In California, the cannabis change of ownership process starts with the DCC-LIC-027 Licensee Notification and Request Form, the form every state-licensed cannabis business uses to tell the Department of Cannabis Control that its owners are changing. You file it when a new person becomes an owner, when an owner leaves, or when the people who fund your business shift. Use the version marked Amended 2/22 near the top so you know you have the current form.
Getting this wrong is costly. If you add a new owner and fail to file a new license application within 14 calendar days, you risk disciplinary action, a hold on your license, and in the worst case, revocation. Under California rules, an owner is anyone who holds 20% or more of the business, runs it, or takes 20% or more of the profits, so even a single investor crossing that line can trigger this filing.
Here is what you will learn in this guide:
- ✅ Exactly which boxes to check on Form DCC-LIC-027 for an ownership change versus a financial interest change.
- 📋 Every document and number you must gather before you open the form.
- 🧾 Three real-world walkthroughs, from a full sale to adding a single investor.
- ⏰ The 14-day deadline that controls the whole process and what happens if you miss it.
- 🚫 The ten most common mistakes that get filings rejected and how to avoid each one.
What the Form Is and Who Must File It
Form DCC-LIC-027 is the official Licensee Notification and Request Form used by California cannabis licensees to report many license changes, including a change in ownership and a change in financial interest holders. The form is built around the California Code of Regulations, Title 4, Division 19, the rulebook that governs every state cannabis license. You file it with the Department of Cannabis Control, the single state agency that now oversees retail, cultivation, manufacturing, distribution, testing, and microbusiness licenses.
You must file when one or more owners of the license change. The rules define an owner as a person with an aggregate ownership interest of 20% or more, the chief executive officer, a board member of a nonprofit, a trustee, anyone entitled to 20% or more of the profits, or anyone who directs, controls, or manages the business. A general partner, a managing member of an LLC, and a corporate officer all count as owners. This means a buyer purchasing your dispensary, a partner joining at 25%, or a new CEO each forces a filing.
A financial interest holder is different. This is a person or entity with a financial stake under 20% who does not direct the business, such as a passive investor or a lender tied to profits. They are reported under a separate box on the same form. The line between the two matters because owners must pass a background check, while financial interest holders only need basic identifying details.
You file under several life events. A sale, a new investor, a departing partner, a new CEO, or the death of an owner can all require this form. The key trigger is whether a new person meets the definition of owner under section 15003 of the regulations.
Before You Start: Documents and Information You Need
Gather everything before you open the form. A missing item is the top reason these filings stall, and each delay extends the window where your ownership structure is out of compliance. Use this pre-filing checklist.
- Your exact licensee name. It must match the name on your active license, because the Department cross-checks it against its records and a mismatch can stall the review.
- Your license number. This is the unique state license number printed on your license; without it, the Department cannot tie your filing to the right record.
- Your license expiration date. The form asks for it directly, and an expired or near-expired license changes how the Department handles the request.
- Full legal name of each new owner. It must match their government ID, since the Department runs criminal background checks and a name mismatch triggers a processing hold.
- Ownership percentages for every owner. The Department needs to confirm who crosses the 20% line and who does not, which decides whether a full new application is required.
- Contact phone and email for each owner and financial interest holder. The Department uses these to reach owners during review, and missing contacts delay approval.
- Government-issued ID type and number for each financial interest holder. The rules require this for individuals, such as a driver’s license number.
- Federal taxpayer ID for any entity owner or investor. When a company holds the interest, its FEIN is required so the Department can identify the entity.
- A signed statement describing the change. The Department expects a clear written explanation of who is joining, leaving, or shifting percentages and the effective date.
- A new owner submittal form for each new owner. Each new owner files Form 9101: Commercial Cannabis Owner Submittal Form so the Department can judge their qualification for licensure.
Having these in hand lets you complete Form DCC-LIC-027 in one sitting and submit a complete package the first time.
Where to Get the Form and How to Access It
You download Form DCC-LIC-027 directly from the Department of Cannabis Control forms page, where it sits among the licensing forms. The form is a fillable PDF, so you can type into it on a computer rather than printing and writing by hand. Always confirm the Amended 2/22 revision note before you start, because the Department updates its forms and an old version may route your request to the wrong place.
