Cannabis Control Looks to Consolidate Systems, Meet Mandates

The Department of Cannabis Control (DCC) is asking the Legislature and the governor for nearly $20 million in funding this budget cycle to merge disparate licensing systems and comply with new legislative mandates.

DCC was created in 2021 to regulate the cannabis industry, including cultivation, manufacturing, transportation, labeling and sales, among others. That mission was further expanded in October 2025 with the passage of Assembly Bill 8, which will ultimately shift oversight and consumer protections for “intoxicating cannabinoid products” from the California Department of Public Health to DCC.

The department has two technology-related budget change proposals (BCPs) that cite the need to consolidate disparate Accela-based licensing systems — specifically the Cannabis Licensing Enforcement Application and Reporting (CLEaR) and the Cultivation Licensing System (CLS) — as well as tech upgrades to licensing and the track-and-trace systems needed to comply with AB 8 mandates.

In the case of the two licensing systems, the BCP outlines the need for $7.2 million in one-time funding. The overall project cost is estimated at around $39.9 million, and, as of the filing of the BCP, is listed as being in Project Approval Lifecycle (PAL) Stage 1.

The project, known as the Cannabis Systems Integration, began in August 2024 and is expected to extend through December 2028, with the potential for management and operations to extend until June 2031.

“These are two fully distinct systems that cannot share data or documents in real time, forcing staff and licensees to duplicate submissions, manage multiple logins and perform several manual processes,” the BCP reads. “Compliance inspectors and investigators … must piece together information from both systems, increasing the risk of errors and delaying enforcement actions.”

According to the document, the execution phase of the project is slated for July 2026.

“DCC anticipates seeking funding for this project in 2027-28 and 2028-29 for the implementation phase,” the BCP reads. “While the project does require initial up-front costs, beginning in 2029-30, the project will save DCC over $1 million in annual costs.”

The second BCP requests more than $12.3 million for a broader set of priorities created by the enactment of AB 8, including technology and testing upgrades, staffing and equipment. Among the items outlined in the BCP was $800,000 in one-time costs for track-and-trace program updates, specifically a third-party, closed system from Metrc.

“To implement AB 8, the system must be reconfigured to allow cannabinoid plant material (hemp) to be entered into the system from an unlicensed source and allow finished products to exit the system from a non-retail system user,” the document states.

“If DCC were not able to implement the requirements in the bill in its track-and-trace database, bad actors could exploit loopholes to avoid compliance with statute, undermining the legal market,” the BCP adds.

In line with these priorities, the department also released a request for proposal for the cloud-based Laboratory Information Management System Replacement (LIMSR) project. That solicitation was initially published Jan. 16, with proposals due March 11. The point of contact for this RFP is Vaibhav Srivastava.