Marijuana homogenization is a tricky subject. In fact, it refers to two topics that overlap in ways. The threat of big business’ influence is a topic we’ve discussed at some lengths and will cover more soon. However, this is about the need for a slightly different homogenization, the process which ensures uniformity across a produced product. One does play into the other. Yet, this homogenization affects cannabis in an entirely other manner.
Customers Deserve What They Buy
Homogenization is standard in many grocery products including milk, cheese and fruits. In cannabis, that is not the case just yet. Recent events make the topic worthy of discussion once again though as alarming news about inconsistent marijuana products has continued to come in over the past few months. One blind test of 84 CBD products sold by 31 companies revealed that only about 31% actually contained the amount of CBD listed on its label. Even the top strains in the world are turning up void of cannabinoids.
The industry needs product homogenization. Without it, consumers, the market and its perception could be at stake.
When a customer buys a CBD product, they expect to receive treatment that is in-line with what is described on the label. The same can be said for the top strains in the industry. However, as recent …
In the meantime, property owners still have to plan for the future, whether that means deciding how to use their property, or whom to rent commercial space to and under what terms. Operators and landlords alike are uncertain what to expect: on the one hand, state governments are issuing cannabis licenses freely; on the other, the federal government is telling its prosecutors to pursue any and all of them as they see fit– regardless of any state’s laws. One strategy for approaching all this uncertainty is by building early termination contingencies into the lease. Below are a few of many contingencies that commercial cannabis landlords and tenants alike should consider including as part of a potential …
Yesterday, Vermont Governor Phill Scott signed a bill into law legalizing marijuana. Vermont has become the first state to legalize recreational marijuana through its legislature. Alaska, Colorado, California, Maine, Massachusettes, Nevada, Oregon, Washington, and Washington DC all legalized the recreational use of cannabis through voter initiative. Vermont also becomes the first state to legalize after Jeff Sessions rescinded Obama-era guidance on federal enforcement in states with legal marijuana and issuing his own memo. The new law goes into effect on July 1, 2018.
Vermont’s bill is also unique in that it is noncommercial. It does not create a regulated market (yet) or a tax structure for cannabis sales. The bill simply makes it legal to possess and grow small amounts of marijuana. This is similar to the legal framework regarding recreational cannabis in Washington DC.
The Vermont legislature summarizes the intent of the bill as follows:
It is the intent of the General Assembly to eliminate all penalties for possession of one ounce or less of marijuana and two mature and four immature marijuana plants for a person who is 21 years of age or older while retaining criminal penalties for possession, dispensing, and sale of larger amount of marijuana.
Individuals in Vermont who possess marijuana or marijuana plants in excess of these restrictions
Cannabicyclol, also called CBL, is one of the least known and studied cannabinoids in the cannabis plant. Although it is commonly found in many varieties, in particular those with a higher content of CBC (Cannabichromene), the amount of CBL produced in trichomes is always very low, so it doesn’t usually receive the attention given to other, more plentiful compounds of the plant with a much more noticeable presence, such as THC, CBD or CBN.
CBL or cannabicyclic molecule (Photo: Wiki Commons)
One of the main characteristics of CBL is the absence of psychoactivity in its effect, which is why it is not listed in the Convention of Psychotropic Substances. In fact, CBL shares its formula with many of the other phytocannabinoids produced by cannabis, even with psychoactive compounds, although it differs slightly – as in the other cases – in its structure, in the ordering of the atoms that make up the molecule, meaning that its effects vary enormously. For example, THC or tetrahydrocannabinol (the main psychoactive cannabinoid of cannabis) and CBL differ mainly in the absence of double …
The Beaver State is well on its way to becoming a cannabis powerhouse. With their cannabis industry becoming more and more developed every day, Oregon is a great spot to immerse into marijuana culture and everything that comes with it.
To help you gain a better understanding of the cannabis market in Oregon, we’ve teamed up once again with our friends at BDS Analytics to provide you the latest point of sale data. BDS Analytics is an industry-leader in cannabis data and expertly aggregate information from dispensaries across the state.
