California is moving to keep an important cannabis licensing option available while permanent regulations make their way through the state's approval process. On November 5, 2026, the Department of Cannabis Control (DCC) announced its intent to readopt emergency rules allowing eligible licensees to separate combined adult-use and medicinal-use licenses.
What the Proposed Readoption Allows
On November 5, 2026, DCC provided notice of its intent to readopt the emergency regulations governing modifications of A- and M-designations under rulemaking file DCC-2026-03-E.
The regulations allow a licensee authorized to conduct retail activities for both adult-use (A-) and medicinal-use (M-) cannabis under a single license to modify that license into two separate licenses: an A-license and a new M-license.
According to DCC's November 5 notice, 95 businesses had already used the emergency regulations to obtain separate adult-use and medicinal licenses. The department estimates that approximately 1,600 licensees could potentially qualify for the option.
The proposed readoption would keep that option available while the permanent regulations complete their own approval process.
Why the License Split Exists
DCC originally adopted the emergency regulations in response to the federal government's rescheduling of medicinal cannabis from Schedule I to Schedule III.
The Office of Administrative Law approved the emergency regulations on June 4, 2026, and they took effect immediately.
The license split gives qualifying retailers a way to establish a separate state medicinal operation that can pursue DEA registration without abandoning its related adult-use business. The state licensing change does not itself grant federal authorization. The medical entity must separately qualify for and obtain the required DEA registration.
The arrangement comes with compliance conditions. Separate A- and M-licensed entities must share the same individual owners and designated responsible party, physically separate their cannabis inventory, maintain distinct tracking and business records, and accept joint and several liability for obligations and violations involving either license.
Why Another Emergency Readoption Is Necessary
Emergency regulations are temporary, and the current rules are scheduled to expire on December 2, 2026.
Meanwhile, the permanent version of the same regulations is still moving through the approval process.
DCC noticed its intent to adopt the rules permanently on October 30, 2026, under rulemaking file DCC-2026-04-R.
The department is accepting public comments through December 14, 2026, with a public hearing scheduled for December 15.
That creates a timing issue. The emergency rules are approaching expiration, while the permanent regulations have not yet completed their approval process.
The readoption is intended to bridge that gap and keep the license-splitting option available in the meantime. Without another readoption, the emergency regulations would lapse before the permanent rules can take effect.
If approved by OAL, the emergency readoption would generally extend the regulations for an additional 90 days, giving the department more time to complete the permanent rulemaking process.
What Happens Next
The November 5 notice is a statement of intent, not the actual readoption.
California law requires DCC to provide at least five working days' advance notice to people who have requested regulatory notifications before submitting the proposed emergency readoption to OAL. Once submitted and posted by OAL, interested parties receive a separate five-calendar-day period to submit comments. OAL then reviews the filing and must approve the readoption before the emergency extension takes effect.
Until that approval happens, the existing December 2, 2026 expiration date remains in place.
What Cannabis Businesses Should Know
DCC also cautions that its regulatory actions should not be interpreted as advice about whether pursuing federal registration is appropriate for any particular business.
Licensees should consult their own legal counsel and business advisors before making decisions about federal registration or operational changes.
The department's notice concerns the continuation of the state licensing option. It does not determine whether federal registration is the right decision for an individual business.
Sources
- California Department of Cannabis Control, notice of proposed emergency rulemaking to readopt regulations for modifications of A- and M-designation, November 5, 2026 (rulemaking file DCC-2026-03-E)
- DCC, Finding of Emergency and Notice of Proposed Readoption of Emergency Regulations, November 5, 2026
- DCC rulemaking file DCC-2026-04-R (permanent adoption; comment period through December 14, 2026; hearing December 15, 2026)
- AG Order No. 6754-2026, 91 Fed. Reg. 22714 (April 28, 2026)
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