California Suspends 394 Cannabusiness Permits

California regulators suspended 394 cannabis business permits amid an ongoing crackdown on unlicensed operators; the suspensions include retailers, distributors, delivery services, and microbusinesses who were not seed-to-sale compliant.

Full story after the jump.

California has suspended 394 cannabis business permits, affecting about 5 percent of the state’s legal supply chain, the Associated Press reports. The move will temporarily reduce the number of legal cannabis operators in the state amid a crackdown on unlicensed operations.

The suspensions include retailers, distributors, delivery services, and microbusinesses that have not completed steps required for the seed-to-sale tracking system, Metrc, according to the Bureau of Cannabis Control.

Bureau spokesman Alex Traverso said all of the suspended businesses had ample time to complete the requirements, and the companies must stop all operations until their licenses are reinstated. He indicated that the requirements only take about three hours to complete and doesn’t think any of the companies will refuse of comply.

“These were just the stragglers. It turned out to be a couple extra months that we gave them. It’s just a matter of getting a password, getting a log-in and doing the training.” – Traverso, to MJBizDaily

California has 7,392 licensed cannabusinesses. The bureau oversees 2,630 companies with either provisional or annual licenses. The state Department of Public Health oversees another 932 manufacturers, while the Department of Food and Agriculture oversees 3,830 farmers.

Josh Drayton of the California Cannabis Industry Association said the action incentivizes the illicit market which he called “a much more affordable option” for consumers. He added that what regulators and the industry should be focused on is “access and affordability.”

According to the MJBizDaily report, the suspensions apply to 63 retailers, 61 delivery services, 47 microbusinesses, 185 distributors, and 29 distributors that are transport-only.

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