California Cannabis Provisional License Application Deadline Reminder

4/3/23 Last Day for Provisional License Application Submissions

According to Business and Professions Code §26050.2(a)(3)(D), local equity applicants have until March 31, 2023 to submit license applications to the California Department of Cannabis Control (“DCC”) to be considered for provisional state licenses. However, the DCC announced on March 24th that due to the Cesar Chavez holiday, it will accept applications through 11:50 pm on Monday, April 3, 2023. Applications submitted after April 3, 2023, will only be considered and processed for annual licenses. A “local equity applicant” is an applicant who has submitted, or will submit, an application to a local jurisdiction to engage in commercial cannabis activity within the jurisdictional boundaries of that jurisdiction and who meets the requirements of that jurisdiction’s local equity program.” (See Business and Professions Code §26240(c)).

Requirements for Provisional Cannabis License

In order to be considered for a provisional license, a local equity applicant must:

1. Submit a complete application by April 3, 2023, and
2. Pay all required application fees by April 3, 2023.

A complete application for licensure includes, all applicable items listed in §15002 and §15011 of the DCC Regulations, which include, among other things: 

1. The legal first and last name of the applicant and the legal business name of the commercial cannabis business.
2. Every business trade name, fictitious business name, and doing business as (“DBA”) under which the commercial cannabis business will operate.
3. The commercial cannabis license for which the applicant is applying, and whether the applicant is requesting that the license be designated as medicinal, adult-use, or both, if applicable.
4. The physical address of the premises or the assessor parcel number. 
5. The mailing address for the commercial cannabis business, if different from the premises address.
6. The telephone number for the commercial cannabis business.
7. The website address of the commercial cannabis business, if any.
8. The number under which the commercial cannabis business files federal taxes, such as a federal employer identification number, federal taxpayer identification number, individual taxpayer identification number, Social Security number, or national identification number.
9. Contact information for the owner of the commercial cannabis business who will serve as the designated primary contact person or designated responsible party for the business, including the name, title, phone number, and email address of the individual.
10. The full legal name, mailing address, primary contact phone number, email address, and preferred method of written communication (e.g., standard mail or email) of each individual or entity serving as agent for service of process for the commercial cannabis business, if any.
11. A description of the business organizational structure of the commercial cannabis business, such as partnership, joint venture, limited liability company, sole proprietorship, trust, or corporation.
12. Upon request, business formation documents that are not available online through the California Secretary of State, which may include, but are not limited to operating agreements, bylaws, and other documents that establish ownership or control over the commercial cannabis business. If the commercial cannabis business is held in trust, the applicant shall provide a copy of the certificate of trust establishing trustee authority.
13. A commercial cannabis business that is a foreign corporation or foreign limited liability company shall include in its application a certificate of qualification, certificate of registration, or certificate of status issued by the California Secretary of State.
14. A complete list of every financial interest holder of the commercial cannabis business.
15. A complete list of every owner of the commercial cannabis business.
16. All required owner information for every owner of the commercial cannabis business. 
17. Evidence that the commercial cannabis business has the legal right to occupy and use the proposed location. 
18. An attestation that the proposed premises is in compliance with Business and Professions Code section 26054(b) and, if requested, evidence of compliance. 
19. For a commercial cannabis business with 20 or more employees, the applicant shall either provide a notarized statement that the commercial cannabis business will enter into and abide by the terms of a labor peace agreement or demonstrate that the commercial cannabis business has entered into a labor peace agreement by providing a copy of the signature page of the agreement. 
20. For a commercial cannabis business with fewer than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee.
21. A valid seller’s permit number issued by the California Department of Tax and Fee Administration, if applicable. If the commercial cannabis business has not yet received a seller’s permit, the commercial cannabis business shall attest that the commercial cannabis business is currently applying for a seller’s permit.
22. A compliant premises diagram.
23. Proof of a surety bond of at least $5,000 payable to the State of California for each licensed premises. 
24. The limited waiver of sovereign immunity required by section 15009, if applicable.
25. Evidence of exemption from, or compliance with, the California Environmental Quality Act as required by section 15010.
26. The commercial cannabis business’ State Employer Identification Number (SEIN) issued by the California Employment Development Department, if applicable.
27. For a commercial cannabis business with more than one employee, the applicant shall attest that the commercial cannabis business employs, or will employ within one year of receiving a license, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course.
28. Disclosure of whether the applicant has been denied a license or had a license suspended or revoked by the Department or any other state cannabis licensing authority. The applicant shall provide the type of license denied, suspended, or revoked, the name of the licensing authority, and the date of the denial, suspension, or revocation.

For an application for a license that includes cultivation activities, the following conditions must also be met:

1. The local equity license applicant provides any of the following documents:
   1. A final streambed alteration agreement;
   2. A draft streambed alteration agreement provided by the Department of Fish and Wildlife and signed and returned to the Department of Fish and Wildlife;
   3. Written verification by the Department of Fish and Wildlife that a streambed alteration agreement is not needed; or
   4. Written verification by the Department of Fish and Wildlife that the applicant has submitted a notification described in section 1602 of the Fish and Game Code, submitted payment of applicable fees pursuant to section 1609 of the Fish and Game Code, and is responsive to the Department of Fish and Wildlife as prescribed in section 26050.2 of the Business and Professions Code. 
2. The local equity applicant is not applying for a cultivation license for a premises that exceeds one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed light or indoor cultivation.
3. Issuance of the license would not cause the local equity applicant to hold multiple cultivation licenses on contiguous premises to exceed one acre of total canopy for outdoor cultivation, or 22,000 square feet for mixed-light or indoor cultivation. For the purposes of this subsection, premises will be considered contiguous if they are connected, touching, or adjoining.

To assist local equity applicants in the state license application process, the DCC sent out a helpful checklist of things to do in to prepare provisional license applications. The checklist suggests that provisional license applicants: 

1. Review current regulations for application requirements;
2. Gather and submit all requirements in accordance with California Code of Regulations section 15002 and 15011;
3. Follow the online instructions for how to apply;
4. Reach out to the applicable local jurisdiction for their local authorization; 
5. Provide CEQA documentation showing proof your environmental review is underway;
6. For cultivation licenses, provide a final streambed alteration agreement or documentation from the California Department of Fish and Wildlife that meets the requirements of section 15001.1(c)(2) of DCC’s regulations;
7. Make sure you are not requesting a license that exceeds one acre of outdoor cultivation, 22,000 square feet of mixed-light or indoor cultivation, or licenses on contiguous premises that exceed these size limitations; and
8. If paying the application fee by cash, make an appointment to pay before the March 31, 2023 deadline by emailing payments@cannabis.ca.gov.  

If you are a local equity applicant and would like assistance preparing and submitting your California state license application materials before the April 3, 2023 deadline for provisional license consideration, contact the cannabis law attorneys at Rogoway Law today.