California seeks to avoid recreational marijuana shortage

California is taking steps to prevent a product shortfall when the state’s recreational marijuana program launches Jan. 2.

The state plans to provide temporary, four-month licenses to some marijuana growers, testing labs and distributors to ensure there will be enough product to keep retailers supplied, the Los Angeles Times reported.

California’s decision was prompted by a supply shortage in Nevada after the state launched its recreational program July 1.

Nevada’s shortfall stemmed from a dispute over distribution of adult-use cannabis and resulted in higher wholesale prices and a negative impact on the state’s medical marijuana market.

Lori Ajax, director of the California Bureau of Medical Cannabis Regulation, said the agency’s goal is to issue enough licenses “so we don’t have a break in the supply chain,” according to the newspaper.

The state’s adult-use marijuana law mandates that licenses be issued to grow, test, distribute and sell marijuana for recreational use beginning Jan. 2.

California Sen. Mike McGuire, who chairs the Senate Governance and Finance Committee, estimated that 20,000 marijuana growers will seek licenses, the Times reported.

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2 comments on “California seeks to avoid recreational marijuana shortage
  1. Hastings RH on

    no way there are 20,000 growers that can afford to comply with the new regs -maybe a few hundred? Just a piece of land that is zoned properly will cost a million bucks. Permitting and construction cost will add another mil easy. Not worth the hassle

  2. mike on

    If you read the regs and saw the fees, they are designed to eliminate any person that is not backed by a large company with the resources and experience with government contracts to comply with all requirements. It will take more than four months to just navigate the permit processes with all the state and local agencies, unless of course you have ‘friends’ that can fast track it, i.e., waive many of the requirements because of the ’emergency’. Plus the regs specifically exclude liquor licensees which seem the logical people to give the temp licenses to as they are already regulated. That way on Jan 2 the temps expire and everyone will have a fair chance for a permanent license.

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