Attorney predicts “a tidal wave” of marijuana license revocations and lawsuits in California

At least four cannabis companies have now filed lawsuits after having their provisional business licenses revoked by state regulators. That number is likely to grow as the new Department of Cannabis Control increases inspections and ramps up enforcement efforts, according to Marijuana Business Daily.

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

About 75% of the 11,642 active cannabis business licenses in California are provisional. State regulators have lagged in issuing actual marijuana business permits, so they’ve given many businesses provisional licenses in the meantime. But one of the downsides of a provisional license is the lack of due process rights. Provisional licenses can be revoked, suspended or denied renewal at regulators’ discretion “at any time,” says Deputy California Attorney General Patrick Boyne.

Cannabis companies complain they’ve been shut down for petty reasons, including as retribution from vindictive enforcement staff.

New draft rules from the DCC aim to make the process more fair and equitable, but cannabis companies say they don’t go nearly far enough. They say the issue of provisional permit revocations must be a top priority of discussion right now.

Read more at Marijuana Business Daily.


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