Without further ado, let’s get to it!
Marijuana Prices in Oregon: Fall 2017
From January 2015 to October 2017, Oregon’s cannabis dispensaries have generated slightly over $1 billion in sales. 59 percent of these sales came directly from flower/bud, with revenues of $594 million from the category. In 2017, flower’s dominance started to slowly decline as the regulatory environment for cannabis stabilized in Oregon and other product categories enjoyed uninterrupted growth. While flower sales remain dominant in Oregon, flower contributed just 51 percent of sales year-to-date, as growth in other categories including concentrates, edibles and topicals all outpaced flower.
We recently hosted a webinar discussing cannabis disputes and litigation. Over 1,000 people signed up to learn about the different types of litigation that can occur, how to avoid disputes, and, if necessary, how to prevail when litigation is unavoidable. During the presentation, I covered employment litigation and received quite a few questions. Several people were curious about labor peace agreements in particular, which are an important topic for the California cannabis industry. Because we ran short of time during the webinar, however, I will address those agreements here.
California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) requires adult use cannabis and medicinal cannabis licensees with 20 or more employees to provide a statement that the applicant will enter into, or demonstrate that it has already entered into, a labor peace agreement. In other words, once your business reaches a certain size, you will not be able to operate in California without a labor peace agreement. But, what is a labor peace agreement?
In short, a labor peace agreement is an agreement your cannabis business enters into with a union that represents cannabis workers. The agreement includes obligations for both the union and the cannabis employer. This types of agreements are highly specialized.
Even though licensing under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) has launched in California, the process has been relatively anticlimactic. With the “transition period” and temporary licenses in play, we’re basically seeing the same gray market collectives (from retail to cultivation) enter the California cannabis marketplace without much fanfare while other unlicensed gray market collectives stay open and operating. There’s been a lot of confusion around continuing the collective model over the next year, whether (and when) the state will actually start consistently enforcing its regulations, and whether the Sessions Memo means an imminent chilling period for California’s industry as a whole. Some of these issues will only be addressed by the passage of time, but others can be cleared up now (see here, here, and here for our MAUCRSA FAQ posts).
In turn, here are, in my opinion, the top ten legal myths surrounding California legalized cannabis industry:
The current collective model gets to rage on for the next year. Not entirely true, as we have covered elsewhere on this blog. The collective model created by a 2008 state attorney general memo and eventually addressed by SB 420 gets to live on until January 9, 2019 (if you didn’t get it, the Bureau of Cannabis
Opioids are a common type of drug used to treat pain. People who suffer from chronic pain are often prescribed an opioid like oxycodone to help manage their pain levels. The problem with taking an opioid, however, is that they’re highly addictive and users can experience a multitude of side effects.
Opioids are a common type of drug used to treat pain. People who suffer from chronic pain are often prescribed an opioid like oxycodone to help manage their pain levels. The problem with taking an opioid, however, is that they’re highly addictive and users can experience a multitude of side effects.
We recently came across a cannabis cultivation article which we felt we simply had to share with our readers. Unfortunately, it wasn’t the usual kind of pot growing article that sings the praises of the idea and tells you all you need to know about crafting killer cannabis from the ground up. Instead, it came […]
California cannabis businesses are now acquiring temporary permits to enter the new cannabis marketplace made possible under MAURSCA. As part of that process, all cannabis businesses have been introduced to the California Department of Fee and Tax Administration (“CDTFA”), the agency tasked with administering the new cannabis cultivation taxes and sales tax.
The CDTFA administers sales tax exemptions on purchases of certain farm equipment and agriculture products. These exemptions are available to cultivators, processors and manufacturers. California sales tax rates are high – ranging from 7.25% to 10.25% of the sales price. Sales tax savings go directly to the bottom-line and a business could save up to $1,025 on every $10,000 invested in eligible supplies and equipment.
This post provides a quick outline of California sales tax exemptions available to cultivators. A second post will cover licensed processors and manufactures.
