The problem: California’s legacy cannabis businesses are getting left behind. Regulatory requirements are expensive to meet and it is all happening too quickly.
Transitioning is often times more difficult than starting fresh. Often the existing real estate is sub par for the regulated market; moving an operation takes a lot of time. Business culture in the unregulated market is very different from what will be required to succeed in the regulated market.
People who have worked in this industry all their lives are being forced to choose between going out of business and remaining criminal. Many of these folks have no retirement, no health insurance and will be very vulnerable without their businesses.
Consultants are backed up months and have been working 60 plus hour weeks. The local agencies are equally overwhelmed.
Bottom line: California needs more time to transition.
The solution: slow the emergence of the regulated cannabis market to provide adequate timelines for businesses to transition.
- Until January 1, 2023 no single entity in California may apply for or be issued more than 1 type 3 license.
- Until January 1, 2023 no single entity in California may apply for or be issued more than a cumulative 1 acre in cultivation, except a cooperative or a Type 10A
- Until January 1, 2028 no entity in California may apply for or be issued more than 5 retail licenses.