California’s top cannabis regulatory agency sent shockwaves through the state’s marijuana industry on Monday and Tuesday after it inexplicably revoked the licenses of more than 300 businesses.
By Tuesday afternoon, the revocations appeared to have been reversed – but not before the apparent snafu had created heart palpitations for plenty of industry executives.
“It really shook the industry. It shook me. I canceled all my meetings in the afternoon yesterday just to solve this problem,” said Vince Ning, CEO of Oakland-based Nabis, a licensed distributor.
On Monday afternoon, the California Bureau of Cannabis Control (BCC) sent email notices to 300-plus marijuana licensees, saying their permits had been revoked because of failure to update their annual license applications with further requested information.
As of Tuesday afternoon, it was unclear exactly what happened, but the notices affected retailers, delivery services, distributors and microbusinesses – all companies overseen by the BCC.
Ning said his company’s Los Angeles distribution permit was temporarily revoked but that he was able to get the issue sorted out Monday afternoon simply by calling the BCC.
“They said we were fine,” Ning said. “They said we just submitted the information slightly late, so ultimately they just flipped the status back on the phone, and it worked out within an hour.”
Ning said his impression was there was “some sort of glitch in the system.”
He said he believed the issue could be traced back to a Jan. 11 email sent to a number of BCC licensees. The email requested further information for annual license applications. (The vast majority of California cannabis companies have been operating on provisional, not annual, licenses.)
Published: February 03, 2021
Founder & Interim Editor of L.A. Cannabis News