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https://www.omarfigueroa.com/endofprovisionals/By Lauren Mendelsohn & Omar Figueroa

December 2024

Key Deadline Arrives

A major regulatory deadline looms for California cannabis businesses, as January 1, 2025 is the final date when the Department of Cannabis Control (DCC) can renew provisional licenses for commercial cannabis operations statewide. There is an exception for local equity retailers’ (non-storefront and storefront), whose provisional license may be renewed until the annual license is issued/denied, or until five years from the date the provisional license was issued, whichever is earlier. Bus. & Prof. Code § 26050.5.

DCC Alert: Major Deadline for Provisional Licenses

Timeline: Key Dates for Provisional Licenses

Provisional Cannabis Licenses

Provisional licenses are discussed in Section 15001.0 through Section 15001.4 of Title 4 of the California Code of Regulations. They are a sort of intermediary type of license that could be obtained without having to fulfill the CEQA (California Environmental Quality Act) and CDFW (California Department of Fish and Wildlife) related aspects of Annual licensure, though progress towards satisfying these requirements was needed to be able to renew a Provisional license.

While Provisional licenses were only supposed to last until 2023, Assembly Bill 141 (2021) extended this date and added some exceptions for equity operators. As of December 27, 2024 there were approximately 2030 provisional licenses and 6,650 annual licenses in the DCC’s database.

How are Annual Licenses Different?

The major difference between Provisional Licenses and Annual Licenses is the appeal rights associated with revocation, suspension, or denial of each. An applicant for an Annual cannabis license can appeal the DCC’s decision if they are denied, and an Annual licensee can appeal if the DCC revokes their license. 4 C.C.R . §15021. However, provisional license holders and applicants do not have this same recourse. 4 C.C.R . §150001(e); but see 4 C.C.R. §15001.3, “Notice of Provisional License Review.”

Besides this important exception, provisional and annual licenses are essentially the same – they each last for one year, cost the same amount (per license type) to activate or renew, and must abide by the same laws and regulations. Bus. & Prof. Code §26050.2(k); 4 C.C.R. §15001(a).

Converting to an Annual License

Converting from a provisional license to an annual license Converting from a provisional license to an annual license requires satisfying the requirements of annual licensure as well as making sure that all local requirements are met.

To do this, a licensee must submit a Science Amendment via the DCC’s licensing portal which contains any remaining documentation that would be required for an annual license, as well as respond to any Deficiency Notices through the portal. Additionally, any fees due to the DCC must be paid.

Questions?

Questions for the DCC regarding the transition of provisional licenses can be directed to info@cannabis.ca.gov. Additionally, our team is available to help operators navigate this critical deadline.

This information is provided as a public educational service and is not intended, nor should be construed, as legal advice. For specific questions regarding provisional and annual cannabis licenses in California, contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential consultation.