California cannabis attorney

July 20, 2023

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

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 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

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.

April 29, 2023

California Remains in Minority of States With No THC Legal Limits for Drivers

By Cannabis Law Group

Recreational marijuana has been legal for adults in California for the past 7 years – but driving under the influence of marijuana (or any mind-altering substance) has always been strictly prohibited. But despite all the legislative and regulatory developments with respect to marijuana law, the state has yet to establish any bright line rule on legal THC limits for drivers. Los Angeles marijuana DUI defense

Of course, as our Los Angeles cannabis DUI lawyers can explain, a big part of the reason for that is because it’s none so simple to establish marijuana intoxication simply based on the levels of psychoactive THC in one’s body. Unlike alcohol, which cycles through the body very quickly, THC remains traceable for weeks after consumption. A 0.08 percent blood-alcohol level would likely indicate recent excess alcohol consumption. But the same isn’t true for THC. Person A might have higher levels of THC in their bloodstream than Person B, but still be less intoxicated. The level of THC in one’s system simply doesn’t tell the whole story, particularly if one is a regular cannabis consumer.

Despite this, 18 other states have imposed some sort of limit on the amount of THC drivers can have in their bloodstream before they’re considered “under the influence” of cannabis. (THC, of course, is short for tetrahydrocannabinol, the element contained in marijuana that creates the “high.”)

There are some safe driving advocates trying to change that. One of those is the family of a 25-year-old who died tragically in a California car accident in 2020 – a passenger in a truck driven by her boyfriend. He would later say he saw an animal, jerked the steering wheel, and crashed into another vehicle – totaling his truck and killing his girlfriend instantly. The woman’s father believes the boyfriend was stoned, and he’d even spoken to his daughter about not getting into the car with her boyfriend when he’d been consuming cannabis. Her mother said she’d spoken directly to the boyfriend about what they recognized as a serious safety issue.

The boyfriend, according to a local news outlet, reportedly conceded that he’d consumed marijuana the day of the crash – but he was a habitual user of cannabis and his consumption had been earlier in the day. He insisted he was not impaired. Continue reading

February 25, 2022

Understanding New California Cannabis Trade Sample and Medical Marijuana Donation Laws

By Cannabis Law Group

Laws pertaining to cannabis trade samples and medical marijuana donations have been recently updated in California. Marijuana businesses would be wise to review this changes with their Los Angeles cannabis lawyer to ensure their company processes and practices are aligned with the letter and intent of these laws. Los Angeles cannabis business lawyer

Let’s start with trade samples. These are samples of cannabis plants or products that are sent to cannabis licensees by producers, processors, wholesalers, and holders of hemp certificates to create brand and product awareness. It’s considered a solid means to generate more business. Trade samples allow products to be sampled, tasted, and smelled by licensed business buyers. An example would be marijuana producers who sell immature plants to other producers. Prospective buyers may want to know what kind of strain those immature plants are going to ultimately produce. A trade sample can show them. Similarly, producers could send samples to retailers to convince them to stock their product. Other industries have engaged in this for eons, but there has been some question about how those in the California cannabis industry could not only do it lawfully, but without having to pay the hefty taxes associated with retail sales.

Now, with the passage of AB 141 (a large piece of legislation that went into effect Jan. 1, 2022), cannabis products can be designated as trade samples from one licensee to another for marketing purposes. This will allow them to bypass cannabis taxes they’d otherwise have to pay. Exempted exchanges will include all harvested cannabis that has been or will be designated as a trade sample, as well as all cannabis that is used to manufacture a cannabis product that is/will be designated as a trade sample. Furthermore, the cannabis excise tax won’t apply to product that is designated as trade and simply given to another licensee absent consideration. Continue reading

December 8, 2021

Marijuana Sales Are Legal Everywhere in California… Right? (Not Exactly)

By Cannabis Law Group

California became the first state in the U.S. to approve marijuana for medicinal use back in 1996. It was also among the first to legalize recreational adult use marijuana in 2016. Los Angeles cannabis retail attorney

However, it would be erroneous to assert that marijuana sales are legal everywhere in the state. As our Los Angeles marijuana lawyers can explain, cannabis still remains widely unavailable in some of the largest cities in the Golden State.