Seeds and Plants
The sale of seeds and plants are exempt from sales tax so long as the purchaser uses those seeds and plants to create products sold in the regular course of business. Plants include “cuttings of every variety”. Consequently, a cultivator should be able to purchase clones and plants exempt from sales tax. To document the exemption, a cultivator must give a seller an exemption certificate.
On December 11, 2017, Culver City Council voted to approve an ordinance that allows for the establishment of medicinal and recreational commercial cannabis businesses. Culver City becomes the fourth city in Los Angeles (including West Hollywood, Los Angeles, and Maywood) to implement a framework for regulating both medical and adult-use cannabis.
Since January 1 and the legalization of adult-use cannabis in California, clients have been asking us constantly about licensing their businesses. As we have explained time and again, getting local approval is paramount before getting a state license.
Here is how the rest of Los Angeles County currently looks:
The City of Los Angeles is only accepting Prop M Priority Applications until at least March 4, 2018. The city has stated that applications for the general public probably will not be available until mid-2018.
West Hollywood has been processing applications, but the city is known for having high rents and minimal property space.
Maywood is one of the smallest incorporated cities in Los Angeles County. Although they allow commercial cannabis businesses, there is not a lot of space to establish one.
Culver City expects to have an application process open soon, sometime during the first quarter of 2018. The ordinance allows for the establishment of storefront retail, delivery only retail, manufacturing, distribution, laboratory …
The U.S. cannabis industry employed roughly 165,000 workers as of last summer. By 2020 that number is expected to jump to 250,000 employees, which is more jobs than the expected jobs from manufacturing, utilities or governments sectors. It is no wonder that we have seen a significant uptick in cannabis industry employment claims over the past year or so in our Washington and Oregon offices. These claims can be very difficult to deal with for a business without basic employment safeguards, like a handbook and conscientious employment practices.
We have written two previous posts in this series on how to protect your marijuana business from the bad acts of your employees. You can find them here (negligent hiring and retention) and here (hostile work environment / harassment). Today, we expand on the latter topic, providing some advice on how to investigate harassment claims.
Ideally, sexual harassment would not occur in any business or professional seeing. Unfortunately, it does, and it is important your cannabis business is ready to properly investigate a sexual harassment claim when it arises. As previously discussed, a proper complaint procedure and investigation is important not only for legal protection against sexual harassment claims, but also to enhance your company’s credibility.
Chili is a staple of winter food. It’s a quick, one-pot meal for any occasion during cold months or anytime you feel the urge to enjoy a warm, home-cooked meal. Chili recipes can be a hot-button issue in some households and we can bet that the ancient family recipe you always make is record breaking-ly good. We understand that everyone loves chili made their personal favorite way, but there is no harm in trying new and exciting things every now and again. Like we always say, these recipes are simply ideas to get you thinking creatively. So please add what you like, and replace what you don’t. Always remember to comment back on social media and let us know what you came up with. Now, let’s make some chili!
“It’s Flame” Hot Italian Sausage Chili
Just like your favorite strain of cannabis, this chili is straight flame. In a variation of a traditional beef chili, we substitute hot Italian sausage for a sweet kick, and, of course, add some cannabis to the mix. This chili is easy to make and if you like spice, strap in for a trip to flavortown.
PRO TIP: Try adding some of this spicy chili to your eggs with toast the morning after cooking.
Properly managing marijuana supply is the single most challenging aspect of state-level marijuana regulation. In an op-ed published January 12th in the Oregonian, Billy Williams, U.S. Attorney for the federal district that encompasses Oregon wrote about what he calls Oregon’s “massive overproduction problem.” According to Williams, postal agents in Oregon seized 2,644 pounds of marijuana in outbound parcels in 2017 alone. Decreasing wholesale prices in Washington and Colorado indicate oversupply as well based on the inverse correlation between supply and price. We hear anecdotes in Washington all the time from marijuana producers that are finding it more and more challenging to survive with the current market prices.
