California will begin issuing licenses allowing businesses to sell cannabis for social use on January 1.

After a business submits a license application, the state will contact the local city or county to determine whether the operation is in compliance with local law.

Entities seeking licenses will have to find a local jurisdiction which would allow them to operate in compliance with all local regulations. Currently, licensees are searching for cities or counties which are not hesitant about the legal cannabis industry. 

There are 20 types of licenses ranging from retail, distribution, testing, manufacturing, and cultivating. Businesses will be able to simultaneously apply for more than one type of license.

Although the sale of medical cannabis had been legalized in California since 1996, there wasn’t any comprehensive regulations which provided licensing from the state until now. 

In June 2017, Gov. Jerry Brown signed the Medicinal and Adult Use Cannabis Regulation and Safety Act which combined regulations from both the medicinal and social cannabis industry into one law.