California marijuana legalization

July 12, 2023

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

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.

October 5, 2021

Medical Cannabis Now Legal in California Health Care Facilities

By Cannabis Law Group

California hospital facilities will be allowed to use medical cannabis for terminally ill patients. Gov. Gavin Newsom signed into law the Compassionate Access to Medical Cannabis Act, or Ryan’s Law – remarkable for the fact that he vetoed a similar measure in 2019 due to conflict with federal law. At the time, Newsom said he supported the measure but couldn’t sign into law because of the conflict with federal and state law. Now, he says federal officials have indicated that they aren’t taking a strong stance against the use of medical cannabis in hospitals. medical marijuana attorney

Cannabis remains illegal at the federal level, continuing to be one of the greatest sticking points for California marijuana companies. It is one our Los Angeles cannabis business attorneys expect to see changed sometime in the next few years.

As it stands, 36 states plus the District of Columbia have legalized marijuana for medical and recreational uses. Industry researchers report that last year, sales of legal cannabis climbed 45 percent. It’s estimated they’ll reach $41 billion in the next five years. Yet those who might most benefit from its use in the twilight of their lives have been denied due to the federal law that criminalizes marijuana and casts it in the same category of methamphetamine and heroin – highly addictive narcotics with no recognized medical purpose.

Clearly, that definition is outdated. Medical cannabis has been legal in California since 1996. Recreational use was approved by voters in 2016. Now, Senate Bill 311 is one step closer to turning the tide entirely. Continue reading

September 8, 2021

California Supreme Court: Cannabis Law Not Applicable to Prison Inmates

By Cannabis Law Group

Inmates in prison are not allowed to possess recreational marijuana while incarcerated, according to a new ruling by the California Supreme Court. The court overturned a lower court’s decision that held prisoners were allowed to have the drug, so long as they didn’t use it. Los Angeles marijuana lawyer

The case, California v. Raybon, involves five inmates in a California state prison who were convicted on felony charges after being found with marijuana in their cells. The men appealed to the 3rd District Court of Appeal in Sacramento, which overturned their convictions after determining that while they could not legally eat or smoke pot in prison, possession of marijuana is no longer a criminal offense. As our Los Angeles marijuana defense lawyers can explain, this ruling conflicted with those of other appellate courts.

The state supreme court weighed in after a challenge from the state attorney general. In a split 5-2 ruling, the high court held that Prop 64, which legalized recreational marijuana in California, was not applicable to prison inmates. The majority opinion held that there as nothing in the ballot materials for the law that indicated voters had considered or were even aware of how this might impact possession of the drug in prison. The court stated, “it seems implausible that the voters intended to essentially decriminalize marijuana in prison.”

Had the public intended to alter the laws and policies regarding possession of cannabis in prison settings, they would have stated so explicitly, the court ruled. Further, it would make no sense that voters would wish to continue to criminalize the consumption of cannabis in prison, yet allow inmates to legally posses it. Continue reading

August 4, 2021

What Are the Odds U.S. Senate Will Legalize Pot at the Federal Level?

By Cannabis Law Group

Our Southern California cannabis lawyers have been carefully eyeing the legal developments happening at the federal level, with Senate Majority Leader Charles Schumer of New York recently releasing draft legislation that would legalize marijuana in the U.S. Los Angeles marijuana lawyer

It’s called the Cannabis Administration and Opportunity Act. It’s similar to a bill passed by the House in December. The House’s approval of such a measure isn’t surprising, given its political makeup. The Senate, however, is much more conservative and a different story. How good of a chance does a measure like this actually have of becoming reality?

A poll conducted last year by the Pew Research Center reveals 6 in 10 Americans favor legalizing pot for both medicinal and recreational use. However, the majority party in the Senate has a lot on its plate, with presidential priorities being immigration, policing and infrastructure. Cannabis isn’t on that list, but that doesn’t necessarily mean it won’t have forward momentum. Continue reading

February 9, 2020

Where Does California’s $635M in Marijuana Tax Money Go?

By Cannabis Law Group

marijuana banking The state of California has now permitted the legal use of marijuana for two years. And tax dollars collected from the cannabis industry are already showing great impact across a variety of sectors.

Since its passing in 2016, Prop 64 has earmarked its entire cannabis industry tax revenue, minus regulatory costs, to supporting public health, repairing the environment, and bettering public safety.

New parks, healthier children, broader educational opportunities, forest clean ups, drugged drivers removed from the roads, and criminal records cleared are just some of the areas already seeing big improvements thanks to Prop 64 tax revenue contributions.

And this is just the beginning. In mid January this year, Gov. Gavin Newsom proclaimed another $332.8 million in cannabis tax revenue would be allocated to social services for the 2020-2021 fiscal year.

February 3, 2020

Vape Disease Cases in California All Linked to Underground Goods

By Cannabis Law Group

Los Angeles marijuana lawyer Los Angeles officials announced that cannabis vape cartridges seized from unlicensed storefronts late last month were tainted with potentially hazardous additives. These include an agent that is known to thicken substances, and is also blamed for causing the vaping lung illness sweeping the nation.

