MBD: California Sees a Cannabis License Contraction in 2019
2019 saw a notable decrease in the number of marijuana business licenses as temporary permits across the state gradually expired, Marijuana Business Daily reports. The website’s latest analysis shows a 48% decline in licenses for cultivation since late 2018/early 2019. Manufacturers saw a 29% drop, distributors 17%, deliveries 14%, microbusinesses 12%, and storefronts 7%.
The state stopped issuing temporary licenses as of Jan. 1. Those in existence remain operative until they reach their expiration dates.
As Marijuana Business Daily reports, many businesses that had temporary licenses found it difficult to secure permanent licensing, which requires much more compliance and paperwork, not to mention fees that can reach into the hundreds of thousands of dollars.