California marijuana business lawyers

August 4, 2023

Exploring Cannabis Licensing Opportunities in Lancaster, CA

As the cannabis industry continues to grow and evolve, many cities across California are opening their doors to cannabis businesses. One such city is Lancaster, located in the northernmost part of Los Angeles County. The city has established a regulatory framework for cannabis businesses, providing a unique opportunity for entrepreneurs and investors interested in this burgeoning industry.

Cannabis Licensing in Lancaster, CA

In Lancaster, the city government has established a comprehensive process for obtaining a cannabis business license. This process is designed to ensure that all cannabis businesses operate in compliance with local and state laws, and contribute positively to the community.

July 28, 2023

More California Cannabis Employment Protections Likely On the Way

By Cannabis Law Group

Good news for California employees who also happen to be cannabis enthusiasts: A bill that would bar companies from asking job candidates about previous marijuana use has already passed the state senate and has sailed through its second California Assembly committee. The bill would expand existing worker protections that were passed last year prohibiting employers from discriminating against employees who are shown (either by drug test, admission, or some other means) to have used marijuana off-the-clock. (There are some exceptions, such as workers in building and construction trades or those that require federal background checks or a certain level of security clearance.) California cannabis employment lawyer

Our Los Angeles cannabis business lawyers also practice employment law, so this is doubly good news.

After Senate Bill 700 cleared the state senate, it passed the Labor and Employment Committee, and then also the Judiciary Committee by a margin of 8-2. Now, it goes to the Appropriations Committee. If it passes there, it can advance to the floor. If the Assembly approves the measure, it will then be sent to the governor’s office for consideration. If it does manage to pass, its effective date would be Jan. 1, 2024.

But why was such a bill even necessary? Continue reading

July 20, 2023

The Struggle of Opening Cannabis Retail Shops in California: A Closer Look

By Cannabis Law Group

In the ever-evolving landscape of the cannabis industry, California presents a unique challenge. Despite being one of the first states to legalize recreational marijuana, the Golden State’s cannabis business environment remains one of the toughest in the nation. Over the past three years, industry advocates have placed much of their hopes on repealing city-level bans on cannabis commerce. However, despite numerous victorious pro-marijuana ballot measures and ordinances, progress has been slow.

Since 2020, at least 50 California cities have moved to allow marijuana retail shops, according to a tally by Hirsh Jain at Ananda Strategy. However, the vast majority of these shops haven’t yet opened for business due to local and state red tape. Jain calculated that in just 15 specific localities – including Fresno, Costa Mesa, and Santa Barbara County – there should be 129 legal dispensaries operating by now. However, only 18 have managed to open their doors.

The numbers paint a stark picture:

July 20, 2023

California CBD & Hemp Advertising Now Permitted on Meta Apps Like Facebook & Instagram

By Cannabis Law Group

Opportunities to advertise California CBD, hemp, and cannabis have expanded significantly this year. Los Angeles marijuana businesses interested in tapping into these new marketing opportunities may find success in reaching wider audiences – but they still must be cautious in their approach. Smart sellers will run their ads by their cannabis business lawyer for review before publishing to ensure they aren’t running afoul of the patchwork of rules and regulations surrounding these ads. CBD social media advertisements

Earlier this year, Twitter became the first social media company to allow cannabis companies to market their brands/products to customers in the U.S. Prior to that, the company had allowed advertising for hemp-derived CBD products – and only topical ones at that.

Now, Meta, the parent company of Instagram and Facebook, as well as new social networking platform Threads, announced it will allow cannabis advertising – but only for non-ingestible CBD products. Restrictions on hemp advertisements on these platforms are also easing. In a written statement announcing the new approach, the company said so long as the CBD products contain no more than 0.3 percent THC per the federal standard, it can be advertised – subject to certain rules.

July 14, 2023

California Cannabis Companies Risk License Loss After Joining Fake Labor Union

By Cannabis Law Group

California cannabis business licenses are on the line – at least a dozen of them – after an investigation by state’s Agricultural Labor Relations Board (ALRB) decided the labor union they signed with isn’t a “bona fide” labor union. California cannabis labor union lawyer

As our Los Angeles cannabis business lawyers can explain, when the state rolled out regulations for cannabis license requirements, one of those was the mandate to sign a labor peace agreement with a a bona fide labor union.

For those who may not be familiar with labor peace agreements, they are contractual agreements between employers and labor unions. The union agrees it won’t picket, stop work, boycott, or interfere with employer operations, and in exchange, the employer promises not to try to interfere with the union’s ability to organize the workers. The purpose is to lay the foundation of a relationship of collaboration between workers and their employers, with the ultimate goal of boosting stability, safety, productivity, and company longevity. It can also help lower the potential for employee abuse and/or exploitation – which was a major concern of state regulators when they were drafting cannabis company rules.

So what happened here?

According to the ALRB panel findings, a number of California marijuana businesses signed off with an organization dubbed the Professional Technical Union Local 33, or ProTech for short. Problem was it appears to have been a “labor union” in name only. It had few members, made no intent to organize workers, and failed to respond to basic inquiries from the ALRB about its membership and organizational structure.

