SB-59 was introduced by Senator Caballero on December 7. The bill proposes to extend provisional licenses until 2028. If licensees have not complied with the California Environmental Quality Act (“CEQA”) by January 2022 their provisional licenses will expire, and they will not be eligible for an annual license, so will need to cease operating. This bill is important for the industry because licensees are not eligible for an annual license until they complete CEQA. CEQA is a long and expensive process and many licensees are still several years away from complying with the Act. Given that January 2022 is now only a year away, this bill could provide necessary relief to licensees who will need more than a year to complete CEQA and would be forced to shut down in 2022. A significant number of licensees are in this position and losing them in 2022 would have a major impact on the overall health of the California cannabis market. The pandemic has caused municipal planning departments to shut down and work remotely, which has slowed the permitting and inspecting process and caused CEQA-related delays. This bill would give licensees some breathing room to complete CEQA over the next several years.

 

 

Following up on the hemp bill introduced last year, Assembly Member Aguiar-Curry introduced AB-45 regarding industrial hemp products. The bill would state that a dietary supplement, food, beverage, cosmetic, or pet food is not adulterated by the inclusion of industrial hemp or cannabinoids, extracts, or derivatives from industrial hemp if those substances meet specified requirements. We are tracking the progress of this bill closely and will keep you informed of any updates.