Operating Permit

1. Final Inspection

The Final Inspection is a critical step in the process of obtaining your Operating Permit. Before you can legally begin your commercial cannabis operations, your business must pass this inspection to ensure that it complies with all city, state, and DCR (Department of Cannabis Regulation) 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. Clearances from other Governments: 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.
2. Submit Required Documents: Use the Document Upload Portal to submit all necessary permits, clearances, and licenses required by law, including:
   • Certificate of Occupancy
   • Los Angeles County Department of Public Health permits
   • State licenses corresponding to your cannabis activities
   • Permits from other government agencies
3. 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.
4. How to Prepare:
   • Review Los Angeles Municipal Code (LAMC) Sec. 104.06(e) and Regulation No. 5, Section A(9) of the DCR Rules & Regulations to understand the requirements for securing an Operating permit.
     Review the Self-Assessment Checklist(PDF, 2MB) to help you prepare for the final inspection.
   • Ensure you have all required documents, including personnel records, security plans, Standard Operating Procedures, Metrc (Track and Trace), inventory and sales records.
   • Refer to the LIC-4024-FORM Business Premises Diagram Checklist(PDF, 387KB). This form will help you verify if your premises layout matches the approved diagram on file.
5. 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’s what 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. 

2. 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, and your Operating Permit will be issued. You are now authorized to conduct your licensed cannabis operations.
• 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, 341KB) and providing evidence of progress. Failure to comply may result in further enforcement actions, including fines or suspension of your license.

3. Compliance with Other Government Agencies 

Before scheduling your Final Inspection, make sure your business has obtained the necessary clearances from other government agencies. Depending on the type of cannabis activity you are conducting, some of the clearances listed below may not apply to your business. However, we encourage you to reach out to each agency to confirm whether their requirements are applicable to your operations. Taking this proactive step can help avoid delays and ensure a smooth compliance process.

The DCR requires the following clearances:

• Los Angeles Department of Building and Safety (LADBS): Ensure compliance with building codes and safety regulations. Visit LADBS
• Los Angeles Fire Department (LAFD): Ensure your premises meet fire safety regulations. Visit LAFD
• Los Angeles County Department of Public Health (LACDPH): All cannabis operators, regardless of the type of cannabis activity, must obtain a health permit. Storefront retailers must also acquire an Emblem Placard. Visit LACDPH
• Los Angeles Department of Water and Power (LADWP): Ensure your premises meet the required power and water standards. Visit LADWP
• Los Angeles Department of Bureau of Engineering (BOE): Ensure infrastructure-related requirements are met for your premises. Visit BOE
• Los Angeles Department of Bureau of Sanitation (LASAN): Ensure your business complies with waste disposal and sanitation regulations. Visit LASAN
• Los Angeles Department of Office of Finance: Ensure all necessary business tax registrations and financial obligations are met. Visit Office of Finance