TEMPORARY LICENSING UNDER MAUCRSA STARTING JANUARY 1, 2018

Temporary Licensing under Business and Professions Code § 26050.1. as enacted by the
“Medicinal and Adult-use Cannabis Regulation and Safety Act” (MAUCRSA).

SB 94, the Trailer Bill attached to the California Budget, passed with a Super Majority Vote on June 15, 2017, which enacted the “Medicinal and Adult-Use Regulation and Safety Act”.  Statewide commercial cannabis activity license application filings are anticipated to commence on January 1, 2018.  At that time, Temporary Statewide Licensing is available under the MAUCRSA in that notwithstanding subdivision (c) of Section 26050, which provides that a licenseshall be valid for 12 months from the date of issuance, until January 1, 2019, a licensing authority may, in its sole discretion, issue a temporary license if the applicant submits all of the following:

(1) A written request to the licensing authority in a manner prescribed by the licensing authority.

(2) A copy of a valid license, permit, or other authorization, issued by a local jurisdiction, that enables the applicant to conduct commercial cannabis activity at the location requested for the temporary license.

(3) The temporary license application fee, if any, required by the licensing authority.

(b) Temporary licenses issued pursuant to this section are subject to the following conditions:

(1) Except as provided for in paragraph (4) below, the temporary license shall be valid for a period of 120 days and may be extended for additional 90-day periods at the discretion of the licensing authority. Temporary licenses shall only be eligible for an extension of the expiration date if the applicant has submitted a complete application for licensure pursuant to regulations adopted under this division.

(2) A temporary license is a conditional license and authorizes the holder thereof to engage in commercial cannabis activity as would be permitted under the privileges of the license for which the applicant has submitted an application to the licensing authority.

(3) Refusal by the licensing authority to issue or extend a temporary license shall not entitle the applicant to a hearing or appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division shall not apply to temporary licenses.

(4) A temporary license does not obligate the licensing authority to issue a nontemporary license nor does the temporary license create a vested right in the holder to either an extension of the temporary license or to the granting of a subsequent nontemporary license.

(c) This section shall remain in effect only until January 1, 2019, and as of that date is repealed.

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