Provisional Licenses Extended
Provisional Licenses Extended – The California Legislature on Thursday gave the final go-ahead to a budget trailer bill that will, among other things, extend the lifespan of provisional business licenses for cannabis companies until 2022.
The measure, Assembly Bill 97, was approved easily by the assembly on a 57-11 vote after it passed the Senate on Monday. The bill now heads to Gov. Gavin Newsom, who is expected to sign it.
Provisional licenses were created by the Legislature last year as a stopgap measure for marijuana businesses that encountered lengthy lag times in the awarding of full annual business permits. Every legal operator must eventually obtain a full annual permit.
Creation of the provisional licenses didn’t completely solve the problem, however, and the cannabis industry sounded the alarm earlier this year as temporary licenses began expiring and threatened to put much of the legal supply chain on hold.
Provisional Licenses Extended
The actual text of the AB97 provisions appear below:
(a) A licensing authority may, in its sole discretion, issue a provisional license to an applicant if the applicant has submitted a completed license application to the licensing authority, including the following, if applicable:
(1) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not complete, evidence that compliance is underway.(2) If compliance with local ordinances enacted pursuant to Section 26200 is not complete, evidence that compliance is underway.(b) A provisional license issued pursuant to this section shall be valid for no more than 12 months from the date it was issued. If the licensing authority issues or renews a provisional license, they shall include the outstanding items needed to qualify for an annual license specific to the licensee.(c) A licensing authority may, in its sole discretion, renew a provisional license until the licensing authority issues or denies the provisional licensee’s annual license.(d) A licensing authority may, in its sole discretion, revoke or suspend a provisional license if the licensing authority determines the licensee failed to actively and diligently pursue requirements for the annual license.(e) A licensing authority shall cancel a provisional license upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, or withdrawal of an application for licensure.(f) Except as specified in this section, the provisions of this division shall apply to a provisional license in the same manner as to an annual license.(g) Without limiting any other statutory exemption or categorical exemption, Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to the issuance of a license pursuant to this section by the licensing authority.(h) Refusal by the licensing authority to issue a license pursuant to this section or revocation or suspension by the licensing authority of a license issued pursuant to this section shall not entitle the applicant or licensee to a hearing or an appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division and Sections 26031 and 26058 shall not apply to licenses issued pursuant to this section.(i) This section shall remain in effect only until January 1, 2025, 2022, and as of that date is repealed.