California’s marijuana licensing is set to slow with end of the temporal program

California’s marijuana licensing is set to enter a new chapter.

In the last-minute push which ended in June, hundreds of California cannabis businesses were given the final significant batch of provisional licenses that the state will ever grant.

The end of this temporary license program is viewed to raise the blockade to entry into the state’s cannabis market, particularly for the newcomers, because yearly licenses will be harder to get than the provisional permits were.

Temporary licenses essentially provided a path for the businesses to continue operations and to maintain the state abidance while they applied for more permanent yearly permits.

The (DCC) California Department of Cannabis Control in June approved 529 temporal licenses covering the retailers, manufacturers, distributors, delivery operators and most cultivators.

The tally portray about a quarter of the close to 2,300 temporal licenses the DCC issued during the entire financial year, which ended on June 30.

The approval on June was deadline, among several authorized by the agency since it endure a major reorient about 1 year ago, are part of state efforts to gradually hand out temporal permits altogether.

Looking forward, state regulators must have moved nearly 8,300 temporal licensees into yearly permit holders by Jan 2026.

According to the state data, the June bump affirm for more than 6 percent of the total active temporal licenses that were granted since the beginning of 2019, when the provision system launched.

The State authorities had until June 30th to grant most of the final permits, with exceptions for social fairness licensees and smaller cultivators.

“We have seen an inconstancy in application submissions that often correspond with judicial deadlines, impacting the total number of temporal and yearly licenses we have issued,” DCC transmission director Maria Luisa Cesar confirmed the numbers back that up.

Starting March to June, the DCC gave 1,574 total licenses, including both temporal and yearly permits – an 89% skip from the previous 4 months.

The month of June also provided a remarkable increase in yearly license approvals – the final stamp for the state compliance – with 306, or 21% of the whole financial year’s total of 1,465.

Two licensing dilemmas

Santa Barbara-based Autumn Brands is one of a thousand of California cannabis companies that has been operating under temporal permits for years, meanwhile simultaneously still trying to obtain yearly licenses.

It took this cannabis company close to four years to secure a county land-use permit and then another full year to secure a county business license – requirements before applying to change its temporal permits into yearly licenses, which the company filed to do so on the 15 of June. But the Autumn Brands is down with the waiting game.

“We are still to receive any communication from the DCC to finish that transition,” owner Autumn Shelton said.

Two local and state licensing requirements have caused headaches for cannabis operators like Autumn Brands since California brought new regulations for its medical and adult-use cannabis markets in the year 2018.

The 2 licensing has also slowed down licensing approvals in the world’s largest marijuana market, California. Still, the DCC encourages most of the applicants to obtain a full local compliance before applying.

“If they are not, then the DCC is not able to take a step forward til the local requirements are done,” Cesar said, including that the social equity applicants have a slightly different timeline.

State lawmakers the previous year approved a one-time $100 million grant to help 17 cities and counties streamline their applications, meet environmental consent and transition temporal permits into yearly licenses.

The DCC has dissolved about 80% of that funding.

The remaining 20% will be appropriate“after the local jurisdictions have considerably met the goal and the intended outcomes” set in their yearly plans, Cesar said.

The waiting game of the California’s marijuana licensing

After the DCC joined 3 state departments into 1 agency, it authorized several rule changes to simplify applications, California’s marijuana licensing improve licensing and ease acquiescence requirements.

The Industry insiders clapped those overhauls, but pointed out that the priority placed on licensing might bring other delays.

“As the DCC has mounted up efforts around licensing, we have deceitful noticed a slowdown in the processing of other important items like business adjustment and science correction (required for cultivation licenses),” said Conrad Gregory, senior director of compliance and corporate affairs at Oakland-based Statehouse Holdings, formerly known as Harbor side.

“These slowdowns can have an effect on the overall operations, like the planned operational changes, but we hope it is not long-lived while the DCC focuses on the licensing,” Gregory said.

The Chula Vista-based vape cartridge maker Helmand Valley Growers Co. is still operating under a temporal license and hopes to have its yearly license approved in the next month or so, according to CEO Bryan Buckley.

The company completed paperwork for its yearly license about five months ago.

“Overall,” Buckley said, “it seems that things with the DCC have become more up-to-date … and things are moving more efficiently than were before.”

California’s marijuana CEO Laid off, fined $2.4 million for illegal cultivation

California’s marijuana CEO Laid off, fined $2.4 million for illegal cultivation

California’Marijuana CEO fined; A primordial executive of several marijuana businesses in California has been expelled and ordered by a judge to pay a fined of $2.4 million for unlicensed cultivation.

