Provisional Cannabis Cultivation License
On September 27, 2018, Governor Brown signed Senate Bill 1495. The Bill creates a provisional cannabis cultivation license.
To qualify for a provisional cannabis cultivation license, an applicant must:
The provisional license will be valid for 12 months from the date issued [26050.2(b)]. The provisional license will not be renewable and denial is not appealable [26050.2(b) and (d)].
The goal of SB1459 is to create a pathway to full commercial cannabis licensing. A temporary license is only valid for 120 days. Its possible to get extensions for temporary licenses, but this creates on-going administrative headaches. The provisional license will allow a lengthier period of time for applicants to finalize licensing. The provisional licensee must submit an annual cultivation application prior to the expiration of the provisional license. Therefore, approval of the annual cultivation application must occur within 12 months from issuance of the provisional license.
A full description of the provisional license is available with the California Department of Food and Agriculture CalCannabis Cultivation Licensing.
To qualify for a provisional cannabis cultivation license, an applicant must:
- Holds or held a temporary license for the same premises and the same commercial cannabis activity for which the license may be issued;
- Submit a completed license application to the licensing authority, including evidence that compliance with the California Environmental Quality Act (CEQA) is underway; and
- Pay the application fee.
The provisional license will be valid for 12 months from the date issued [26050.2(b)]. The provisional license will not be renewable and denial is not appealable [26050.2(b) and (d)].
The goal of SB1459 is to create a pathway to full commercial cannabis licensing. A temporary license is only valid for 120 days. Its possible to get extensions for temporary licenses, but this creates on-going administrative headaches. The provisional license will allow a lengthier period of time for applicants to finalize licensing. The provisional licensee must submit an annual cultivation application prior to the expiration of the provisional license. Therefore, approval of the annual cultivation application must occur within 12 months from issuance of the provisional license.
A full description of the provisional license is available with the California Department of Food and Agriculture CalCannabis Cultivation Licensing.
Full Text SB 1459 - Business and Professions Code 26050.2 - Provisional Cannabis Cultivation License
SB 1459, Cannella. Cannabis: provisional license
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities.
Existing law requires an applicant for any type of MAUCRSA license to provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. Existing law requires the issuance of MAUCRSA licenses to be valid for 12 months from the date of issuance and authorizes the license to be renewed annually. MAUCRSA prohibits a licensing authority from approving an application for a state license if approval of the state license will violate the provisions of certain local ordinances or regulations. MAUCRSA, until January 1, 2019, authorizes a state licensing authority to issue a temporary license if the applicant submits, among other things, a copy of a specified authorization issued by a local jurisdiction. MAUCRSA requires the temporary license to be valid for a period of 120 days and authorizes the temporary license to be extended for additional 90-day period at the discretion of the licensing authority. MAUCRSA establishes the Cannabis Control Appeals Panel and authorizes any person aggrieved by specified decisions of a licensing authority related to disciplining any license to appeal the licensing authority’s written decision to the panel. MAUCRSA prohibits the refusal by the licensing authority to issue or extend a temporary license from entitling the applicant or licensee to a hearing or an appeal of the decision.
This bill, until January 1, 2020, would authorize a licensing authority to issue a provisional license if specified conditions are met. By requiring additional applications to be signed under penalty of perjury, the bill would expand the scope of the crime of perjury, and would thereby impose a state-mandated local program. The bill would require the provisional annual license to be valid for 12 months and would prohibit the license from being renewed. The bill would require the provisions of MAUCRSA to apply to a provisional license in the same manner as to an annual license, except as specified. The bill would exempt the issuance of a provisional license from the California Environmental Quality Act. The bill would prohibit the refusal by the licensing authority to issue a provisional license or revocation or suspension by the licensing authority of a provisional license from entitling the applicant or licensee to a hearing or an appeal of the decision.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
This bill would declare that it is to take effect immediately as an urgency statute.
