After a very tough few months for the MJ industry four or more California marijuana companies have sued the state. The legal action was taken after regulators revoked provisional business licenses. The reason they are suing was alleged that the companies were treated unfairly and not allowed to appeal the revocations to an independent mediator.
Last week, there were around 11,642 active cannabis business licenses in California. 2,929 of those are classified as “annual” licenses, according to data from the Department of Cannabis Control (DCC). Around 75% of the active permits are categorized as provisional licenses, which face lower thresholds a business must meet to obtain permits.
They have stopgap measures, and far fewer protections built into the law. The provisional license holders are not afforded due process rights in the same way an annual license holder would be. While annual license holders are required to meet a stronger set of requirements, including compliance with environmental laws of California.
James Anthony, an Oakland attorney representing the four cases said “it’s unclear when a judge may decide the cases.” Anthony continued
“They have more to lose than we do. If we lose, we’re just stuck with the status quo. But if they lose … they have to respect our constitutional rights. So they keep cutting deals with me.”