If this were any other market, data points indicating falling prices and oversupply would be wholly unremarkable. Free markets tend to find an equilibrium point between supply and demand that support relatively stable wholesale and retail prices. Free markets also tend to self-correct, if given the opportunity to do so. If businesses in a market are all extremely profitable, new firms are induced to enter the market. The entry of those new firms tends to increase competition and decrease profits across the board, signaling to other would-be market participants not to enter. Similarly, if things are not going well and competitors exit the market, surviving businesses are given a little bit …
In the summer of 2018, the Canadian government plans to make recreational marijuana legal, and while it isn’t yet, many illegal dispensaries have popped up in cities like Toronto in anticipation that soon it will be. These illegal dispensaries have cast confusion over what’s legal and what isn’t, as well as where it’s safe to buy medical marijuana.
Jeff Sessions’ decision to rescind Obama-era guidance on the Department of Justice’s approach to marijuana enforcement was troubling for the cannabis industry. The “Sessions Memo” withdrew earlier marijuana-specific guidance memoranda and directed US attorneys to decide which marijuana activities to prosecute “with the Department’s finite resources,” based on well-established principles that govern all federal prosecutions including, “the seriousness of the crime, the deterrent effect of criminal prosecution, and the cumulative impact of particular crimes on the community.”
The Sessions Memo does not provide much additional insight as to what prosecutors should look for in determining what marijuana crimes to target. In lieu of such guidelines, it is important that stakeholders in the cannabis industry familiarize themselves with the US Attorney in their district. This post is focused on Annette Hayes, the US Attorney for the Western District of Washington.
On January 4, Hayes issued the following statement regarding the Sessions Memo:
Today the Attorney General reiterated his confidence in the basic principles that guide the discretion of all U.S. Attorneys around the country, and directed that those principles shepherd enforcement of federal law regarding marijuana. He also emphasized his belief that U.S. Attorneys are in the best position to address public safety in their districts, and address the crime control problems that are
Recreational cannabis sales are officially underway in California, leaving everyone wondering just how big their cannabis industry will grow. Be sure to check back next quarter for our first pricing report including recreational sales. In the meantime, check out the latest pricing information from the fall of 2017.
Of course, we couldn’t bring you this information without the help of the experts over at BDS Analytics, who aggregate point of sale information from dispensaries across the state.
Let’s take a closer look into the details.
Marijuana Prices in California: Fall 2017
In March of 2017, BDS Analytics began tracking and reporting dispensary sales trends for California’s cannabis industry. Between March and October of 2017, total sales through dispensary and delivery services across the most populous state in the country reached $1.856 billion. Flower contributed to 53 percent of revenues in the state with total sales for the category reaching $989 million. This does not include flower going into pre-rolled joints, as those sales are tracked separately.
Between March and October, the proportion of sales coming from flower vs. other product categories shifted quickly, as more brands flooded the market in anticipation of recreational sales starting in January 2018. Like Colorado, California will likely see flower’s contribution to total revenue dip below 50 percent in …
This week, the Bureau of Cannabis Control (the “BCC”) announced that as of January 9, 2019, Section 11362.775 of the Health and Safety Code (the “Code”) will no longer be in effect. The BCC notice ends the popular collective and cooperative models of cannabis cultivation, manufacturing and distribution in California. These models were promulgated through the use of “creative” legal advice in order to take advantage of the Compassionate Use Act’s multiple loopholes and ambiguities, and usually involved patients joining a “closed loop” membership system (sometimes a formal corporate entity and sometimes not) to receive medical cannabis from other patients in the collective who grow or process it for them.
California’s transition into a regulated commercial cannabis system left many operators, particularly those with non-profit mutual benefit corporations structured as collectives or cooperatives, uncertain as to just how much time they have left to operate. We’ve encountered some operators who, for a variety of reasons including the time and expense of the process, or their inability to comply with local zoning requirements at their current location, are reluctant to abandon the collective model in favor of receiving a state license under MAUCRSA.