DIGEST KEY
Vote: 2/3 Appropriation: no Fiscal Committee: yes Local Program: yes
Existing law requires an applicant for any type of MAUCRSA license to provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate. Existing law requires the issuance of MAUCRSA licenses to be valid for 12 months from the date of issuance and authorizes the license to be renewed annually. MAUCRSA prohibits a licensing authority from approving an application for a state license if approval of the state license will violate the provisions of certain local ordinances or regulations. MAUCRSA, until January 1, 2019, authorizes a state licensing authority to issue a temporary license if the applicant submits, among other things, a copy of a specified authorization issued by a local jurisdiction. MAUCRSA requires the temporary license to be valid for a period of 120 days and authorizes the temporary license to be extended for additional 90-day period at the discretion of the licensing authority. MAUCRSA establishes the Cannabis Control Appeals Panel and authorizes any person aggrieved by specified decisions of a licensing authority related to disciplining any license to appeal the licensing authority’s written decision to the panel. MAUCRSA prohibits the refusal by the licensing authority to issue or extend a temporary license from entitling the applicant or licensee to a hearing or an appeal of the decision.
This bill, until January 1, 2020, would authorize a licensing authority to issue a provisional license if specified conditions are met. By requiring additional applications to be signed under penalty of perjury, the bill would expand the scope of the crime of perjury, and would thereby impose a state-mandated local program. The bill would require the provisional annual license to be valid for 12 months and would prohibit the license from being renewed. The bill would require the provisions of MAUCRSA to apply to a provisional license in the same manner as to an annual license, except as specified. The bill would exempt the issuance of a provisional license from the California Environmental Quality Act. The bill would prohibit the refusal by the licensing authority to issue a provisional license or revocation or suspension by the licensing authority of a provisional license from entitling the applicant or licensee to a hearing or an appeal of the decision.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
This bill would declare that it is to take effect immediately as an urgency statute.
DIGEST KEY
Vote: 2/3 Appropriation: no Fiscal Committee: yes Local Program: yes
BILL TEXT for Provisional Cannabis Cultivation License
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 26050.2 is added to the Business and Professions Code, to read:
26050.2.
(a) A licensing authority may, in its sole discretion, issue a provisional license to an applicant if the following conditions are met:
(1) The applicant holds or held a temporary license for the same premises and the same commercial cannabis activity for which the license may be issued pursuant to this section.
(2) The applicant has submitted a completed license application to the licensing authority, including evidence that compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is underway.
(b) A provisional license issued pursuant to this section shall be valid for 12 months from the date issued and shall not be renewed. 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.
(c) 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.
(d) 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 shall not apply to licenses issued pursuant to this section.
(e) This section shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SEC. 3. The Legislature finds and declares that Section 1 of this act adding Section 26050.2 to the Business and Professions Code furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016.
SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
The significant number of cultivation license applications pending with local authorities that do not have adequate resources to process these applications before the applicants’ temporary licenses expire on January 1, 2019, threatens to create a major disruption in the commercial cannabis marketplace.
SECTION 1. Section 26050.2 is added to the Business and Professions Code, to read:
26050.2.
(a) A licensing authority may, in its sole discretion, issue a provisional license to an applicant if the following conditions are met:
(1) The applicant holds or held a temporary license for the same premises and the same commercial cannabis activity for which the license may be issued pursuant to this section.
(2) The applicant has submitted a completed license application to the licensing authority, including evidence that compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is underway.
(b) A provisional license issued pursuant to this section shall be valid for 12 months from the date issued and shall not be renewed. 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.
(c) 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.
(d) 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 shall not apply to licenses issued pursuant to this section.
(e) This section shall remain in effect only until January 1, 2020, and as of that date is repealed.
SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SEC. 3. The Legislature finds and declares that Section 1 of this act adding Section 26050.2 to the Business and Professions Code furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016.
SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
The significant number of cultivation license applications pending with local authorities that do not have adequate resources to process these applications before the applicants’ temporary licenses expire on January 1, 2019, threatens to create a major disruption in the commercial cannabis marketplace.
Sacramento Cannabis Attorney
Attorney Trevor Carson currently represents cultivators, delivery, dispensaries, manufacturing and distribution businesses. Trevor acts as an outside compliance officer handling temporary, provisional and annual cannabis cultivation licensing. In 2015 and 2018, he was named by Sacramento Magazine as a top lawyer in Sacramento and has been named a Rising Star by Super Lawyers Magazine for four straight years. To learn more about our law firm's cannabis practice or the provisional cannabis cultivation license, please visit our cannabis page or contact our office.
*The information provided in this post does not constitute legal advice or opinion. The information is for guidance purposes only. Individual situations vary and the State of California could change the licensing structure, including the Provisional Cannabis Cultivation License. This blog article may contain language which could be read as a testimonial or endorsement. That testimonial or endorsement does not constitute a guarantee, warranty, or prediction regarding the outcome of your legal matter. This blog articles is an Advertisement and or Newsletter.