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Provisional cannabis licenses in California coming to an end

Provisional cannabis licenses in California coming to an end

by | Jan 28, 2022 | 420 News, Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Politics

provincial cannabis licenses in California news

Thousands of business have been put on a timeline as provisional cannabis licenses in California will be coming to and end in the future.

The end to a longstanding program in the state is going to make entry into the California legal cannabis industry much more difficult for newcomers. However the end to the temporary permit program will impact thousands of legal cannabis businesses across the state.

In fact, this change will impact the majority of California cannabis businesses.

Beginning June 30th, the options for entering the cannabis industry in California will become more limited. Potential newcomers will have two options:

  • Obtain an annual state license
  • Buy an existing licensed company

But obtaining an annual state license in California right now can take months or even years before a new business could begin operations, not to mention the costs of obtaining said license. Buying an existing cannabis company that is already licensed will be a much speedier process, though likely even more costly.

This could mean an increase in merger and acquisition activity in the state. While the end to the provisional cannabis licenses in California is meant to help existing cannabis businesses in the state, it may be too soon to say.

Of the 12,221 marijuana businesses that are currently licensed in California, only 3,378 currently hold annual state licenses. In other words, over 70% of legal cannabis businesses in California are operating with a provisional license.

Compared to annual licenses, provisional cannabis licenses in California have been much easier to obtain. Provisional licenses have acted as an extension of temporary permits that were issued following the passing of Proposition 64. These temporary licenses were originally intended to allow already licensed medical cannabis businesses in the state to sell cannabis recreationally while the state set up the regulated industry.

That was in 2018.

In 2022, the majority of the industry is still operating under provisional licenses for a variety of reasons. However most would likely argue that the costs of obtaining an annual license alone is reason enough.

As it stands, current provisional license holders don’t need to worry. However those looking to apply for a new provisional cannabis license in California will have their first deadline March 31, 2022. These will specifically be license applications for mixed light and indoor cultivation at or less than 22,000 square feet of contiguous premises and outdoor cultivation at or less than 20,000 square feet of contiguous premises.

June 30, 2022 is when the California Department of Cannabis Control is when these licenses must be issued. Starting July 1st, renewing a provisional cannabis license in California will become more difficult, requiring specific conditions. However local equity applicants and smaller cultivations will still be able to apply for provisional cannabis licenses in California through 2023.

January 1, 2026 is the last day that any provisional cannabis licenses can be in effect. In other words, all current provisional cannabis license holders — 70% of current businesses in California — have until this date to obtain an annual state license.

Four years may seem like ample time for the 8,843 provisional license holders in California to make the switch to an annual license. However since Proposition 64 passed, California has been plagued with suffocating bureaucracy, exorbitant fees and costs, strict regulations and other issues that already make it extremely difficult to operate for smaller operations.

The state has allocated $100 million to help the 17 cities and counties with the most marijuana companies to finish transitioning provisionally licensed companies into annual permits. However the annual licensing process is so involved, said attorney Ariana Van Alstine, that some companies have taken years to get theirs. Others are still waiting for their licenses, going back-and-forth with local or state regulators on getting theirs completed or both.

With a priority on transitioning existing provisional cannabis licenses in California, one must hope that the process will run smoothly. Ideally, every provisional license holder will be able to make the switch to an annual license before January 1, 2026.

However if California’s past is to act as any reference, one must also be extremely skeptical.

New Jersey to become only legal cannabis state to not permit home cultivation

New Jersey to become only legal cannabis state to not permit home cultivation

by | Jan 21, 2022 | Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Growing, Legalization, Medical Marijuana, Politics

New jersey home growing will not be permitted with legalization

New Jersey state Senator Nick Scutari (D), the Senate President and a major proponent of cannabis legalization, said he doesn’t see the home cultivation of cannabis coming anytime soon.

New Jersians will not immediately be able to grow their own cannabis, neither for medical nor personal use purposes, the Asbury Park Press reports. During a webinar with cannabis industry professionals, state Sen. Nick Scutari (D), the main proponent of cannabis legalization in the state Senate and the new chamber president, said he does “not see” home cultivation “happening right now.”