Unfortunately, these operators will have no choice but to join the regulated system, and there are a laundry list …
An important question for any cannabis business is: who owns the company’s intellectual property (IP)? The easy way to answer this question is to work it out before any dispute. The much, much harder way is to litigate. As noted in a famous oil filter commercial, “You can pay me a little now. Or you can pay him a lot later!”
The two most common situations where IP ownership disputes arise in a marijuana business are between the owners of a company, and between the company and its employees. Here are some tips on how to handle each situation.
IP ownership in an entity: IP is a capital asset of a cannabis company, and like all other capital assets, e.g., grow equipment, real property, office furniture, software, etc., should be owned by the cannabis company itself, as provided in the entity operating agreement. Issues can occur, however, when the entity wants to use IP that is already owned by a member/owner of the entity.
In particular, many operating agreements provide that a member contributes her IP as initial capital. There is nothing wrong with this, in theory. Intellectual property, like real property or other assets, can be contributed as …
For Canada, July 1st’s adult use legalization day means more than just access to recreational marijuana. It also signals the official full-tilt entrance into what could become a billion dollar a year business for the country. The Canadian government is currently putting the final touches on regulations while local jurisdictions do the same.
Deloitte projected a market potential of $22.6 billion per year for cannabis alone, sans its ancillary products. A November 2016 report from the Canadian Parliamentary Budget Officer projected the market could become a $5.5 billion per year industry. The report acknowledged the upward trajectory of the market – noting,
“Production costs for the legal industry are expected to decline, creating space for government to collect a portion of the cost savings without increasing the legal retail price. Further, a potential consumer shift to more value-added cannabis products could create a larger tax base. Finally, as the legal market becomes more entrenched, more Canadians may opt into the legal market, resulting in higher revenues.”
The report goes on to note only a few factors, namely a supply shortage, that could result in lower earnings. In addition to the sales potential, Canadian officials cite the current law’s failure for the change. Though, officials prefer to highlight crime reform and health as the reasons for the legalization of …
When the City of Los Angeles passed its ordinances allowing commercial cannabis businesses, the City placed limits on the total amount of licenses available in each community for each license category, based on “undue concentration.” The City made it easy to understand the “soft caps” for most of the licensing categories. For each neighborhood’s retailers (Type 10), microbusinesses (Type 12), and manufactures (Type 7) –the ratio is one license per 10,000, 7,500, and 7,500 residents, respectively. The City has even provided the exact number of licenses available on its Commercial Cannabis License Capacity Chart (“License Capacity Chart”), here.
However, the cultivation license limits are more difficult to understand. Here is how the city defines cultivation limits for Undue Concentration:
a ratio of 1 square foot of cultivated area for every 350 square feet of land zoned M1, M2, M3, MR1, and MR2 with a maximum aggregate of 100,000 square feet of cultivated area and a maximum aggregate number of 15 Licenses at a ratio of one License for every 2,500 square feet of allowable cultivated area for Cultivation (Types 1A, 1C, 2A, 3A, 4 and 5A).
After careful examination of this definition, here’s what we think the City means to do with undue concentration and …
Once you decide that medical cannabis is the right choice for your medical treatment, you then have the challenging task of finding the right medical marijuana clinic. There are many different clinics out there, and not all of them are reputable or a good choice.
Just to get one important thing out of the way first of all – we’re not doctors. And nor are we health professionals in any sense of the word. Which in turn means that none of the following information should be interpreted as official medical advice, or even recommendations on our part! It’s all simply […]
As the winter months continue to yield frigid temperatures, it’s time to get cozy and read up on the latest marijuana pricing trends in the Centennial State. As always, we’re bringing you this information with the help of our good friends at BDS Analytics.
BDS Analytics collects point of sale information from hundreds of dispensaries across Colorado to accurately provide pricing reports and trends. We are always grateful for their assistance and without their industry expertise, we wouldn’t be able to provide such robust insights into the cannabis industry. With that being said, let’s explore the pricing data from Fall 2017.
