Medical Cannabis “Licensure Exemption” for State Health Care Facility (HCF) Licensees

California cannabis retailers are licensed by the Department of Cannabis Control.

The California Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), including Health and Safety Code §11362.7(d)(1) provisions, grant a cannabis retail licensure exemption that authorizes health care facility (HCF) licensees to provide medicinal cannabis products, exclusively for their clients, without having to obtain a separate cannabis license.

The licensure exemption is based on the licensee’s role as a primary caregiver who is consistently providing housing, health, or safety of a large patient population.

Medicinal cannabis products are obtained  from licensed cannabis manufacturers.

Compensation: Health and Safety Code §11362.765(c) authorizes HCF licensees to receive compensation for products and services provided under the exemption.

Employee Designation: HCF licensees may designate up to (3) employees to assist in providing services and products.

Location Exemption: The 600 ft regulatory distance requirement from schools does not apply to HCF licensees.

STATE HCF LICENSEES ELIGIBLE FOR EXEMPTION

The licensure exemption for HCF licensees applies to any of the following state-licensed health care facilities:

Clinics (§1200) (a) Primary Care Clinic, (b) Specialty Clinics and (c) Clinic Corporations

Health care facilities (§1250) (a) general acute care hospitals (b) acute psychiatric hospitals (c) skilled nursing facilities.

Adult Residential care facilities  (§1568.01).

Residential care facilities for the elderly (§1569).

Hospices and home health agencies (§1725).

FEDERAL RESCHEDULING OF CANNABIS  

The April 2026 rescheduling of state-licensed medical cannabis to Schedule III has made cannabis an acceptable medication under Title 22 regulations for medication management in licensed health care facilities.

The rescheduling of medical cannabis opens new opportunities for its use in licensed health care facilities.

MCC FUNDED ASSISTANCE FOR HCF LICENSEES

The Medical Cannabis Caregivers has received funding to provide information, resources and assistance for HCF licensees who may be interested in the licensure exemption.

Private funding enables MCC to provide a trained medical cannabis practitioner to help HCF licensees establish eligibility for the cannabis retail licensure exemption and implement it in compliance with applicable Department of Cannabis Control regulations.

Helping HCF licensees understand and implement the licensure exemption is one of MCC’s most important projects. It offers an opportunity to advance California’s medical cannabis industry, expand patient access, and support cannabinoid therapies in the facilities where patients receive care.

MCC’s Licensure Exemption Information Packet for Health Care Facility Licensees explains the exemption and how MCC assists licensees with its implementation in compliance with state regulations.

To Request an Information Packet

Call 626-744-3191 or email Liz@MCCDirectory.org.

ABOUT THE MEDICAL CANNABIS CAREGIVERS (MCC)           

MCC has provided education and resources to California’s medical cannabis industry since 2006.

The California Department of Social Services (CDSS) has approved MCC to teach California’s medical cannabis regulations through its Continuing Education Program for residential care facility licensees and administrators.

MCC serves on the Advisory Board for the first federally funded study on cannabis titled Cannabis, Health, and Young Adults (chayala.org)

MCC’s Medical Cannabis Practitioner Program teaches health care providers how to help patients make informed decisions before using cannabis to treat a medical condition, and how to document and track patient outcomes.

Since 2016, more than 300 health care providers—including nurses, chiropractors, pharmacists, massage therapists, and acupuncturists—have completed the program.