More than a fifth of the cannabis companies in Sacramento, California, are confronting the possibility of at least a temporary suspension of operations on the first day of February.

City regulators sent notices to dozens of registered marijuana businesses in December as a reminder they had not formally completed the process for acquiring a Sacramento business operations permit.

Though many have finished the process since then, officials in California’s state capital said last week that 58 businesses still have not completed the paperwork and might have to cease operations as of Feb. 1 until they can get it in order.


Here’s what you need to know:
“We felt that it was our obligation to ensure that our applicants were moving forward, and if they weren’t, then they’re no longer going to be able to continue to operate,” Sacramento Assistant City Manager Leyne Milstein said.

  • The city has a total of 265 pending marijuana business applications, including many that are already operational, Milstein said.
  • So far, the city has issued 107 licenses, including 85 operating permits for companies that have completed the entire process.
  • The 58 that face closure are cultivators, manufacturers, distributors and delivery services. None are retail storefronts, Milstein said.
  • Milstein noted letters went out to license applicants last July, reminding all that they needed to finish the permitting process. Since then, many have complied.

 

  • Read full report

 

About 20% of licensed marijuana companies in California’s capital city face temporary closure