2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26050.5.

26050.5. (a) Until January 1, 2031, the department may, in its sole discretion, issue a provisional license for a local equity applicant, as defined in Chapter 23 (commencing with Section 26240), for retailer activities, if the applicant has submitted a completed license application to the department, provided that the applicant meets the following requirements:
(1) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not complete, evidence that compliance is underway.
(2) If compliance with local ordinances enacted pursuant to Section 26200 is not complete, evidence that compliance is underway.
(3) Compliance with paragraphs (5) and (11) of subdivision (a) of Section 26051.5.
(b) A provisional license issued pursuant to this section shall be valid for no more than 12 months from the date it was issued or renewed. If the department issues or renews a provisional license, it shall include the outstanding items needed to qualify for an annual license specific to the licensee.
(c) The department may, in its sole discretion, renew a provisional license for a local equity applicant for retailer activities issued pursuant to this section or Section 26050.2 until it issues or denies the provisional licensee’s annual license, subject to the requirements of this section, or until five years from the date the provisional license was originally issued pursuant to this section or Section 26050.2, whichever is earlier.
(d) If compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) is not yet complete, the department shall not renew a provisional license pursuant to this section unless the department has determined that one of the following requirements has been met:
(1) The lead agency is in the process of preparing a site-specific initial study, addendum, or checklist pursuant to Section 15063, 15164, 15168, or 15183 of Title 14 of the California Code of Regulations to demonstrate whether it is consistent with a previously circulated and adopted negative declaration, mitigated negative declaration, or environmental impact report.
(2) If a local jurisdiction is the lead agency, the lead agency has made substantial progress during the previous 12-month licensure term toward completing project-specific environmental review by drafting, preparing, or circulating for public review an environmental document pursuant to the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(3) If the department is the lead agency, information requested by the department of the provisional licensee demonstrates the furtherance of environmental review.
(4) Information submitted to the department by the provisional licensee applicant demonstrates evidence of substantial progress toward compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) during the previous 12-month licensure term.
(e) The department, in its sole discretion, may allow a provisional licensee to move locations after the date provisional licenses can no longer be issued provided that the new location is approved in compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code), and Chapter 6 (commencing with Section 1600) of Division 2 of the Fish and Game Code. If all other renewal requirements are satisfied, the department may also renew the license at the new location.
(f) The department may, in its sole discretion, revoke or suspend a provisional license if it determines the licensee failed to actively and diligently pursue requirements for the annual license. The department shall adopt regulations clarifying what constitutes actively and diligently pursuing requirements for the annual license.
(g) The department shall cancel a provisional license upon issuance of an annual license, denial of an annual license, abandonment of an application for licensure, or withdrawal of an application for licensure.
(h) Except as specified in this section, the provisions of this division shall apply to a provisional license in the same manner as to an annual license.
(i) Without limiting any other statutory exemption or categorical exemption, Division 13 (commencing with Section 21000) of the Public Resources Code does not apply to the issuance of a license pursuant to this section by the department, except as otherwise provided in this section.
(j) Refusal by the department to issue a license pursuant to this section or revocation or suspension by the department of a license issued pursuant to this section shall not entitle the applicant or licensee to a hearing or an appeal of the decision. Chapter 2 (commencing with Section 480) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division and Sections 26031 and 26058 do not apply to licenses issued pursuant to this section.
(k) (1) On or before January 1, 2030, the department shall report to the appropriate committees of the Legislature on the number of provisional licenses that have been granted under this section, the number of provisional licenses that have been canceled for each of the circumstances provided in subdivision (g), and the number of provisional licenses granted under this section that remain active at the time of the report.
(2) The requirement for submitting a report imposed under this subdivision is inoperative on January 1, 2034, pursuant to Section 10231.5 of the Government Code.
(3) A report to be submitted pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.
(Added by Stats. 2023, Ch. 593, Sec. 2. (SB 51) Effective January 1, 2024.)