That extension, which faces opposition for delaying promised environmental safeguards, was not included in the state budget bill approved Monday and is still being negotiated with lawmakers.
He said delays in cities adopting rules, their limited staffing and lack of resources by cannabis firms mean some face two to four years to get through the licensing process.
In 2019, industry officials estimated there were nearly three times as many unlicensed businesses as ones with state permits.
The bill approved by the Legislature on Monday includes $100 million and identifies 17 cities and counties earmarked to receive grants, including Los Angeles, which would get the largest grant.
Originally, pot businesses were supposed to transfer from temporary licenses to regular annual licenses by 2019, but many businesses were unable to comply in time, so the state allowed provisional licenses until Jan.
Each cannabis grower must provide evidence that they met the requirements for environmental review.
The $100 million would go to local agencies with the most provisional licenses for growing, manufacturing, distribution, testing and retail operations.
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