You will also need Form 9101: Commercial Cannabis Owner Submittal Form for each new owner. This is a separate document from DCC-LIC-027, and many filers forget it. The owner submittal form collects each new owner’s personal history, financial interest, and the details the Department needs to run a background review.
If you cannot find a form or need a Live Scan request form for fingerprinting, the Department accepts email requests at CORI@cannabis.ca.gov. Keep a saved copy of every blank form and every completed version in a dedicated folder, because you may need to refile if the Department requests corrections.
Step-by-Step: How to Fill Out Form DCC-LIC-027 Line by Line
The form opens with three identification fields, then a list of checkboxes for the type of change, and a free-text area for details. Below is each field in the order it appears, with exactly what to write.
Field 1: Licensee Name
This field asks for the legal name of the business or person that holds the cannabis license. Write the name exactly as it appears on your active state license, using the same spelling, punctuation, and entity suffix such as LLC or Inc. For example, Golden Bear Retail LLC writes its name as Golden Bear Retail LLC, not Golden Bear or Golden Bear Retail.
A common edge case is a business that uses a trade name or DBA in daily life. Even if customers know you as Golden Bear Dispensary, you write the registered legal name here, not the storefront name. A frequent mistake is entering the DBA, which causes the Department to search for a record that does not match and places your filing in a manual review queue. Many filers wrongly believe the storefront name and the licensee name are the same, but the Department only recognizes the exact legal name on file.
Field 2: License Number
This field asks for the state license number assigned to your business. Enter the full number exactly as printed on your license, including any prefix letters and dashes, with no extra spaces. For example, a retailer enters C10-0000123-LIC in full rather than just the digits.
If you hold more than one license, you file a separate form for each license affected by the ownership change, since each license number is reviewed on its own. A common mistake is leaving off the prefix or transposing digits, which links your request to the wrong record or no record at all and stalls the entire change. People often assume one form covers all their licenses, but the Department treats each license number as its own filing.
Field 3: License Expiration Date
This field asks for the date your current license expires. Write it in month, day, year format, such as 09/30/2026, matching the date shown on your license. This date tells the Department whether your license is active and how the ownership change fits within your license year.
If your license is close to expiring, file the ownership change and your renewal as early as possible, because an expired license cannot be transferred or modified. A common mistake is guessing the date or copying the issue date instead of the expiration date, which signals an inaccurate filing and invites follow-up questions. Some owners think an ownership change resets the expiration date, but the license keeps its original expiration regardless of who owns it.
Field 4: Change in Ownership – Section 15023(c)
This is the central checkbox for a true ownership change. Check this box when a new person meets the definition of owner, meaning they will hold 20% or more, take 20% or more of profits, or direct and control the business. When you check this box, you must submit a new license application and the application fee within 14 calendar days of the effective date of the change.
Here the rules split into two paths. If at least one existing owner stays on under the new structure, the business may keep operating under the active license while the Department reviews the new owner’s qualifications. If all owners are transferring their interest, the business cannot operate under the new ownership until the Department approves the new application. For example, when Maria Lopez buys 100% of a dispensary from a sole owner, the business must pause new-ownership operation until approval, while a partner joining a continuing owner can keep the doors open.
A common mistake is checking this box but failing to file the new application and fee within 14 days, which exposes the license to discipline. Many owners wrongly believe simply notifying the Department is enough, but a genuine ownership change requires a full new application, not just this form.
Field 5: Change in Financial Interest Holders – Section 15023(d)
Check this box when the people or entities with a financial stake change but no new person crosses into owner status. For an individual financial interest holder, you provide the first and last name, a contact phone number and email, and the type and number of a government-issued ID such as a driver’s license. For an entity, you provide the legal business name, the primary contact’s name, phone, and email, and the entity’s federal taxpayer ID number.
You must file this within 14 calendar days of the change. If a former financial interest holder is leaving, you list their first and last name and state that they no longer hold a financial interest. For example, Daniel Cho, a passive investor at 10%, is added by listing his name, phone, email, and driver’s license number.
A common mistake is treating a financial interest holder like an owner and ordering a background check that is not required, which wastes time and money. People often confuse the two roles, but a financial interest holder under 20% who does not control the business does not file a new license application.