“I’m not against marijuana being grown at home for medical purposes and maybe even just recreational purposes. But we’ve got to let this industry … it’s not even off the ground yet.” Scutari said during a press conference.

Currently, the price of medical cannabis in New Jersey runs about $412 to $420 per ounce, according to Curaleaf prices outlined by the Press.

Jo Anne Zito, a board member for the Coalition for Medical Marijuana New Jersey, said allowing patients to grow their own medicine would be “a tremendous help.”

“It doesn’t seem like the sky has fallen in these other places,” she told the Press. “Yeah, some of it may get to the illicit market but I don’t think it’s anything that’s hurting revenue or setting back legal sales.”

Of the 19 states that have legalized cannabis, New Jersey is the only one that does not allow medical patients to grow their own, the report says. Cultivating even one cannabis plant in the state is still punishable by up to five years in prison and a $25,000 fine, despite the state’s legalization law.

Read Full Story on Ganjapreneur

Mississippi medical marijuana bill introduced

Mississippi medical marijuana bill introduced

by | Jan 13, 2022 | Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Medical Marijuana, Politics

mississippi medical marijuana bill introduced into state senate

After months of debate and back-and-forth, lawmakers in Mississippi have finally produced a bill to implement a new medical cannabis law in the state.​

After months of speculation and hand-wringing, the Mississippi Legislature is set to take up a medical marijuana bill in the Senate as soon as Thursday, lawmakers said.

Sen. Kevin Blackwell, R-Southaven, filed the long-awaited bill late Tuesday afternoon. Lt. Gov. Delbert Hosemann referred the 445-page bill to the Senate Public Health and Welfare Committee for review.

Wednesday afternoon, the bill was passed by the Senate public health committee. Should it pass the Senate, it would head to the House and then to the governor.

Speaker of the House Philip Gunn said at the start of the legislative session medical marijuana was not a top priority of his. Bryan’s committee held two hearings over the summer about what a proposed medical marijuana bill would look like in Mississippi.

Gov. Tate Reeves said in June 2021 he would call a special session of the legislature if the House and Senate could agree on a bill.

In September, Gunn and Hosemann announced their two chambers had reached an agreement, but Reeves never called a session, objecting to portions of the bill. A draft version was made public in September, and lawmakers worked to address most of Reeves concerns.

Read Full Story from Clarion Ledger

Austin to Vote on Cannabis Law Enforcement Reforms

Austin to Vote on Cannabis Law Enforcement Reforms

by | Jan 11, 2022 | 420 News, Blog, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Politics

Austin cannabis reform vote happening in May

Residents in Austin, Texas will have the opportunity to vote on cannabis enforcement reforms in May.

Voters in Austin, Texas in May will vote on ending the enforcement of low-level cannabis offenses and no-knock raids by law enforcement, KXAN reports. The City Clerk’s Office on Monday qualified the ballot measure, known as the Austin Freedom Act.

Last year, the City Council approved a resolution prohibiting Austin police from spending city funds on lab tests to distinguish hemp from THC-rich cannabis in personal possession cases – a move meant to end arrests and fines for low-level cannabis possession.

Advocates submitted the petition signatures to officials last month. At the time, Ken Casaday, president of the Austin Police Association, said the 2021 resolution had already changed how the city police enforce cannabis laws and he didn’t “really see the point” of the initiative. He indicated that Austin police don’t make arrests for “low amounts” of cannabis.

Mike Siegel, political director of Ground Game Texas, which is backing the campaign, said the initiative would codify that “current informal policy.”

Read Full Story on Ganjapreneur

Everything to know about Connecticut cannabis license options

Everything to know about Connecticut cannabis license options

by | Jan 7, 2022 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Industry News, Legalization, Politics

Connecticut cannabis license types

After a meeting of the Connecticut Social Equity Council (SEC) in the first week of January, regulators have announced that the Connecticut cannabis license process will begin in February.

The legislation which legalized cannabis in the state has a condition in its copy that the Connecticut cannabis license process could not start until the SEC approved a technical assistance plan for the cannabis industry. The approved plan will include outreach and providing resources to people interested in participating in the legal cannabis market.