In December, California investigators also raided unregulated storefronts throughout Los Angeles and confiscated illegal vape products. According to state testing results, many of those products showed as far less potent than labeling suggested.

In some cases, the oil cartridges THC contents showed to be only a portion of that claimed and were diluted more than one-third by undisclosed but likely dangerous additives.

Los Angeles officials tested a sample comprising more than 10,000 randomly selected illegal vape pens confiscated in those raids. Results showed three in four vapes contained the thickening agent vitamin E acetate, which federal regulators blame for the majority of lung illnesses linked to the national vaping health crisis.

November 10, 2019

Cannabis Now a Step Closer to Federal Legalization

By Cannabis Law Group

An all-encompassing cannabis reform bill inches the nation’s marijuana industry ever closer to federal legalization, as the U.S. House Judiciary Committee voted 24-10 in favor of the bill carried by California-Dem. Kamala Harris in the Senate.

The MORE Act
Should the bill become law, the 2019 Marijuana Opportunity Reinvestment and Expungement Act (MORE Act) has the potential to extend vast business opportunities for licensed cannabis outfits, especially in states like California where legal operations have already had time to become well established.

However, the bill is not expect to be reviewed by the full House until at least 2020. And in the event that the full House does pass the measure, the current Republican-controlled senate will likely be a difficult obstacle for the Democrat lead bill to overcome prior to next year’s federal election. Marijuana policy
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August 5, 2019

Growing Pains for California’s Weed Tracking System

By Cannabis Law Group

In January, the state of California kicked off an online rollout of its marijuana inventory tracking system. At a glance, marijuana businesses across the Golden State appear to be successfully reporting product inventory each day, via the California Cannabis Track-and-Trace (CCTT) system. But not without some growing pains.

To start, the idea of tracking marijuana traveling throughout the supply chain sounds simple enough. In theory, all cannabis products would be given unique identification numbers, noting from which ‘batch’ or ‘lot’ they were born. Products would then be sent to labs for testing. Next, approved products would be passed from producer to distributor, and finally to retailers for sale. At each step, the state should be able to track each piece of marijuana as it moves through the chain, making sure nothing is being redirected out of state, and ensuring everybody is paying their required taxes.

California Cannabis Lawyers

But in practice, a few hiccups quickly come to light. First up, only businesses holding ‘provisional’ or ‘annual’ licenses are required to subscribe to the track-and-trace system. And until last month, there were more than 600 marijuana businesses operating on ‘temporary licenses,’ who would not have had to track-and-trace. This means, there was no way regulators could comprehensively account for every legal product moving about the state.

July 25, 2019

Los Angeles Marijuana Industry at Boiling Point

By Cannabis Law Group

cannabis defense lawyers Ever since cannabis was legalized in California in January 2018, a flood of marijuana businesses have opened, hoping to take their share of the pot market. But it’s no secret that many industry stakeholders are unhappy with the current state of affairs.

Today there are 182 licensed marijuana dispensaries operating throughout Los Angeles, and many of those business have paid well into the tens of thousands of dollars to operate legally. First by registering their companies and covering licensing fees, then paying city taxes and continually meeting strict safety standards imposed by the state.

Meanwhile, there are countless other outfits operating slightly more under the radar. They are able to skip paying licensing fees and, as predominantly cash run businesses, also avoid paying taxes. To the frustration of legal business owners, rouge pot shops attract a slew of customers with undercut pot prices, prices that legal outfits have a hard time matching given their higher operating costs.

While regulation of cannabis use and sale continues to undergo assessment and tweaking in the state of California, many licensed cannabis business owners have reached boiling point. The biggest reason, illegal pot shops continuing to operate comfortably, with little pressure from state authorities requiring them to toe the line.
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July 22, 2019

Marijuana Legislation Wins in Congress, Now Onto the Senate

By Cannabis Law Group

marijuana business Marijuana supporters in California rejoiced late last month as legislation passed by the U.S. House of Representatives could afford the industry more freedom to grow. Currently, the recreational use and sale of marijuana is legal in California, along with 10 other states, and Washington D.C. But federal law continues to classify cannabis as a Schedule 1 narcotic. While it is yet to happen, this makes folks in the cannabis industry weary, as the door remains open for the federal government to prosecute against cannabis related businesses, even in states that have legalized marijuana.

The Blumenauer-McClintock Amendment
The lauded legislation, known as the Blumenauer-McClintock amendment, would prohibit the Department of Justice from using federal funds to interfere with California state laws, or the laws in any state or district, legally permitting the regulated adult-use of cannabis.

Supporters for marijuana law reform are praising the legislation. Justin Strekal, Political Director for pro-marijuana organization, NORML, called it “the most significant vote on marijuana reform policy that the House of Representatives has ever taken.” That’s because the cannabis industry would certainly welcome extended protections within states that already permit the legal use and sale of marijuana.
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