Breaking News, cannabis license suspension in California! As of November 6, 2019, the state of California has made it a problem for almost four hundred business owners by suspending their cannabis license. This move has temporarily paralyzed the market and a portion of the cannabis supply chain that ranges from distributors to retailers. These companies that have been affected are not allowed to conduct any sales transactions. Their cannabis license has to be reinstated into an active status. With this temporary reduction of legal marijuana businesses, it will put a strain on the other cannabis dispensaries to serve the communities.
On November 1, 2019, the BCC or Bureau of Cannabis Control issued 394 notices to deliver services, retailers, micro-businesses and distributors. The notices addressed the fact that these business owners won’t be able to use their cannabis license to conduct any related business. They have to go through a mandatory training of the track and trace system and they also have to do the credentialing training. Well, that is what the agency’s spokesperson said.
The cannabis license for these business owners included:
- 47 micro-business owners
- 29 transport-only distributors
- 61 delivery service providers
- 63 retailers
- 185 distributors
As it stands right now, the BCC supervises more than two thousand six hundred cannabis companies that have yearly or provisional licenses. On the other hand, the CDPH or California Department of Public Health manages nine hundred and thirty two more businesses that include manufacturers. The CDFA or Department of Food and Agriculture supervises more than three thousand eight hundred marijuana farmers. In any event, the state of California is known to have more than seven thousand three hundred cannabis businesses that are licensed right now.
Track and Trace System
One main reason for the shut down or suspension of cannabis license for each of these companies affect is that they failed to finish up the steps necessary for the track and trace system. According to one spokesperson of BCC, they were given enough time by the agency to do so. Most of these business owners knew that this step was mandatory. The track and trace system required that the business owners of these marijuana dispensaries upload their inventory data. In so doing, the state can keep track of their supply chain using metric software. The track and trace system is also important in awarding provisional licensing and then transitioning to a permanent cannabis license that is renewed every year. The BCC has indicated that the provisional or temporary cannabis license of these business owners expired by August 2019.
The Required Procedure
By then, it was apparent that none of these business owners had followed the required procedure. When a business receives the provisional license, there is a five day grace period given to sign up to the track and trace metric system. This allows them to take the necessary training so they can start using the system. These business owners hadn’t followed through and thus faced the consequences of having their cannabis license suspended. So, the BCC sent a final notice indicating that by November 1, 2019, all of these companies in question were to sign up to the metric system or have their cannabis license suspended.
As it stands now, if they were to follow the required procedure, these companies would receive their credentials and have the suspension lifted. The officials at BCC indicated that it only takes three hours to finish up the necessary requirements. Once completed, the suspension of the cannabis license will be lifted. The state’s spokesperson doesn’t think that any of these businesses will refuse or refrain from complying.