ICYMI: California Hashish Provisional Licenses Are Given New Life


On July 1, Governor Newsom signed into regulation AB 97 and SB 97, which mixed, prolong the life and energy of provisional cannabis licenses, giving a lot wanted aid to licensees sitting on short-term licenses that had been about to run out and/or which are awaiting their provisional licenses to problem within the face of huge pink tape on the state licensing stage. These two payments additionally assist elevated and extra aggressive enforcement in opposition to unlawful operators and in opposition to non-licensees that assist or help criminality that violates the Medicinal and Grownup-Use Hashish Regulation and Security Act (“MAUCRSA”).

Listed below are the key highlights (in my view) from these payments:

Extra enforcement choices.  Bear in mind when the Bureau of Hashish Management (“BCC”) tried to go after Weedmaps for its alleged unlawful promoting help to non-licensees? Effectively, the BCC will now have a clean test to pursue unlicensed firms that assist individuals violate MAUCRSA. Particularly, the brand new payments state that:

“A licensing authority could problem a quotation to a licensee or unlicensed particular person for any act or omission that violates or has violated any provision of [MAUCRSA or its regulations].” As well as,  regulators could “assess an administrative nice (per quotation) to not exceed . . . thirty thousand {dollars} ($30,000) per violation by an unlicensed particular person . . . In assessing a nice, a licensing authority shall give due consideration to the appropriateness of the quantity of the nice with respect to components the licensing authority determines to be related, together with the next:

(1) The gravity of the violation by the licensee or particular person.

(2) The nice religion of the licensee or particular person.

(3) The historical past of earlier violations.

(b) [These] sanctions . . . shall be separate from, and along with, all different administrative, civil, or felony cures.”

Whether or not this invoice was a direct results of the BCC’s enforcement efforts in opposition to Weedmaps is anybody’s guess. In any occasion, unlicensed aiders and abettors beware.

Licensing simplification.  You not must have or have held a brief license to get a provisional license. You now solely must have filed a accomplished annual license software with the state and likewise exhibit proof of California Environmental High quality Act (CEQA) compliance (which is painstaking and time-consuming for many cultivation licensees) and native authorization out of your metropolis or county (or exhibit efforts to indicate that such approvals are underway) and also you’ll be certified to obtain a provisional license.

Provisional license renewals.  Provisional licenses will nonetheless be good for as much as a 12 months, however they’ll now be renewed for extra year-long phrases till January 1, 2022.

Natural cannabis certification.  We’re getting an natural cannabis certification program (just like natural certification for merchandise that already exists beneath California and federal regulation) by 2021 for cultivated and manufactured merchandise, and also you mainly can not label your merchandise as “natural” till that program is up and operating (since you possibly can’t get licensed natural standing in your cannabis merchandise from the Feds).

Social fairness enhance.  The state added extra meat on the bones to its personal social fairness technical help program for taking part native jurisdictions, which is far wanted as cities have struggled considerably to get social fairness sustainably off the bottom.

General, the largest boon from these payments might be the truth that provisionals are the brand new short-term license, and that would be the case till 2022. It will doubtless result in longer issuance instances for annuals throughout all state businesses, however it would permit extra individuals to enter the licensed system with out having to attend months and months for any form of licensure. And with a view to get that provisional, you’ll nonetheless must adjust to CEQA, safe native authorization, and get your geese in a row on some pretty concerned annual license functions that embody actual property info and the submission of structured commonplace working procedures. So, put together now accordingly!


Latest posts