We just lately wrote about an announcement by the California Division of Meals and Agriculture (“CDFA”) that momentary license functions should be submitted by December 1, 2018 with a view to be reviewed on time for approval and issuance earlier than December 31, 2018. So far, California Division of Public Well being (“CDPH”) adopted go well with, however the California Bureau of Hashish Management (“BCC”) has not. It’s protected to say that BCC functions submitted after December 1, 2018 have a low likelihood of being issued this 12 months.
That is vital as a result of after January 1, 2019, these companies could have no authorized authority to challenge momentary licenses, and won’t achieve this. After January 1, 2019, solely provisional licenses might be issued, and solely then to events who maintain or held momentary licenses. Events that don’t have momentary licenses and thus can not get provisional licenses might be caught within the annual license logjam, which everybody is aware of strikes at a snails’ tempo. These deadlines can’t be solved with extra rules. They’re from MAUCRSA and solely the legislature can modify them. We wouldn’t depend on that taking place.
This time crunch locations would-be licensees whose native functions are below evaluate from California cities in a tricky spot. As a part of the state-level software course of, the above-linked MAUCRSA part requires candidates to fork over “[a] copy of a legitimate license, allow, or different authorization, issued by a neighborhood jurisdiction”, and cities should not going to state that an applicant is permitted whereas an software is below evaluate.
Some cities have provide you with inventive options to this drawback. The Los Angeles Division of Hashish Regulation (“DCR”), for instance, issued a launch stating that it will challenge to candidates from the second section of functions (which closed a number of months in the past) who’ve paid their software charges a neighborhood letter of authorization that could possibly be taken to the goal state company. The letter wouldn’t authorize industrial hashish exercise in Los Angeles. It might authorize an applicant to easily transfer into the momentary license section, with a view to ultimately safe the provisional license that might ultimately get them operational quicker. No less than one state company, in flip, has expressed that letters from localities could also be enough. Earlier this 12 months, the CDPH wrote that native authorization could take the type of a “letter of acknowledgement”.
L.A. is an enormous metropolis, and is swamped in functions. Our L.A. hashish enterprise and actual property legal professionals have seen another cities challenge letters of authorization, however others which have refused. It’s not clear whether or not many different cities would write a letter of authorization, or what they might be keen to say. However it’s definitely price reaching out to a metropolis to see if they are going to.