LEX CANNA

Proposed Regulations for the Appellations of Origin for Cannabis

Background of Establishment of Appellations for Cannabis in California The California Department of Food and Agriculture (“CDFA”) describes an appellation of origin as a protected designation that identifies the geographical origin of cannabis and how that cannabis was produced.  Business and Professions Code Section 26063(3) requires that by January 1, 2021, CDFA develop a process […]

Industrial Hemp Update: Sonoma County

Since the passage of the 2018 Farm Bill, there have been significant changes to the federal, state, and local regulation of industrial hemp. In October of 2019, the USDA issued an “Interim Federal Rule” which requires states that want to assume regulatory authority over hemp to submit a plan to the USDA for its approval. […]

New California Cannabis Regulations Create Uncertainty For Corporate Owners

On October 19, 2018 California’s three state cannabis licensing authorities published proposed changes to the forthcoming state rules governing the cannabis industry.  While there are numerous revisions that will impact operators, one provision of the changes stands out for investors in the cannabis space. Previous iterations of the cannabis regulations required limited disclosure of merely […]

Can CA Hold Weedmaps Accountable for Unlicensed Cannabis Advertisements?

Have you heard of the “Yelp” of cannabis? If not, here it is: Weedmaps. Weedmaps is a consumer-facing digital platform that allows businesses—including those without a license to conduct cannabis business—to advertise regarding their products, services and location. The Controversy Weedmaps enables licensed and unlicensed cannabis retailers to advertise. When businesses with cannabis licenses advertise, […]

Breathing Room? Feds May Not Target Cannabis for Prosecution, After All

Back in January, when U.S. Attorney General Jeff Sessions announced that he was rescinding the Obama-era “Cole Memo,” much speculation ensued about the practical effects, if any, of the move. To some, it suggested that Mr. Sessions was launching “a new war on marijuana legalization.” Others saw opportunity because it might force Congress to take […]

Federal Enforcement Update: Can Again Kicked Down the Road

As we explained in our previous post, the Rohrabacher-Blumenauer Amendment protects against federal enforcement of the Controlled Substances Act with respect to medical cannabis in states that have legalized it. The Amendment has been included in spending bills since fiscal year 2015. That means every Congressional debate over a new spending bill has been a […]

Federal Enforcement: Where Do We Stand?

While turmoil swirls in Washington, and with California’s state-legal cannabis industry just getting started, here is a check-in on the prospect of enforcement of the federal laws against cannabis. Cole Memo In January, Attorney General Jeff Sessions announced that he was rescinding the “Cole Memorandum.” That memorandum provided guidance to federal prosecutors with respect to […]

CDTFA CANNABIS TAX ANNOUNCEMENTS

The California Department of Tax and Fee Administration (“CDTFA”) recently released new tax guidance concerning cannabis. In one release, CDTFA provided an explanation concerning the excise tax and its application to products that were in retailers’ inventories as of January 1, 2018. Retailers must collect the 15% excise tax from their customers and pay the […]

Emergency Regulation Addresses Tax Puzzle

As California scrambled to get rules in place for its new state-legal cannabis market, one welcome, if imperfect, feature of has been flexibility with respect to pre-existing inventory. For example, Section 5029 of the Bureau of Cannabis Control’s emergency regulations allows businesses to sell goods in inventory that do not comply with labeling requirements under […]

Beyond Licensing: Prop 65 Liability Risks for California Cannabis Companies

California has finally ushered in the era of state-licensed cannabis, and cannabis is now a commercial product much like any other (well, at least in the state’s eyes). Forward-thinking companies will not rest on their laurels after obtaining their state licenses, however. As with any product sold to consumers, selling cannabis carries various liability risks. […]

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