the state, busineses first need to first show that they are compliant with their local municipality. Currently, it is hard to find local jurisdictions that are making it easy for businesses in the industry to obtain licenses. A few smaller cities realize the potential for tremendous tax revenue and are welcoming cannabis businesses, but most are struggling with competing constituencies and are not approving a lot of applications.
When the state receives an application for licensure, they will contact the local jurisdiction in which the business is applying. The local municipality will have 60 days to report to the state on whether or not they're currently compliant. If the local municipality says the business is not compliant, the application will automatically be rejected.
Additionally, prior to receiving a license, applicants must submit fingerprints and pass a general background check. Licenses will not be issued to persons convicted of certain felonies.
Types of licenses
It's surprising that the sale of medical marijuana has been legal in California for 21 years, but it has been always hard for business to start an operation due to the lack of a comprehensive regulatory system in the state. However, with new laws being implemented, the state is putting together a standard licensing system.
The state will issue 20 types of licenses in all, with main categories of licenses for retail, distribution, testing, manufacturing, cultivating and micro-businesses (a type of vertially integrated license that allow businesses to engage in multiple stages of the supply chain on a small scale).