Nearly 400 CA Marijuana Business Licenses Suspended

Friends,

Yesterday, news broke that the California Bureau of Cannabis Control suspended nearly 400 marijuana business licenses based mostly on the lack of utilization of the track and trace system in CA, Metrc. Any company that received a provisional license was required to sign up for Metrc within five days of getting the license and also was required to take Metrc training and begin using the system. The shutdown is affecting 10% of the legal marijuana dispensaries and 20% of legal delivery businesses. For more information, click here.

This is an unfortunate example of the consequences of failing to be in strict compliance with CA state rules. McAllister Garfield has anticipated a ramping up in enforcement actions by the BCC and local authorities given that there has been little enforcement to date. As a result, we’ve recently created a CA rules compliance program to help our clients assess their regulatory compliance. If you have any questions about these recent enforcement actions or McAllister Garfield’s CA rules compliance program contact me at your convenience.

Sincerely,
Sean T. McAllister, Esq.