Of the state’s 482 cities, only 174 of them allow some type of licensed, cannabis business to operate within their district. In a number of those jurisdictions, the only allowable businesses are those that are not classified as retail locations. That means that a key piece of the supply chain puzzle is missing. Ultimately, this leaves millions of people without immediate access to retail recreational cannabis.

The one exception is delivery. Having a state license from the California Department of Cannabis Control authorizing delivery allows that company to deliver in any jurisdiction in the state – something that has been affirmed in subsequent court rulings challenging this right. However, those companies might still be subject to local jurisdictional requirements. All cannabis company owners and operators should be working with an experienced marijuana business attorney to help ensure their operation rights are protected.

But the benefit of accessible cannabis for all communities goes beyond the shop owners. It benefits the industry as a whole, as well as citizens. Accessible legal cannabis constricts opportunities for those in the black market to gain a foothold.

So what’s the holdup? Continue reading

May 30, 2021

Licensed California Cannabis Shops are Successfully Blocking Sales to Minors, Study Shows

By Cannabis Law Group

Minors getting ahold of marijuana was a major sticking point in the lead up to the passage of Proposition 64, which legalized adult-use California cannabis. It’s also been cited as a reason to block cannabis business billboards on California highways. But as it turns out, licensed marijuana retailers are doing an excellent job keeping the substance out of the hands of youth. Los Angeles cannabis lawyers

You don’t need to take our Los Angeles marijuana business lawyers‘ word for it. This is according to a new study commissioned by the Insurance Institute for Highway Safety. Despite a few isolated incidents of state law violations (i.e., workers giving out free samples of edibles), the analysis revealed workers at cannabis retail locations are committed to following the rules, protecting minors and staying in business.

Study authors say the largest loophole through which minors obtain cannabis in California is through unlicensed vendors. Consider that black market bud sales are three times bigger than the legal market. They don’t have the regulations and taxes to contend with. They sell products that aren’t verified for safety or quality, but they can sell them cheaper – and they don’t always ensure the people to whom they’re selling are of legal age to do so.

The proliferation of the black market in this state has served as a lesson to other states preparing to oversee the unveiling of similar recreational cannabis industries. Continue reading

January 3, 2021

Expectations for California Cannabis Law in 2021

By Cannabis Law Group

Trying to predict the California cannabis market was problematic even prior to an international pandemic that threw everything off course. Part of it is that this is the largest legal marijuana market in the world. Part of it is that it’s so new, being legalized for adult recreational use just three years ago. And part of it is the industry’s ongoing and fierce competition with a huge illegal market – all while the drug is considered illegal and highly addictive by the federal government. marijuana business lawyer

That said, our Los Angeles marijuana business lawyers have been fierce defenders of those involved in cultivating, manufacturing, selling, using, prescribing and advertising marijuana for more than a decade. We have become deft at examining the trends as we advise our clients, many of whom were better off than some other businesses due to their designation by the state as “essential.”

In looking at the year ahead, our marijuana lawyers see a handful of factors that will likely impact the future of the industry and the clients we serve.

March 16, 2020

California Proposes Regulations for Appellations of Origin for Cannabis

By Cannabis Law Group

Los Angeles marijuana tax lawyer Regulations were proposed by the California Department of Food and Agriculture (CDFA) last month, suggesting that appellations of origin are established for cannabis. As such, February 20 marked the beginning of the 45-day period required by Californian law, where the public can submit any comments it may have on the matter. The CDFA has continued to welcome and encourage all interested to submit their thoughts. The deadline to do so is April 6, 2020.

Background
Under Section 26063 of the Business and Professions Code, The Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), requires that the CDFA Cultivation Licensing Division, also known as CalCannabis:

Forms standards that allow licensed cannabis growers to elect a county of origin for their cannabis; and
Establishes a process that licensed cannabis growers can use to establish appellations.

The department has until January 1, 2021 to form the process of appellations of origin. In order to meet this statutory obligation and to fulfill MAUCRSA mandated responsibilities, the department has created what is now know as, the Cannabis Appellations Program (CAP).