Licensure Exemption for State Health Care (HCF) Licensees
The Opportunity
California’s medical cannabis regulations authorize state health care facility (HCF) licensee to provide medical cannabis products, exclusively for their clients, without having to obtain a separate cannabis license.
Medicinal cannabis products are obtained directly from licensed manufacturers.
Health and Safety Code §11362.765(c) authorizes HCF licensees to receive compensation for products and services provided un the licensure exemption.
Federal Rescheduling Opens the Door
Concern over the potential loss of Medicare funding has been a major barrier to implementing the HCF licensure exemption.
The April 2026 rescheduling of state-licensed medical cannabis to Schedule III marks a significant shift in federal recognition of its medical use. This development creates an opportunity to advance the role of HCF licensees in California’s medical cannabis program.
State Licensed HCFs Eligible for Licensure Exemption
The HCF cannabis licensure exemption is a facility-based provision for qualifying state-licensed health care facilities serving multiple clients.
The licensure exemption authorizes HCF state HCF licensees to provide cannabis products, exclusively for their clients, without having to obtain a state or city cannabis license.
Health and Safety Code §11362.7(d)(1) provides a cannabis licensure exemption for the following state licensed health care facilities:
Clinics (§1200) and health care facilities (§1250).
Residential care facilities for persons with chronic life-threatening illness (§1568.01).
Residential care facilities for the elderly (§1569).
Hospices and home health agencies (§1725).
Employee Designation: HCF licensees have the option of designate up to (3) employees to act as primary caregivers in assisting Clients who are qualified patients.
Location Exemption: The 600 ft distance requirement from schools does not apply to HCF licensees.
Implementation of Licensure Exemption
MCC Orientation on Medical Cannabis Licensure Exemption for HCF licensees
The Orientation explains California’s regulations regarding the HCF Licensure Exemption and introduces samples of medicinal cannabis products produced by licensed manufacturers.
HCF Information Packet
The Licensee provides an information packet to the selected licensed manufacturer that includes:
- a) HCF licensing information, brochures, website, general information
- b) HFC written request for DCC approval to obtain products from a named manufacturer as a HCF Licensee under the HCF Licensure Exemption.
- c) HCF written declaration that the products will be provided exclusively to the licensee’ clients,
- d) HCF written statement that the HFC Licensee will operate in full compliance with the DCC regulations for licensing of cannabis retail facility.
Manufacturer Obtains DCC Approval to Provide Products
The manufacturer uses the HCF information packet to confirm, with the Department of Cannabis Control (DCC), the lawful pathway for the sale, distribution, transportation, tracking, and reporting of products provided under the HCF cannabis licensure exemption.
MCC Support Services
Consultation, training, and comprehensive management services to ensure full compliance with DCC regulations for a cannabis retail facility.
Online patient information services provided by MCC trained Practitioners.
Systematic collection of patient data and outcomes. Data gathered within a licensed health care environment provides valuable real-world evidence regarding product use, patient response, and reported therapeutic outcomes.
A Personal Invitation from MCC
MCC has served California’s medical cannabis community since 2006.
Through my work teaching California’s medical cannabis regulations under the California Department of Social Services (CDSS) Continuing Education Program, I have had the opportunity to work with HCF licensees who recognize the benefits that cannabis can provide for their patients and clients
I welcome the opportunity to meet with you regarding the licensure exemption and how MCC can assist your facility with its implementation.
Contact
Liz McDuffie (626) 744-3191 / liz@MCCDirectory.org
For More Information
We’re here to help and answer any questions you might have.
We look forward to hearing from you!