This is part of a pattern we’ve seen crop up in other regions of the country as well. But why would these companies take the risk of losing their license by signing off with a sketchy labor union? Regulators suspect the motivation for these companies was to sidestep worker protection laws and lower labor costs by signing off with a “labor union” that wasn’t actually a labor union. Continue reading

July 13, 2023

A Deep Dive into California’s Assembly Bill 128: The Future of Cannabis Event Licensing

By Cannabis Law Group

In a landmark move for the cannabis industry in California, Democratic Governor Gavin Newsom has signed Assembly Bill 128 into law. This pivotal legislation grants state regulators the authority to license Cannabis Event Organizers, marking a significant shift in the state’s burgeoning cannabis market.

Under the new law, Cannabis Event Organizers are defined as “a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction.” This means that, for the first time, cannabis can be legally sold and consumed at a wide range of public events, provided the organizer has obtained the necessary license.

One of the key aspects of Assembly Bill 128 is its approach to licensing. The bill exempts owners who have previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority. This means that if an owner has already undergone the licensing process for a different type of cannabis business, they will not need to submit new fingerprints for a cannabis event organizer license.

July 12, 2023

San Jose’s Cannabis Tax Revenue Dips: A Call for Regulatory Revisions and Market Expansion

By Cannabis Law Group

San Jose, a city known for its thriving cannabis industry, is facing a significant drop in cannabis tax revenue this year. The decline, projected to be in the millions, is attributed to the growing competition from the black market and cannabis delivery services. With a predicted $19 million budget shortfall for next year, boosting tax revenue from the cannabis sector remains crucial.

The city’s budget surplus currently stands at $35 million. However, the decline in cannabis tax revenue is a significant concern. In response, the San Jose City Council has shown interest in easing the regulatory burden on cannabis businesses. Recent moves include loosening cannabis business licensing laws governing where dispensaries can establish themselves and reevaluating penalties placed on legal businesses.

Illegal sellers appear to be capitalizing on the market, often operating as seemingly legitimate delivery services, without generating any tax revenue for the city. Sean Kali-rai, a lobbyist and founder of the Silicon Valley Cannabis Alliance, expressed his concern over the growing prevalence of unauthorized dealers. He stressed the importance of the city’s Division of Cannabis Regulation in overseeing and regulating the cannabis market.

July 12, 2023

Laguna Woods: A Senior City in Orange County May Welcome Cannabis Businesses

By Cannabis Law Group

In a surprising turn of events, Laguna Woods, a city in Orange County known for its high percentage of senior citizens, is considering welcoming local cannabis shops. This move is a testament to the growing recognition of the medicinal and recreational benefits of marijuana among all age groups, including seniors.

Longtime Cannabis attorney Damian Nassiri explained to us that Laguna Woods is home to the highest percentage of senior citizens in Orange County. The city is now in discussions about allowing local cannabis shops to provide residents with easier access to medicinal and recreational marijuana. The city council is holding a public hearing on July 19 to gather more input from residents and city staff about potential regulations for these businesses.

At a preliminary discussion on June 21, council members discussed the potential look and feel of cannabis shops in the city. Most residents who publicly commented were in support of allowing cannabis storefronts. In November 2022, Laguna Woods residents passed Measure T with 61.03% of the vote, approving a tax rate on cannabis businesses. The council later set this tax rate at 10%, the maximum amount allowed under state law.

July 12, 2023

Understanding California Senate Bill 512: A Beacon of Hope for the Over-Taxed Cannabis Industry

By Cannabis Law Group

In the ever-evolving landscape of cannabis laws and regulations, the Cannabis Law Group, led by Damian Nassiri, stands as a beacon of guidance for businesses in Southern California and across the United States. With over 14 years of experience in the industry, Nassiri and his team primarily assist clients seeking cannabis business licenses, including cannabis retail storefront, delivery, cultivation, manufacturing, and distribution licenses. Today, they shed light on a significant development in California’s cannabis industry: Senate Bill 512 (SB 512).

SB 512, designed to end the double taxation of cannabis in California, is a beacon of hope for an industry struggling under the weight of over-taxation. Currently, under the Adult Use of Marijuana Act, the cannabis excise tax is set at 15% of gross receipts from licensed retail cannabis sales. Many local governments impose additional taxes on cannabis, ranging as high as 10% in some jurisdictions. Retailers are required to include these excise taxes in the definition of gross receipts when charging additional sales taxes of 7.25 – 10.5%. This double or even triple taxation has placed an undue burden on the cannabis industry.

SB 512 aims to rectify this situation by ending this excessive taxation, delivering much-needed relief to an industry that is currently unfairly overtaxed. The bill’s passage would significantly impact the financial health of cannabis businesses, potentially leading to increased profitability and growth.

July 12, 2023

Navigating the Impact of IRS Code 280E on Legal Cannabis Businesses

By Cannabis Law Group

Introduction:

In the ever-evolving landscape of the legal cannabis industry, businesses face a unique challenge when it comes to taxes. The Internal Revenue Service (IRS) Code 280E has significant implications for cannabis businesses, placing them in a distinctive position compared to other sectors. In this blog post, we delve into the effects of IRS Code 280E on legal cannabis businesses and explore the challenges and strategies for navigating this tax provision.

Understanding IRS Code 280E: