ICYMI: California Hashish Provisional Licenses Are Given New Life


On July 1, Governor Newsom signed into legislation AB 97 and SB 97, which mixed, lengthen the life and energy of provisional cannabis licenses, giving a lot wanted reduction to licensees sitting on momentary licenses that have been about to run out and/or which can be awaiting their provisional licenses to situation within the face of large pink tape on the state licensing degree. 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 criminal activity that violates the Medicinal and Grownup-Use Hashish Regulation and Security Act (“MAUCRSA”).

Listed here are the most important highlights (for my part) 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? Properly, the BCC will now have a clean verify to pursue unlicensed firms that assist individuals violate MAUCRSA. Particularly, the brand new payments state that:

“A licensing authority might situation 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 might “assess an administrative effective (per quotation) to not exceed . . . thirty thousand {dollars} ($30,000) per violation by an unlicensed particular person . . . In assessing a effective, a licensing authority shall give due consideration to the appropriateness of the quantity of the effective with respect to elements 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 great 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 prison 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 now not must have or have held a short lived license to get a provisional license. You now solely must have filed a accomplished annual license software with the state and in addition display 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 display 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 yr, however they’ll now be renewed for added year-long phrases till January 1, 2022.

Natural cannabis certification.  We’re getting an natural cannabis certification program (much like natural certification for merchandise that already exists below California and federal legislation) by 2021 for cultivated and manufactured merchandise, and also you principally can’t label your merchandise as “natural” till that program is up and working (since you’ll be able to’t get licensed natural standing on your cannabis merchandise from the Feds).

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

Total, the most important boon from these payments might be the truth that provisionals are the brand new momentary license, and that would be the case till 2022. This can possible result in longer issuance occasions for annuals throughout all state companies, however it’ll enable extra individuals to enter the licensed system with out having to attend months and months for any sort of licensure. And with the intention 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 purposes that embrace actual property data and the submission of structured normal working procedures. So, put together now accordingly!


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