Legal Update - March Update

As the industry remains in a state of influx due to market fall, both the state and local requirements for licensing remain in full force and effect. Most critical to note is the key dates for provisional licenses. AB 141 and SB 160 took effect in July 2021 and have set into play the sunset grace period timeline for operators to submit license applications that would allow them to obtain a provisional license. These dates are critically important because after January 1, 2023 cultivators will no longer be permitted to renew provisional licenses if they hold licenses in excess of 22,000 square feet on a single site.


To ensure all operators are aware of these requirements, below are 2 key dates to highlight that are quickly approaching:

  • March 31, 2022 – Deadline to submit an application to be considered for a provisional license

  • Exceptions: license applications for mixed light and indoor cultivation less than 22,000 square feet of contiguous premises and outdoor cultivation less than 20,000 square feet

  • June 30, 2022 – This is the last day the DCC will issue provisional licenses for all license types

  • Exceptions: license applications for mixed light and indoor cultivation less than 22,000 square feet of contiguous premises and outdoor cultivation less than 20,000 square feet

  • Local equity applications that are not the new up and coming 5, 5A or 5B license type.

What does this mean to you as a local operator? The most critical issue facing the local cultivators is the entitlement of their land which in turn establishes that the property is eligible for and has met CEQA compliance. The state will not issue an annual unless and until a property has been deemed CEQA compliant. The local industry has experienced over the last few years the difficulty in obtaining a commercial cannabis land entitlement. There are big ticket items required such as public water systems, drinking water treatments, fire suppression requirements and a plethora of other items. I emphasize to you all how critical that these items are and need to be achieved so entitlements are approved and you can be issued your annual licenses.


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