Dale Schafer Law News+ 9/20/22

#californiacannabis – “California Gov. Gavin Newsom has signed 10 new cannabis bills into law ranging from SB 1326 to create a basis for interstate cannabis transactions with entities outside California, to SB 1186, which will grow patients’ access to legal cannabis. AB 1706 will seal old cannabis-related convictions and AB 2188 aims to protect against employment discrimination based on use of cannabis while away from the workplace. The measures also included AB 1885 to allow veterinarians to recommend cannabis for pets. Newsome signed the bills on Sunday, the statement said.”

https://www.marketwatch.com/amp/story/california-gov-gavin-newsom-signs-10-cannabis-bills-into-law-2022-09-20

Dale Schafer Law News – 9/19/22

#californiacannabis – “When asked this week if city planners were aware of the name of the dispensary and what exactly the signs would look like at the time the business permit was approved, Community Development Director Craig Schlatter explained in an email that: “No City Staff, Planning Commissioners, or Design Review Board members were aware of the proposed name or signage at the time of the dispensary’s use permit review and approval. Instead, generic/placeholder signage was presented by the applicant. Staff was not made aware of the Cookies name until a building and sign permit were submitted on May 26, 2022. The signage was ministerially approved by the department in June 2022.”

When asked if the sign could be changed now, and if so, what the process for that would be, Schlatter said that “at this stage, the signage conforms to the objective signage criteria in Ukiah City Code,”  but that “all approved use permits for cannabis dispensaries are subject to a one-year renewal approved by the Zoning Administrator.”

During the review of the permit, Schlatter said he, in his capacity as Zoning Administrator for the city, “will evaluate the business for appropriateness and conformance with the required Use Permit Findings,” which include: (G) That…no significant nuisance issues or problems are anticipated or have resulted from dispensary operations; (N) That the applicant has not knowingly made a false statement of material fact or has knowingly omitted to state a material fact in the application for a permit; (P) That the applicant has not engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.”

Schlatter also pointed out that “the California Bureau of Cannabis Control is the regulator of adult-use cannabis and consequently regulates advertising/signage of cannabis businesses. Although BCC’s website notes that ‘All advertising and promoting of commercial cannabis must not use objects, such as toys, inflatables, movie display, depiction, or image designed in any manner likely to be appealing to minors or anyone under 21 years of age,’ enforcement of such requirements is ultimately the responsibility of the BCC.””

https://www.ukiahdailyjournal.com/2022/09/15/cookies-name-of-new-cannabis-dispensary-in-ukiah-has-many-concerned/

Posting this because we still have investors and operators, in the cannabis industry, who have no idea this is true….

#cannabisindustry – “Despite the growing public acceptance of marijuana and the fact that a majority of states have legalized marijuana for medicinal purposes (37 states and the District of Columbia have enacted medical marijuana legislation), federal law still treats marijuana cultivation and sale as a criminal offense. See 21 U.S.C. § 801, et seq. As bankruptcy is only available under federal law, this dichotomy between state and federal law can result in actions that potentially preclude businesses and individuals from accessing the protections afforded under the U.S. Bankruptcy Code (the “Code”).”

https://www.jdsupra.com/legalnews/does-involvement-in-the-cannabis-7364049/

#hempderivedproducts – “According to a survey conducted by the firm on 5,000 consumers, 18% of Americans are aware of delta-8, and 6% of Americans say they’ve used it in the past six months.

On average, hemp-derived THC users tend to be male, live in a city, and have children in the home…..

The survey revealed that while 62% of delta-8 or -10 THC users are millennials or younger, 14% of millennials and Gen Z consumers have used delta-8 or -10 since 2021.

As regards the reasons that brought people to use this category of products, 56% of users consider themselves more stressed by their mental health than the average consumer and cannabis and CBD users.

Furthermore, 71% of users consume THC hemp-based products for relaxation, while 62% of CBD consumers and 59% of cannabis users do it for the same reason.

The report highlights that a growing number of CBD consumers are simultaneously using hemp-derived THC products.

Awareness of delta-8 and -10 THC has risen among CBD consumers.”

https://www.forbes.com/sites/dariosabaghi/2022/09/16/new-report-gives-insight-into-hemp-derived-thc-consumers/?sh=51ae17085089

Courtesy of the Daily Beast

#psilocybin – Colorado – “Enter Initiative 58, a proposal on the ballot this fall that would legalize psilocybin, the key ingredient in magic mushrooms and—depending on who you ask—either open the doors to science-backed therapy or spawn a generation of shroom- and weed-crazed youth.

The proposal is framed almost entirely around a growing body of research pointing to potential mental-health benefits from drugs like magic mushrooms, which studies have suggested can help treat alcoholism and depression, among other conditions. It would establish a state-regulated therapeutic access program for mushrooms at state-licensed “healing centers,” under the supervision of state-licensed “facilitators.”

In other words, no straight-up dispensaries that cater to weekend Bachelor Parties.