Marijuana Prices in Colorado: Fall 2017
2017 will be known as the year that the contribution of sales from flower dropped to less than 50 percent in Colorado’s cannabis industry.
Through October, just 49.5 percent of sales came from flower.
This key category generated a greater proportion of sales in medical dispensaries, where flower still contributed 54 percent of revenues. In the larger adult-use/recreational channel, flower contributed less than 48 percent of sales in the ten months ending in October, and the trend shows no signs of slowing.
In the two previous entries in this series (here and here), we discussed the packet of rules amendments recently adopted by the Oregon Liquor Control Commission (“OLCC”) to implement the many cannabis bills passed by Oregon last year. Specifically, we discussed a new rule allowing Marijuana Promotional Events, and a small amendment to the definition of “financial interest” that will have a big impact. Today we want to talk about some important changes to canopy sizes.
Before discussing the specific changes, it is important to note that these rules amendments were adopted in an uncertain time in Oregon’s recreational market. As we have noted before, prices for outdoor flower appear to be falling quickly and many producers have contacted our office about the possibility of pushing the OLCC to limit producer licenses, or enact a moratorium on new licenses. (Note: As of January 8, there were 896 active producer licensees in Oregon, with about 1,000 more in the queue). The reality is that the OLCC does not have statutory authority to either limit licenses or enact a moratorium. Only the legislature can make this kind of change, and we think that it is unlikely that it will be considered in the upcoming …
California has 58 counties and 482 incorporated cities across the state, each with the option to create its own rules or ban marijuana altogether. In this California Cannabis Countdown series, we cover who is banning cannabis, who is embracing cannabis (and how), and everyone in between. For each city and county, we’ll discuss its location, history with cannabis, current law, and proposed law to give you a clearer picture of where to locate your California cannabis business, how to keep it legal, and what you will and won’t be allowed to do.
In this post we’ll tell you how to properly assemble and install all the necessary devices in your grow tent to start your indoor grow. This step-by-step guide basically explains how to install your air extraction fan and activated carbon filter, how to mount your grow light and how to program your timers. Let’s get started then!
Indoor grow tent
First thing to do is assembling the grow tent by following the manufacturer instructions. Then, connect the activated carbon filter to the extractor fan with some duct tape. Once it is properly sealed (you can also use metal duct clips) you can make the necessary electrical connections (two wires).
Next, you must hang up the carbon filter and the extractor fan with the strips included in your grow box (see pics below). Then, connect the air duct to the air fan and pass it through one of the holes designed for such use. The ideal would be to remove the air inside the grow tent to another room or directly to the outside. Also, keep in mind that it’s always better to place the carbon filter on top of the interior space, since hot air rises.
If necessary, you can leave one of the bottom holes open as …
For our international readers, Martin Luther King, Jr. Day is an American federal holiday marking the birthday of its eponymous civil rights hero. Dr. King was the chief spokesperson for nonviolent activism in the Civil Rights Movement, which successfully protested racial discrimination in federal and state law. Dr. King was assassinated in 1968, four years after the passage of one of the great U.S. laws of the 20th century, the Civil Rights Act of 1964. His death also came two years prior to one of the 20th century’s most controversial and insidious laws, the Federal Controlled Substances Act of 1970 (CSA).
As cannabis business lawyers, we write about cannabis law topics every day of the year on this blog, but we seldom address pure social issues. When it comes to cannabis, however, it is sometimes difficult to separate law and policy. This is because the federal prohibition of marijuana in the United States has had a racially disparate impact on non-white individuals, especially black and Latino Americans. That should come as no surprise to anyone: It is well documented that former president Richard Nixon wanted to link marijuana use and its negative effects to African Americans and hippies, who he perceived to be his …
Super Lemon Haze has collected more awards over the years than we’ve time to get into right now. Suffice to say, two of these were no less than two Cannabis Cup trophies in a row, back in 2008 and 2009. Having started out as something of an unknown, this incredible Sativa hybrid quickly gained traction […]
The rise of the cannabis industry has brought popularity to many ancillary businesses. Perhaps the most prevalent of these businesses are those found within the booming cannabis tourism industry. As the alcohol industry before it, the cannabis industry is rapidly evolving with products and niches expanding every day.