According to the Salinas TV station KION, the former CEO Paul King of Monterey County-based California New Wave – a licensed distributor and cultivator – has been found liable for the penalties charged against the other two marijuana companies he ran in the year 2018 and 2019.

Those two cannabis businesses – Fuji Farms and Hands on Faith Association – were also found to have been cultivating marijuana without the required permits, according to a press release from Monterey County District Attorney.

Fuji Farms have been fined $375,760 and the other business Hands on Faith fined $2,038,424.

Fuji Farms did not have any marijuana cultivation licenses. Hands on Faith had obtained a cannabis cultivation licenses, but they had expired in the year 2019.

The companies were growing rapidly and selling cannabis under King’s leadership, the Monterey County district attorney’s office told KION.

King had sold an estimated $1 million worth of illegal marijuana in the cannabis market while running the two businesses. Unlicensed grows, the DA’s office said, by channeling cannabis sales through the licensed distributor and cultivator, California New Wave.

The judge in the case compelled that King was personally accountable for the Fuji Farms and Hands on Faith fines.

King was being removed from leadership by the California New Wave and all its related companies, the DA’s office said, and the two businesses are now operating under a new management.

California New Wave accepted to pay $150,000 in “civil penalties,” the DA’s office said.

California’Marijuana CEO fined; RELATED STORIES FROM SUGAR LEAF ORGANIC

North Dakota recreational marijuana legalization initiative makes fall ballot

North Dakota on Monday is becoming the latest state of, 2022 to have a recreational marijuana legalization ballot question accomplished for the November election.

‎In accordance with the news release from New Approach North Dakota, the adult-use proposal – formerly known as Initiated Statutory Measure No. 1 – was placed on the ballot by the Secretary of State after an assurance that the campaign had gathered the least number of voter signatures required.

If the voters approve the ballot question, it will favor another new recreational cannabis market and would:

  • Set up a regulated adult-use market.
  • Need Marijuana product lab testing for safety and quality commitment.
  • Give marijuana possession of up to one ounce by anyone 21 or older.
  • Stop public consumption.
  • Give home cultivation of up to three plants.

The count North Dakota legalization, which would allow for up to 7 manufacturing licenses and 18 retail permits, calls on the state regulators to give the adult-use market by October 2023.

The other states that will have adult-use recreational legalization on the ballot in 2022 will include ArkansasMarylandMissouri and South Dakota – even though the South Dakota measure is narrowly focused and is going to permit possession and home grow but not a regulated, cannabis commercial market.

Campaigns are still underway to get medical or recreational legalization resourcefulness before voters in Nebraska and Oklahoma.

New York to open social equity marijuana licensing window

NEW YORK

New York marijuana licensing — New York State’s Office of Cannabis Management has announced that it will be accepting the applications for Conditional Adult-Use Retail Dispensary, or CAURD, license. The online portal is going to be open on Thursday, August. 25, 2022, and will be closed on the 26 of Sept, said by the Office of Cannabis Management.

According to the Albany TV station WRGB, the state Office of Cannabis Management will take applications during this period for qualified social equity retailers only – identified by the New York regulators as the “Conditional Adult Use Retail Dispensary” permits – and not from the public.

Recreational Marijuana Sales in New York

State regulators have said repeatedly that the first recreational marijuana sales in the state of New York will be performed only by the social equity entrepreneurs – those who are impacted directly by the war on drugs – and the new licensing announcement is also part of the so-called “Seeding Opportunity Initiative,” WRGB reported.

“New York has affirmed our commitment to ensuring first sales are conducted by those harmed by prohibition,” said Tremaine Wright, the chair of New York Cannabis Control Board.

“We are writing a new playbook for what an equitable launch of a cannabis industry will look like and hope future states will follow our lead,”

To be able to apply, WRGB reported, applicants must have the following:

  • Marijuana-related arrest or conviction on their record – or a family member with such record – that pr-dates (March 2021).
  • Experience owning or operating a business.

But critics note that there is:

  • No chief equity officer in place.
  • No advisory board to give guidance on making the state’s recreational marijuana program to be more diverse.
  • There is also no detailed social and economic equity plan, as required by the adult-use law of last year.

The lack of progress on those fronts threaten the lofty social equity goals the state has set, industry experts say.

However, experts are more concerned about the lack of progress over certain elements of the New York’s social equity program and how this could affect the state’s equity goals and the market’s launch.

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