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California Localities Detail Plans To Spend $100 Million To Fix Marijuana Licensing Logjam

Companies must transition to annual licenses by Jan. 1, 2026

California’s Department of Cannabis Control has started to disperse $100 million to 17 municipalities and counties to help them transition thousands of marijuana businesses holding temporary licenses over to annual permits.

The funding is intended to alleviate a bureaucratic logjam that has left thousands of marijuana companies with temporary, or so-called “provisional,” business licenses.

As a result, some provisionally licensed companies are in danger of shuttering, at least temporarily.

Local officials said they plan to use the $100 million to assist cannabis companies on a variety of fronts, including:

  • Providing direct grants to businesses to help them through the transition process.
  • Hiring staff and contractors to process more applications.
  • Helping applicants meet environmental compliance under the California Environmental Quality Act (CEQA). In many cases, CEQA compliance is costly and the approval process can take years.

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Marijuana Retail Report, is a national daily online trade publication serving retailers of marijuana products and accessories. News and information are geared strictly to select retail channels, with distribution limited to licensed collectives, recreational retailers, accessories retailers, and wholesalers.

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