Field 6: Change in Legal Name of Owner or Legal Business Name – Section 15023(e)(2)
Check this box when an owner’s personal name or the legal business name changes, separate from any change in who owns the business. An individual licensee notifies within 14 calendar days of a name change, and a business entity does the same for a legal business name change. For example, after marriage Sarah Kim becomes Sarah Patel and checks this box to update her record.
A name change during an ownership transfer is common, such as a new entity formed to hold the license. A frequent mistake is updating the name only with the Secretary of State and forgetting to tell the Department, which leaves your state cannabis record out of sync. Some filers assume a Secretary of State filing automatically updates the Department, but the two agencies do not share these changes for you.
Field 7: Change in Contact Information – Section 15023(e)(1)
Check this box when any contact information from your original application changes. You provide the new contact details within 14 calendar days. This keeps the Department able to reach you during the ownership review.
When ownership changes, the main point of contact often changes too, so this box is frequently checked alongside the ownership box. A common mistake is changing owners without updating contacts, so Department notices go to a person no longer with the business and deadlines pass unanswered. People sometimes think contact updates are optional, but the rules require them within the same 14-day window.
Field 8: Death, Incapacity, Receivership, or Other Event – Section 15024(a)
Check this box when an owner dies, becomes incapacitated, or is otherwise unable to perform their duties. The owner’s successor in interest, such as an appointed executor, guardian, receiver, or trustee, notifies the Department in writing within 14 calendar days. You provide the successor’s name, the name and license number of the owner being succeeded, the successor’s phone, mailing address, and email, plus documentation such as a death certificate or court order.
For example, when an owner passes away, the estate’s executor, James Reed, checks this box and attaches the death certificate and the court order naming him. A common mistake is delaying the notice while the estate is sorted out, which can place the license in jeopardy during the gap. Families often assume the license simply passes to heirs, but the Department must be notified and the successor must qualify.
Field 9: Use Space Below for Additional Information
This open text area is where you describe the change in plain language. Write a short, clear statement naming who is joining, who is leaving, the new ownership percentages, and the effective date. For example, Effective 06/01/2026, John Diaz transfers his 50% interest to existing owner Maria Lopez, who will hold 100%.
This is also where a continuing owner can confirm that a departing owner transferred their interest to existing owners, which avoids triggering a full new application. A common mistake is leaving this blank or writing a vague note, which forces the Department to send questions and adds weeks to the review. Filers often think the checkboxes alone explain everything, but the written statement is what the reviewer relies on to understand the change.
Field 10: Signature and Date
The form must be signed by an owner as defined in the regulations, and dated. Sign with your legal name and write the date in month, day, year format, such as 06/02/2026. The signature attests that the information is accurate, and submission of the requested information is mandatory.
If your business has several owners, at least one qualifying owner signs, though for major changes it is wise to have a continuing owner sign. A common mistake is sending an unsigned PDF, which the Department cannot accept and returns, costing days against your 14-day deadline. Some filers think a typed name is never valid, but a clear electronic signature on the PDF is accepted when the form is emailed.
Three Filled-Out Examples Using Real Scenarios
These three scenarios show how different owners complete Form DCC-LIC-027 from start to finish.
Scenario 1: Maria Lopez buys a dispensary outright. A sole owner sells 100% of a retail license to Maria, so every owner is transferring interest.
| Form Section | What Maria Enters |
|---|---|
| Licensee Name | Golden Bear Retail LLC |
| License Number | C10-0000123-LIC |
| License Expiration Date | 09/30/2026 |
| Change in Ownership box | Checked |
| Change in Contact Information box | Checked |
| New owner submittal form | Form 9101 filed for Maria Lopez |
| Additional Information | Effective 06/01/2026, sole owner sells 100% interest to Maria Lopez |
| Operating status | Cannot operate under new ownership until DCC approval |
Scenario 2: Daniel Cho joins as a 25% partner. An existing owner keeps 75% and adds Daniel, who crosses the 20% owner line.
