Things are indeed developing rapidly for Californian lovers of marijuana. In our last post, we thrilled with news of the Tax Guide for Cannabis Business hot off the press. Or should we say newly released in cyber space. Whatever the case, the cause is moving forward regardless of activities afoot in the U.S. Department of Justice.
This week, the California Bureau of Cannabis Control announced plans for interim commercial cannabis licenses effective 1 January 2018. We note these are under the Medicinal and Adult Use Cannabis Regulation and Safety Act AKA MAUCRSA. Hence, we are still waiting for news of plans for cultivator and manufacturer licenses that will follow.
In mid-November, we expect the California Bureau of Cannabis Control to start accepting applications for commercial cannabis licenses. These will permit legitimate operations to commence on 1 January 2018, and continue for 120 days. During this period, commercial operators must apply for regular state licenses, and be able to provide the information we list below. If a situation beyond their control prevents this happening, they may apply for an extension(s).
For purposes of clarity, we post the preamble to the Bureau’s notice first, in full herewith:
“TEMPORARY LICENSE APPLICATION INFORMATION
Business and Professions Code section 26050.1 allows the Bureau to issue temporary licenses. A temporary license is a conditional license that allows a business to engage in commercial cannabis activity for a period of 120 days. The Bureau can only issue a temporary license if the applicant has valid license, permit, or other authorization issued by the local jurisdiction.
The Bureau intends to start issuing temporary licenses January 1, 2018 and expects to begin accepting applications prior to that date.
NO TEMPORARY LICENSE WILL BE EFFECTIVE PRIOR TO JANUARY 1, 2018”
Information Required of Applicants for Temporary Licenses
- A valid business license, authorization or permit from the local authority agreeing they may engage in commercial cannabis
- Whether they wish to trade in adult use, or medical cannabis: In other words, whether they want A or B-license type approval
- The name of the individual or business applicant, plus whether they require a retailer, micro business, or distributor, etc. license
- Comprehensive details of both the applicant and the business owner(s) – An ‘owner’ is a CEO, director, 20%-plus shareholder, or a person who exercises ‘direction, control, or management’.
- The physical address of the business, plus a title deed or consent of the premises owner, proving right to occupy and trade
- A diagram of the business layout at the premises, showing the subdivision of the space and the purposes thereof
Without local approval, all else is for naught. We recommend starting at this point, and chasing it down as fast as possible. We are available to assist with further information and advice as necessary. We wish you every success in your commercial cannabis endeavors.