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Why would your California cannabis license application be denied?

On Behalf of | Sep 19, 2022 | marijuana law

You are ready to jump into the multi-million dollar goldmine that is the California cannabis industry. You worked out a plan and secured the necessary capital for your investment. You’ve submitted your application too.

Then you receive the bad news: your trading license is denied. This can be a huge setback, to say the least. However, you should never give up. You can always resubmit your license application and begin your dream business. To do so, however, you need to understand why your original application was denied in the first place.

Here are two questions that can help you understand why California’s Bureau of Cannabis Control can deny your license application.

Did you withhold information regarding previous convictions?

While applying for your business license, the Bureau of Cannabis Control will require you to disclose information regarding any previous convictions. These include the offense that lead to your conviction, date of sentencing, punishment and whether you were put on probation or parole. Most important, you will be required to certify that the information you have provided is true to the best of your knowledge. If you do not provide truthful information regarding your conviction, your application for a Cannabis license will be denied.

Did fail to comply with California regulations?

Compliance and regulation requirements vary depending on the cannabis license you are applying for. That said, you will be required to meet the following compliance requirements:

  • Advertising and marketing compliance
  • Corporate compliance
  • Property lease compliance
  • Consumer protection

Additionally, you will be required to verify your customers’ ages before selling marijuana products to them. Failing to comply with this and the aforementioned requirements will lead to your license’s denial.

If your California cannabis license is denied or withdrawn, do not lose hope. Knowing your legal options can help you safeguard your rights while applying for your trading license or appealing a denial.