California marijuana lab sues state to recover suspended license

A prominent California marijuana testing lab is suing state regulators in a bid to get its suspended license reinstated.In a petition filed April 18 in Sacramento County Superior Court, Long Beach-based BelCosta Labs alleges the state Department of Cannabis Control harmed its business by revoking its license without any formal hearing and without any means for the lab to appeal or contest the process.

ADVERTISEMENT “As a result of the suspension without due process, BelCosta’s multi-million-dollar business is now shuttered and in danger of being closed forever,” according to the petition.A spokesperson for the Department of Cannabis Control (DCC) said the agency would have no comment on the litigation.

The DCC has yet to respond to the petition in court, according to records.The DCC suspended BelCosta’s state license to test cannabis on April 10 for activity the agency claimed “poses harm to public health, safety, or welfare.” The suspension came only 20 days before BelCosta’s provisional license was set to expire on April 30.

‘Costing $40,000 a day of lost money’ Until the suspension notice hit, BelCosta CEO Myron Ronay told MJBizDaily on Thursday, the DCC had taken no action on a renewal application the lab filed in November.Ronay believes the DCC “purposefully” waited until the weeks before the license was due to expire – when the lab was most vulnerable – to suspend BelCosta’s permit.

“This is costing us $40,000 a day of lost money,” he said. ADVERTISEMENT “They took everything away from us overnight, with no due process, and with only 20 days to fight.” Like many other state licensees, BelCosta had been operating under a provisional permit.

With the exception of some social equity license holders, provisional permits are being phased out by the end of this year.According to the DCC’s April 10 suspension notice, BelCosta a...