Coronavirus Update: Cannabis Included in California’s List of “Essential Critical Infrastructure Workers”

By Lauren Mendelsohn and Omar Figueroa

March 21, 2020

On the evening of March 20, 2020, after requests from cannabis industry advocates (including our office), California Governor Gavin Newsom issued a document listing what the State Public Health Officer has designated as “Essential Critical Infrastructure Workers” who can continue operating during the state directive to stay home except for essential needs in response to the ongoing coronavirus (COVID-19) pandemic.  To the relief of many struggling cannabis operators, California recognized the cannabis industry as a component of the essential critical infrastructure, which means that licensed cannabis businesses can continue operations.

We previously discussed Governor Newsom’s stay at home order here. The State also updated its COVID-19 resource website to include FAQs about the types of businesses exempt from the order.

Specifically, the document sets forth the types of workers who are considered “essential workforce” and thus need not stay at home. Cannabis businesses are referenced twice: as a component of the essential workforce for the Healthcare / Public Health sector (in the same category as “workers who provide COVID-19 testing”) as well as a component of the essential workforce for the Food and Agriculture sector.  Below are relevant excerpts from the document:

Nicole Elliott, Senior Advisor on Cannabis to Governor Gavin Newsom, stated (in response to our letter) that cannabis should be considered essential:

We asked Ms. Elliott to confirm that the entire cannabis supply chain (and not simply retail) is considered essential. From the context of Ms. Elliott’s e-mail (as well as the fact that she responded to CalCannabis Cultivation Licensing Director Richard Parrott and to the California Department of Public Health’s Manufactured Cannabis Safety Branch in addition to Bureau of Cannabis Control Chief Lori Ajax) it can be inferred that when she stated that cannabis should be considered essential, she meant that the entire cannabis supply chain should be considered essential. For further context, keep in mind that Ms. Elliott’s email was in response to our letter, which stated in part:

On March 21, 2020, Ms. Elliott confirmed to us via email that the entire cannabis supply is indeed considered essential.

In addition, the Bureau of Cannabis Control (BCC) issued a notice confirming that cannabis is essential and that cannabis licensees may continue to operate as long as they comply with local rules and regulations. The Department of Food & Agriculture (CDFA) issued a notice as well.  The Manufactured Cannabis Safety Branch (MCSB) also just published an entire coronavirus-specific webpage with various resources including a flyer about Cannabis Product Safety During COVID-19.

This is a victory for members of California’s cannabis industry, who have been anxiously waiting over the past week to see how their businesses would be impacted as individual counties (such as Sonoma County, where our office is located) have imposed shelter-in-place orders requiring residents to stay at home unless they work for a business deemed part of the critical infrastructure. Previously criminalized, this sector is now considered “essential” to society.

Licensed cannabis businesses and other businesses exempt from the stay-at-home order must still follow CDC guidance and Cal/OSHA guidance for proper safety, hygiene and sanitation in the workplace.

Stay tuned to our blog for further updates about the impact of coronavirus on the cannabis industry.

 

This information is provided as a public educational service and is not intended as legal advice. For specific questions about how the coronavirus outbreak impacts cannabis and hemp businesses in California, please contact the Law Offices of Omar Figueroa at 707-829-0215 or info@omarfigueroa.com to schedule a confidential legal consultation.