Cannabis Licensing Authorities Consolidation Part Of Governor’s Proposed State Budget

CALIFORNIA:  Governor Newsom’s fiscal year 2021-2022 budget proposal released today includes a proposal to consolidate the three state licensing authorities into a single Department of Cannabis Control. This proposal was first announced in January 2020 but was delayed due to the impacts of the COVID-19 pandemic. If approved by the Legislature, the new Department will be created on July 1, 2021.

In an effort to improve access to licensing and simplify and centralize regulatory oversight of commercial cannabis activity, the Governor’s Budget proposes to consolidate licensing and associated regulatory functions into a single state Department. This proposal seeks to better serve stakeholders including cannabis businesses, local governments, and members of the public by acting as a single point of contact as well as leverage existing funding in a more efficient way by reducing redundancies. Further, it seeks to establish uniform operations and procedures that will streamline processes for applicants and licensees and offer better service and coordination.

The three state licensing authorities have begun to prepare and plan for the consolidation and, most importantly, to ensure continuity of operations. We are committed to making this transition in a manner that reduces unnecessary disruption to the marketplace and California businesses. Our team members will remain available to applicants and licensees as they continue their routine business activities.