It looks as though thousands of legal cannabis licenses are about to run out in California state over the next few months.
The number is said to be as high as 10,000 over the next 6 months which is a lot! All legal cannabis companies are required to have a valid license, so all businesses need to take heed of this or it could potentially put your business at risk.
Many of the current licensee holders were given a temporary license that lasted 120 days, these could then be extended for up to 90 further days. The process was great to encourage startup businesses and get the industry rolling, with overall aims focusing on creating a permanent licensing system for the cannabis industry.
Abiding by state rules
The state of California has ruled that no temporary licenses can be renewed in 2019; the main concern for some cannabis companies is that their current paperwork is going to run out before the state renews their full annual licenses.
Who will this most likely effect?
Looking at data collected from the Bureau of Cannabis Control, the California Department of Public Health and the California Department of Food and Agriculture we can tell you the following facts:
● May licenses that were awarded by the BCC and CDFA saw a large spike in numbers towards the end of 2018 due to time running out.
● Licenses awarded by the CDFA and CDPH will start expiring before the majority of licenses awarded by the BCC. The CDFA and CDPH oversee the production of edibles and tinctures of cannabis products.
● The BCC is responsible for regulating licenses for labs, retailers and distributors.
● Over 6000 CDFA licenses will expire before Sept 14th if they don’t receive a replacement license.
● As of March 20th only 124 annual licenses have been awarded across the 3 agencies. This is a very small number compared to those about to run out.
What can you do to avoid this?
There is some good news here and all is not lost, having such a high number of applicants lose their ability to trade would be disastrous for the cannabis industry. The lawmakers have created a new provisional license.
Applicants could take advantage from this from Jan 1st 2019. Lawmakers are considering a further problem solver; the SB-67 which would see an extension of all licenses for the rest of the year.
This would be the best case scenario for everybody involved and would make perfect sense as a solution.
As the world becomes more open to one day having cannabis fully legalized, we have to appreciate that there are always going to be blips along the way.
The main takeaway here is that there are solutions to temporary problems and the industry continues to flourish on the whole. People are becoming much more open to the use of marijuana and its amazing therapeutic benefits.
It is best to be updated to the current issues and be united in our cause. Thankfully there is a Cannabis association for the Riverside County, Desert Hot Springs, Desert Hot Springs, and the rest of the southern California. The Coachella Valley Cannabis Alliance Network is an organization that provides a responsible and productive voice for the cannabis industry throughout southern California. You may reach them at 760-218-5447 or visit their website at .
The future is certainly bright and fragrant from where we stand on this!