October 11, 2018

By Lauren Mendelsohn

Hashish operators in California who are at present working underneath a non permanent state license but who have not nonetheless obtained their yearly point out license will get some reprieve next year many thanks to Senate Monthly bill 1459, which was not long ago signed into regulation by Governor Brown. SB 1459 will allow the state’s cannabis licensing businesses – the Bureau of Hashish Management, the Office of Food stuff and Agriculture, and the Office of Community Wellbeing – to issue “provisional licenses” to qualifying applicants until finally January one, 2020. The monthly bill has an urgency clause, indicating it is helpful straight away.

Provisional licenses are a new type of license that was established by the California condition legislature to tackle the issue of backlogs in processing applications at the community and condition ranges, and the licensing businesses not becoming in a position to issue or renew momentary licenses beyond January 1, 2019. These provisional licenses will be legitimate for twelve months from the date issued, and they can not be renewed. Provisional licenses will only be issued right until January one, 2020 but a individual provisional license might expire outside of that date, centered on the day it was issued. As is the situation with non permanent point out cannabis licenses, applicants cannot attractiveness an agency’s refusal to situation a provisional license. Provisional licensees should comply with the condition-mandated monitor and trace process, METRC, which is not demanded of short term licensees.

You may well be wondering what the system is to utilize for these new provisional hashish licenses. In truth, there is no separate application for provisional licensure. Instead, candidates are qualified to be regarded for a provisional license if (1) they at this time hold, or have held, a temporary state license for the exact same premises and identical sort of business hashish exercise that they are searching for to do on an once-a-year basis and (2) they have done an annual license application for that premises, such as proof that compliance with CEQA is underway and payment of the applicable software cost.

As of the time of creating this post, none of the point out hashish licensing agencies have issued any yearly licenses, despite the fact that rumor has it that the initial may possibly be issued afterwards this month. In addition, numerous corporations who are functioning less than a short term point out license are still ready for full area approval, a process which may perhaps not be completed by January.

Go through the entire textual content of SB 1459 under:

Segment 1. Section 26050.2 is included to the Small business and Professions Code, to read:

26050.2. (a) A licensing authority may possibly, in its sole discretion, issue a provisional license to an applicant if the next conditions are achieved:

(1) The applicant retains or held a short-term license for the very same premises and the very same business cannabis action for which the license may perhaps be issued pursuant to this part.
(two) The applicant has submitted a done license software to the licensing authority, such as evidence that compliance with the California Environmental Top quality Act (Division thirteen (commencing with Segment 21000) of the General public Methods Code) is underway.
(b) A provisional license issued pursuant to this part shall be legitimate for twelve months from the day issued and shall not be renewed. Except as specified in this area, the provisions of this division shall apply to a provisional license in the exact same manner as to an yearly license.
(c) Without restricting any other statutory exemption or categorical exemption, Division 13 (commencing with Part 21000) of the General public Resources Code does not implement to the issuance of a license pursuant to this portion by the licensing authority.
(d) Refusal by the licensing authority to concern a license pursuant to this area or revocation or suspension by the licensing authority of a license issued pursuant to this segment shall not entitle the applicant or licensee to a hearing or an enchantment of the final decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter four (commencing with Part 26040) of this division shall not implement to licenses issued pursuant to this portion.
(e) This segment shall remain in influence only right until January one, 2020, and as of that day is repealed.
SEC. two. No reimbursement is essential by this act pursuant to Portion 6 of Post XIII B of the California Constitution for the reason that the only expenditures that could be incurred by a community company or university district will be incurred mainly because this act creates a new crime or infraction, eliminates a crime or infraction, or modifications the penalty for a crime or infraction, in the that means of Part 17556 of the Govt Code, or adjustments the definition of a crime inside of the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. three. The Legislature finds and declares that Portion one of this act incorporating Part 26050.two to the Enterprise and Professions Code furthers the applications and intent of the Regulate, Control and Tax Adult Use of Marijuana Act of 2016.

SEC. four. This act is an urgency statute important for the immediate preservation of the public peace, wellness, or security within the that means of Article IV of the California Constitution and shall go into speedy effect. The information constituting the necessity are:
The considerable variety of cultivation license apps pending with area authorities that do not have adequate resources to course of action these purposes prior to the applicants’ momentary licenses expire on January one, 2019, threatens to generate a important disruption in the professional cannabis marketplace.

CDFA has also revealed this simple fact sheet about provisional licenses.


This details is delivered for instructional reasons only and is not meant as authorized suggestions. For precise issues connected to California’s cannabis guidelines, which includes how to acquire a license for industrial cannabis activity, get hold of the Law Places of work of Omar Figueroa at (707) 829-0215 or facts@omarfigueroa.com to program a confidential legal consultation.


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