| Form Section | What the Licensee Enters |
|---|---|
| Licensee Name | Coastline Cultivation Inc |
| License Number | CCL19-0000456 |
| License Expiration Date | 03/31/2027 |
| Change in Ownership box | Checked |
| New owner submittal form | Form 9101 filed for Daniel Cho |
| Additional Information | Effective 06/01/2026, Daniel Cho joins as a 25% owner; existing owner retains 75% |
| Operating status | May keep operating while DCC reviews Daniel |
| New application and fee | Filed within 14 days of change |
Scenario 3: John Diaz leaves and transfers to his partner. Two equal partners become one, with no new person joining.
| Form Section | What the Licensee Enters |
|---|---|
| Licensee Name | Sierra Distribution LLC |
| License Number | C11-0000789-LIC |
| License Expiration Date | 12/31/2026 |
| Change in Ownership box | Not checked, no new owner |
| Additional Information | Effective 06/01/2026, John Diaz transfers his 50% to existing owner Maria Lopez |
| Signed statement from departing owner | John Diaz confirms transfer |
| Filing deadline | Signed statement filed within 14 days |
| Operating status | No interruption, no new application |
How to File the Completed Form
The Department of Cannabis Control accepts Form DCC-LIC-027 by email, which is the primary channel for these notifications. You email a completed copy of the form and all supporting documents to licensechange@cannabis.ca.gov, the address printed at the top of the form. Attach the signed PDF, the written statement of change, and any Form 9101 owner submittals, then keep the sent email and a date-stamped copy as your proof of filing.
For a true change in ownership, you also submit a new license application and the application fee through the Department’s online licensing system. License application fees are tied to the license type and the business’s expected gross revenue, so check the current application and license fees page for your exact amount. The Department reviews applications in the order received, and a complete, accurate package moves faster than one missing documents.
Many local cities and counties have their own change-of-ownership notice on top of the state filing. For example, San Luis Obispo County requires its own form and a Live Scan for new owners. Check with your local jurisdiction, because a state approval does not waive local approval, and operating without local sign-off can cost you the license.
Whichever channel you use, save proof. Keep the confirmation email, the application receipt, and any payment record, because if a dispute arises about timing, your dated proof shows you met the 14-day window.
What Happens After You File
Once the Department receives your form and fee, it begins a review. The Department checks that your package is complete, confirms with your city or county that you meet local requirements, and reviews each new owner’s criminal history. If at least one owner stays on, your business keeps operating during this review, which can take weeks depending on completeness.
If your filing is incomplete, the Department contacts you. Respond fast and provide exactly what is requested, because every day of back-and-forth extends the period your ownership is out of step with your license. A new owner’s background result is often the longest step, so file each Form 9101 promptly.
When the change involves all owners transferring out, you cannot operate under the new ownership until the Department approves the new application. Plan the closing of a sale around this gap, since running the business under unapproved ownership is a serious violation. Approval finalizes the new ownership on the state record.
Mistakes to Avoid When Filling Out the Form
Each error below has a direct consequence that can delay or derail your filing.
- Missing the 14-day deadline, which exposes your license to disciplinary action.
- Entering your DBA instead of your legal licensee name, which sends the filing to manual review.
- Leaving off the license number prefix, which links the request to the wrong record.
- Checking the ownership box but never filing the new application and fee, which voids the request.
- Confusing an owner with a financial interest holder, which orders an unneeded background check.
- Forgetting Form 9101 for a new owner, which stops the qualification review before it starts.
- Submitting an unsigned PDF, which the Department returns and costs you days.
- Writing a vague statement of change, which triggers rounds of clarifying questions.
- Skipping the local city or county filing, which leaves you without required local approval.
- Operating under new ownership before approval when all owners transfer out, which is a serious violation.
- Updating a name only with the Secretary of State, which leaves your state cannabis record out of sync.
- Sending notices to an outdated contact, which means you miss Department messages and deadlines.
Do’s and Don’ts
These quick rules keep your filing clean and on time.
Do’s
- Do file within 14 calendar days, because the deadline is firm and missing it risks discipline.
- Do match every name to the official ID and license, because the Department cross-checks records.
- Do file a separate form for each license, because each license number is reviewed alone.
- Do attach a clear written statement, because the reviewer relies on it to understand the change.
- Do keep dated proof of filing, because it protects you if timing is questioned.
