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More California cannabis companies sue state over revoked licenses

At least four California marijuana companies have 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.

Moreover, the newly-launched Department of Cannabis Control is ramping up company inspections and enforcement efforts, setting the stage for additional lawsuits from businesses alleging they were not afforded due process after the DCC pulled their provisional, or temporary, permits, attorneys predict.

“There will be hundreds of these lawsuits,” said James Anthony, an Oakland attorney who is spearheading the four cases. “There’s a tidal wave of revocations and cancellations coming, and every one them is going to be a lawsuit.”

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 are ongoing.

The legal tussling comes as industry officials and attorneys complain that regulators have been slow to issue full annual marijuana business permits. Roughly three-quarters of all cannabis licenses remain classified as “provisional,” the technical term for temporary permits.

Perhaps more importantly, industry attorneys noted the lack of due process could be rectified if enough stakeholders weigh in by Sept. 20 on a set of industry rules proposed by the DCC.

Monday is the deadline for a public comment period during which industry officials can submit suggested changes.

“Every single person should write in and say that the DCC has exceeded its scope of authority by promulgating regulations that do not afford due process rights to our operators,” said Los Angeles attorney Dana Cisneros, who represents one of the four companies suing the state over a revoked license.

To Read The Rest Of This Article By John Schroyer on MJBiz Daily

Published: September 17, 2021

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