Sacramento Received $5.7M to Streamline Lengthy Cannabis Business Licensing Process

Sacramento Received $5.7M to Streamline Lengthy Cannabis Business Licensing Process

With all California businesses needing their annual license by June 30, 2022, the crunch is on! The time constraints have pushed Sacramento to apply for state funding that is expected to assist with the process of getting local cannabusinesses and applicants to change their licensure from temporary to full licenses.

According to the KCRA, the Department of Cannabis Control announced that Sacramento will receive this funding. Sacramento applied for this funding in November 2021. This comes from the local assistance grant program proposed by Governor Gavin Newsom, which was passed by the Legislature in July 2021.

Now that this program is in place, local jurisdictions are set to receive funding to transform the provisional cannabis licenses into annual licenses. This will let these businesses continue their operations under Cali law.

Cali is phasing out its provisional licenses. However, these licenses gave cannabusinesses a legal way to become involved in the legal space as they completed the local permitting processes and California Environmental Quality Act requirements. However, this program was supposed to phase out by January 1, 2022. But with Assembly Bill 141, the program was extended with rolling sunset dates based on applicant type and license.

Equally important to keep in mind is that al Cali cannabusinesses need to have their annual licenses sorted by June 30, 2022.

According to the Department of Cannabis Control, around 73 percent of cannabis licenses throughout the state and 80 percent in the city of Sacramento are provisional licenses.

Thus, with so many cannabusinesses still holding the provisional licenses, Sacramento plans to utilize the funding from the state to transition these businesses into the regulated market by granting them their annual licenses.

“In the coming months, the city plans to hire contractors to create a virtual cannabis navigation system in which both applicants and current license holders can receive assistance in regulatory compliance, planning, building, fire, and security issues,” explained Davina Smith, the leader of the city’s Office of Cannabis Management. “In addition, the city will be updating its ability to track an applicant’s/licensee’s progress in the cannabis permitting process so the City can proactively assist.”

Other cities are working hard on the process to transition cannabusinesses to annual licenses, as well.

Around $100 million in grant funding has recently been awarded to 17 cities and counties throughout the state.

“In their applications, several jurisdictions noted that the available grant funds will make significant impacts on existing application backlogs and create more efficient processes for the future,” the department outlined in a release. “One jurisdiction noted that without this funding, it would require approximately 3 to 4 years to complete a full review of pending applications.”

Now that Sacramento has received its funding, the county’s local cannabusinesses should receive their annual state licenses, allowing them to maintain compliance while operating in the legal market.

Out of the $5.7 million awarded, the county put $900,000 aside to fund security upgrades that will encourage its cannabusinesses to comply with new security demands the police department has put in place as a result of the recent cannabis burglaries.

What county are you in? Has it been granted any funding from the state? Will this impact your operation? Let us know in the comments below!

Louis Levey is the Content Success Manager and Founder at No Strings Content. He's passionate about helping cannabis businesses use content to attract, educate, and convert audiences. His hometown is Boca Raton, Florida, but he currently lives and works remotely in Chiang Mai, Thailand.

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