- Do check your local jurisdiction rules, because state approval does not replace local approval.
Don’ts
- Don’t guess your percentages, because the wrong figure changes whether a new application is required.
- Don’t skip Form 9101 for new owners, because the qualification review cannot begin without it.
- Don’t operate under new ownership before approval when all owners leave, because it is a serious violation.
- Don’t use your storefront name in the licensee field, because only the legal name is recognized.
- Don’t send an unsigned form, because it will be returned and waste your deadline.
- Don’t assume agencies share your updates, because the Department and the Secretary of State do not sync these changes.
Pros and Cons of Filing on Your Own vs. With Help
Owners can file Form DCC-LIC-027 themselves or hire a cannabis attorney or compliance firm. The right choice depends on how complex the change is.
| Filing on Your Own | Filing With Professional Help |
|---|---|
| Saves money, because there are no professional fees. | Costs more, because attorneys and consultants charge for the work. |
| Faster to start, because you control the timeline. | Slower to start, because you must brief and hire the professional. |
| Works well for simple changes, like one partner transferring to another. | Better for complex sales, because experts structure the deal correctly. |
| Builds your own knowledge, because you learn the process. | Reduces error risk, because experts know the field-level traps. |
| Full control, because no one else touches your filing. | Saves your time, because the professional handles the paperwork. |
For a clean, simple transfer between existing partners, many owners file on their own. For a full sale, a new entity, or multiple investors crossing the 20% line, professional help often prevents the costly mistakes that delay approval.
Frequently Asked Questions
What is the deadline to report a cannabis change of ownership in California?
No more than 14 calendar days. You must file Form DCC-LIC-027 and, for a true ownership change, a new license application and fee within 14 calendar days of the effective date.
Does adding an investor always require a new license application?
No. Only when the investor becomes an owner, meaning they hold 20% or more, take 20% or more of profits, or help direct and control the business. Smaller investors are financial interest holders.
Can my dispensary keep operating during the ownership change?
Yes, if at least one existing owner stays on under the new structure. If every owner transfers out, you cannot operate under new ownership until the Department approves the new application.
Do I check the ownership box or the financial interest holder box?
Yes, check the ownership box when a new person meets the 20% owner definition or controls the business. Check the financial interest holder box for stakes under 20% with no control.
Do I write my legal name or my DBA in the Licensee Name field?
No DBA. Enter the exact legal licensee name as printed on your license, because the Department cross-checks it and a DBA sends your filing to manual review.
Should I include the prefix and dashes in the License Number field?
Yes. Enter the full license number exactly as printed, including prefix letters and dashes, because leaving them off links your request to the wrong record or none at all.
Do I list a departing owner who transferred their interest to a partner?
Yes. When an owner leaves by transferring to existing owners, that owner files a signed statement confirming the transfer within 14 calendar days, and no new application is needed.
Does a financial interest holder need a background check?
No. A financial interest holder under 20% who does not control the business only provides name, contact details, and a government ID type and number, not a full background review.
Where do I send the completed form?
Yes, by email. Send the completed Form DCC-LIC-027 and all supporting documents to licensechange@cannabis.ca.gov, the address printed at the top of the form, and keep the sent copy as proof.
Do I need to notify my city or county too?
Yes, in most cases. Many local jurisdictions require their own change-of-ownership notice and Live Scan, and state approval does not replace required local approval.
Does an ownership change reset my license expiration date?
No. The license keeps its original expiration date regardless of who owns it, so file any renewal on the normal schedule even during an ownership change.
What happens if I miss the 14-day deadline?
No outcome is good. A late or missing filing exposes your license to disciplinary action, processing holds, and in serious cases revocation, so file on time and keep dated proof.
Related reading
- How to Fill Out California DCC Cannabis Delivery License Application + FAQs
- How to Fill Out California DCC Cannabis Distributor License Application + FAQs
- How to Fill Out California DCC Cannabis Microbusiness License Application + FAQs
- How to Fill Out California DCC Cannabis Retailer License Application + FAQs
- How to Fill Out California DCC Cannabis Annual Compliance Report (w/Examples) + FAQs
- How to Fill Out the Cannabis Microbusiness License Application + FAQs