Connecticut’s Department of Consumer Protection (DCP) announced on Twitter that they will begin accepting applications for certain adult-use cannabis establishment licenses in 30 days. The DCP also will announce the specific number of Connecticut cannabis licenses will be available for each establishment type.

Each cannabis license type will be released for applicants at different times. This time frame is planned for February to the final week of March, and will operate under two lottery systems.

The first lottery will be specifically for social equity applicants, who will have first access to applications on February 3rd. To be a social equity applicant there must be at least 65% ownership or control of the business by individuals who “meet the income and residency requirements for a social equity applicant outlined in the law,” DCP said in a press release.

Individuals who fall under the “Disproportionately Impacted Areas” category have the option to pay $3 million and skip the lottery system altogether.

The other Connecticut cannabis license lottery is for general applicants. These license types include retailers, micro-cultivators, delivery services, transporters and more. From February 3 to March 24 there will be a 90-day application period with each license being released at a different period throughout the process.

Connecticut cannabis license types and application dates

The DCP released every Connecticut cannabis license type and how many applications will be available for the general and social equity lotteries. Here are the various types and how many licenses will be released.

Disproportionately Impacted Area Cultivator: February 3, 2022 (non-lottery)

 

Retailer: February 3

6 general licenses, 6 social equity licenses

Micro-cultivator: February 10

2 general licenses, 5 social equity licenses

Delivery Service: February 17

5 general licenses, 5 social equity licenses

Hybrid Retailer: February 24

2 general licenses, 2 social equity licenses

Food and Beverage: March 3

5 general licenses, 5 social equity licenses

Product Manufacturer: March 10

3 general licenses, 3 social equity licenses

Product Packager: March 17

3 general licenses, 3 social equity licenses

Transporter: March 24

2 general licenses, 2 social equity licenses

In a DCP press release, Commissioner Michelle Seagull said, “This work by the Social Equity Council is a critical step in the licensure process for the emerging Adult-Use cannabis market in Connecticut and will be instrumental in ensuring the equity goals established in the law are met.”

Seagull explained that the initial number of available Connecticut cannabis licenses is not meant to be a cap, but,”a starting point for opening the adult-use cannabis market in an effective, measured and thoughtful way,” she said.

Despite legalization, California black market still thriving

Despite legalization, California black market still thriving

by | Jan 5, 2022 | Blog, Business, Cannabis Business, Cannabis Law, Cannabis Law and Compliance, Cannabis News, Culture, Industry News, Legalization, Politics

Californa black market cannabis

Lake County has some of the largest acreages in permitted cannabis grows in California. Yet, despite a legal market, illegal grows are unfairly undermining the profitability of lawful cultivators.

This illegal market that voters sought to eradicate with cannabis legalization is quickly eroding the permitted industry and threatening public safety. Amounting to an estimated 80% of all cannabis sales in California, the market is saturated with low-cost illicit product. Cannabis cultivators are unable to compete.

As the underground economy thrives, so does criminal activity and environmental harm.

Rural counties with land and industry prime for cannabis cultivation are at the front lines of this battle, including those in the Sacramento region. During a time of limited staffing and competing priorities, local governments require increased state funding for enforcement.

The path for the legal industry is already challenging. Growers face a long permit process, including extensive state-mandated environmental review and higher taxes intended to help monitor and ensure public health and safety.

Distribution is also affected by the struggles of the state’s licensed retail outlets, which must compete with illegal retailers that similarly flourish due to limited enforcement resources.

Unencumbered by these obstacles, illicit growers and suppliers can sell product at half the cost and distribute them nationally. The negative impact to residents and the environment from this activity is significant.

A 2020 raid on illegal cannabis grows in Lake County resulted in the seizure of over 51,000 plants and the discovery of 40 state Fish and Wildlife violations. This included storage of chemical pollutants near waterways and usage of underage labor. Stories like these are echoed across the state, with illegal grows linked to violent crime, environmental damage and wildfire.

Read Full Story on Sacramento Bee