MJBizMag November-December 2021 - 29

California
At least four California marijuana companies sued the state after regulators
revoked their provisional business licenses, alleging they were treated unfairly and
not allowed to appeal the revocations to an independent mediator. Roughly threequarters
of all cannabis licenses remain classified as " provisional, " the technical
term for temporary permits.
Department of Cannabis Control spokeswoman Christina Dempsey told
MJBizDaily via email: " DCC has filed proposed regulations to establish a process for
notifying provisional licensees when their provisional license is at risk of suspension
or revocation, or their application is being considered for denial. "
In legal filings, however, the California attorney general's office has argued that
provisional license holders are not entitled to any due process, particularly under
the U.S. Constitution's 14th Amendment, because the companies in question
operate in a federally illegal business.
So far, at least some of the four cases have had an impact: Two have been
resolved, with regulators reinstating the companies' business permits; the other two
cases are ongoing.
Advisory | Tax | Audit
Navigating a new industry raises a lot of questions.
Our Cannabis Advisors have the answers.
Our experience and industry knowledge has helped cannabis, hemp and CBD
growers, dispensaries and investors across the country stay one step ahead of
regulatory and tax issues, while positioning their businesses for growth and success.
John V. Pellitteri, CPA
Cannabis Practice Leader
grassicpas.com/cannabis
November-December 2021 | mjbizdaily.com 29

http://www.grassicpas.com/cannabis http://www.mjbizdaily.com

MJBizMag November-December 2021

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