Summer is usually the slow season for legislation and rulemaking. This summer is different as demonstrated by the following developments from the Governor’s desk and from the Department of Cannabis Control (DCC). Governor Newsom’s Budget Bill Cultivation tax ends Effective July 1, 2022, the State of California indefinitely suspended the cultivation tax. Excise tax changes In 2023, retailers will be…
Non-fungible tokens have gotten a lot of media attention over the last year. Some of it has come from record prices for certain digital items like the Bored Ape Yacht Club NFTs and some of it due to hacks and outright theft. In keeping with the times, the cannabis industry has begun exploring NFTs as a way to directly engage…
The Department of Cannabis Control (DCC) continues to take steps in simplifying California’s robust set of cannabis regulations. On March 4, 2022, the DCC issued proposed rules as well as an explanation called the Initial Statement of Reasons. In adopting these new rules the DCC’s goal is to further “consolidate, clarify, and make consistent” licensing and enforcement regulations across all…
Industry insiders have known for some time that most cannabis businesses struggle with cash flow problems. This is caused by many factors such as federal illegality, high taxes and fees, including Section 280E of the tax code, a dearth of financing options, and burdensome and inefficient licensing and regulatory obligations. Now it appears that a significant proportion of the licensed…
In the midst of a global pandemic and the health crisis that ensued 2021 was a notable year for the cannabis industry. While the overall trends were positive there were some disturbing developments in the biggest single state market-California. National Congress Tries and Fails to Enact Meaningful Legislation Hope emerged in Congress with the introduction of 69 bills or resolutions…
Almost ten years ago, Colorado and Washington became the first two states to legalize recreational marijuana. In that time, the cannabis industry has exploded throughout the United States and worldwide. Legal marijuana sales are expected to reach $22 billion nationwide by next year, and globally sales are forecasted to reach nearly $73.6 billion. While many investors may be eyeing the…
The cannabis industry has traditionally relied on handshake agreements in favor of written agreements. The reason for this is that the advice from criminal defense attorneys, prior to legalization, was to avoid paperwork which could assist law enforcement in prosecutions. Times have changed with a majority of state allowing some form of cannabis and every third state permitting recreational sales…
On April 19, 2021, the U.S. Postal Service released guidance for the e-cigarette and vaping industry that offers a glimpse of some of the current and future logistical challenges. The release is titled “Treatment of E-Cigarettes in the Mail.” While the title mentions e-cigarettes these concepts and future rules will apply much more broadly to include: CBD and hemp products…
On March 29, 2021, the U.S. Tax Court issued a ruling in favor of the IRS that should serve as a potent reminder of the importance of record-keeping for the cannabis industry. The case is Purple Heart Patient Ctr. v. Comm’r. Background Purple Heart was a licensed medical cannabis dispensary operating in Oakland, California. Keith Stephenson was its sole director. …
The Cannabis Industry and its Intellectual Property, a 2020 Legal Review and Update of Relevant Statues and Cases: What Rights for Protecting Cannabis Innovations and Branding? To succeed in the post-COVID-19 new economy, technology companies must be able to raise capital, attract management talent, and protect their brands and intellectual property assets. Early protection of intellectual property is a critical…