Cannabis tourism has been no exception to this phenomenon. From all-inclusive tours suited to fit large groups of friends to individualized packages for cannabis connoisseurs to complete newbies looking to dive in head first, there is something for everyone in the cannabis tour industry.
Why Cannabis Tours?
Whether you’re a first-time smoker for someone who has indulged in every form of cannabis available, a cannabis tour makes an excellent option for someone looking to expand their knowledge or discover what’s available within the cannabis industry today.
For novice cannabis enthusiasts, cannabis tours are a great way to deepen their understanding of cannabis products.
With introductions to head shops, grow rooms, restaurants, and dispensaries, novices will be shown a side of the cannabis industry that many have not previously experienced
Grow tours are an awesome way to gain insight into the cannabis industry.
For the connoisseurs, cannabis tours are a perfect way to deepen their breadth of knowledge within the cannabis industry. They’ll get a firsthand look at how grow rooms operate, …
President Trump signed the Tax Cuts and Jobs Act (the “Act”) into law on December 22, 2017. The Act contains several sections that will impact companies that work with cannabis businesses and provide important indications of where states might be going with taxes in the coming year. As for the Act itself, its sweeping provisions went into effect on January 1, 2018.
Note that much of the Tax Act’s deductions and credits won’t apply to cannabis businesses due to IRC 280E, but these deductions and credits are still important to many ancillary businesses that serve the industry, and which may not be subject to 280E (we recommend that anyone with questions as to where they fall seek advice from their CPA or cannabis tax attorney). If these credits and deductions prove to be popular we may see states enact similar changes that will directly affect cannabis business themselves.
On the employment front, many cannabis businesses obtain employees through staffing agencies. Those agencies should will be subject to these new tax deductions and credits. We may see an influx of agency recruits, or a decrease, depending on how the recruitment companies take advantage of these deductions and how the new …
It was big news for California cannabis business owners when the California Secretary of State’s office announced that it would be accepting applications for cannabis-related trademarks under limited circumstances. Until January 1st, one of the biggest hurdles for California cannabis brand owners had been the inability to secure California state trademark registrations for their marks. But we are still receiving a lot of questions from clients regarding whether they are actually eligible for those registrations, particularly when they have not yet received their temporary or full license from the state, or even when they are not yet operating.
As we’ve discussed before, one of the key requirements for obtaining a California state trademark registration (or a federal trademark registration, for that matter) is that you must be making lawful use of the mark in commerce at the time of your application. For any state trademark application, this means you must be making lawful use of your mark in commerce within that state. This requirement has created a good deal of difficulty for those seeking to enter into cross-state brand licensing deals, but it’s also creating some confusion here in California, where it isn’t always clear what “legal use” of a mark entails.
The California Secretary of State’s office has indicated that …
For any marijuana business not fortunate enough to own its land outright, there are few documents more important than the lease. Not only is the lease the only transactional document reviewed by the Oregon Liquor Control Commission (OLCC) prior to licensure, but it sets fundamental operating parameters than can determine the success –and even life cycle — of the business. Problematic lease arrangements can sink a ship fast.
In Oregon, there are four main varieties of leasehold: the residential lease, the commercial lease, the ground lease and the agricultural lease. We steer most of our pot industry clients toward commercial and agricultural leases, depending on the circumstance. That said, we have had people walk in with just about everything.
Below is a brief summary on each type of lease, what to look for, and when to use them.
Do not use a residential lease for a commercial cannabis operation under any circumstances. Even if you think you can revise the lease form to suit your purposes, do not be tempted; and if your landlord insists on this form of lease, say no. We are currently aware of two pieces of landlord-tenant litigation in which the parties used a residential lease for a commercial cannabis grow: those leases were upside down on everything, including …