We just published a post on what cannabis businesses can be doing to stay ahead of the curve with respect to the coronavirus (COVID-19), which is shutting down businesses across the globe. In this post, my goal is to talk about things that California can do to ease the situation for California cannabis companies, all of which have a tough road ahead.
Before jumping into my recommendations, it’s worth noting the obvious: the state is extremely burdened right now and cannabis is probably nowhere near the top of the list of priorities. That said, if the state does nothing with respect to cannabis, the outcome will be that licensed businesses will fail, employees of those businesses will not be paid, and importantly, the illicit market will grow even further out of control. Here are some of my recommendations:
1. Extend Licenses
I don’t want to get too into the weeds on the history of temporary and provisional licenses under MAUCRSA. Needless to say, there are probably thousands of provisional licensees whose licenses expire between May and August 2020. Those businesses should not have to worry about re-applying in the near future. The agencies should just automatically extend all licenses