But it would also decriminalize growing, possessing, using, and giving away mushrooms, along with three other plant-based psychedelic drugs: DMT, mescaline, and ibogaine. And after the therapeutic program for psychedelic mushrooms is up and running, the longer list of psychedelics could be reviewed for inclusion in the legal access regime in 2026.”

https://www.thedailybeast.com/colorado-psilocybin-legalization-might-just-be-the-start

Congratulations to our clients, Weed For Warriors Project, for breaking into Fresno!

#californiacannabis – “Weed for Warriors partnered with a North Fresno cannabis shop to give out free products to Valley veterans suffering from PTSD and other service-related health concerns.

Events like this have been happening for years across the state, but this was the first time one was able to be held in Fresno.

Dozens of veterans came out to Embarc to recieve their free cannabis….

Mark Carrillo, the COO of Weed for Warriors, explained who they are trying to help, “Patients, people on disability, set incomes, can’t come in here and spend a third of their money on medicine. They’ve got to eat. They’ve got to keep a roof over their head.”

The leading motivator for Weed for Warriors is the nationwide veteran suicide crisis. On average, 22 veterans die by suicide every day.

“Legal access for veterans and other patients to get what they need is saving lives,” says Carrillo.”

https://abc30.com/weed-for-warriors-free-cannabis-veterans/12239124/

Dale Schafer Law News – 9/16/22

#cannabislaw – “A California federal judge is not happy with the way a cannabis industry banking firm has been behaving during discovery in a dispute accusing it of withholding funds from a client, and he has told Pacific Banking Corp. that “sanctions are going to fly.”….

The dispute landed before Judge Donato in March 2020, when Cann Distributors accused Pacific Banking of failing to make millions of dollars in tax payments to the state of California on its behalf, as well as failing to pay vendor invoices. The company also secured an order blocking Pacific from touching the roughly $2.8 million Cann said it had deposited with the marijuana-friendly financial institution, a middleman of sorts between cannabis companies and traditional banks.

After a short back-and-forth at the hearing, Judge Donato’s ire landed on Pacific Banking. The hearing was called because Cann Distributors said lawyers for Pacific Banking made outright denials — for example, regarding whether it had made certain payments — during the request-for-admissions process, but later during interrogatories said they didn’t have enough information to answer the same questions.

An attorney for Pacific Banking, Stephen M. Lobbin of SML Avvocati PC, said: “Perhaps there was a collation error on my part.”

“Don’t say ‘perhaps.’ Own it. Own it. You didn’t do the right thing,” Judge Donato responded. “And we’re here today, burning my time and my scarce judicial resources — I’ve got 400 other cases that are more deserving [of] attention than this, which is our fifth or sixth round of these discovery disputes, which are largely because you on the defense side are a rock in the gears of this court.”

Judge Donato accused Pacific Banking of “outright gamesmanship” and told the company, “The hammer is going to drop all on you.””

https://www.law360.com/california/articles/1530019/sanctions-will-fly-in-cannabis-bank-discovery-dispute?nl_pk=87a814fe-acbd-41b5-9dff-8f51227935f5&utm_source=newsletter&utm_medium=email&utm_campaign=california&utm_content=2022-09-16

Dale Schafer Law News – 9/15/22

#cannabispolitics – “A California lawmaker on Wednesday introduced a federal bill that would allow small, licensed cannabis operators to sell and ship their products directly to consumers, including across state lines. Known as the Small and Homestead Independent Producers (SHIP) Act, the legislation was introduced in the U.S. House of Representatives on Wednesday by Democratic Rep. Jared Huffman of California. If passed, the SHIP Act would allow small cannabis farmers to send marijuana purchases to customers through the mail, including across state lines to consumers in other states with legal cannabis.”

https://www.forbes.com/sites/ajherrington/2022/09/14/california-lawmaker-unveils-bill-to-legalize-direct-to-consumer-marijuana-sales-nationwide/?sh=3de807265058

#cannabisindustry – “Thompson Coburn LLP has released its latest state-by-state ranking of state cannabis regulations. The guide provides a holistic review of the current cannabis laws in every state including the District of Columbia, from favorable to cannabis businesses to most restrictive. This is the fourth year for the report and it is researched and produced by the Firm’s Tracking Cannabis blog team, and authored by Barry Weisz, a partner in the Thompson Coburn Los Angeles office.

The rankings look at a variety of factors including Cannabidiol (CBD), medical and recreational cannabis, non-profit cannabis entities, commercial cannabis licenses, cannabis regulatory agencies, developments and trends, and business opportunities…..

Leading the rankings again is California (#1), the first state to legalize medical marijuana in 1996. Since then, the state has legalized adult-use marijuana, and created a uniform licensing regime for both medical and recreational marijuana use across the state. The biggest restrictions and legal complexities lie in the area of commercial cannabis activities. A new law passed in July 2022 eliminates the state’s weight-based cannabis cultivation tax to be paid by market growers and created new tax credits for certain cannabis businesses. Other pending legislation would affect employers’ treatment of persons who use cannabis, and potential loosening of restrictions on labeling/marketing requirements for cannabis products.”

https://www.jdsupra.com/legalnews/2022-state-by-state-ranking-of-cannabis-6795051/

Careful out there!

#cannabislaw – “The SEC claims that in four rounds of press releases spanning 2018 and 2019, the defendants “touted Profile’s purported cannabis business deals with Eswatini, but failed to disclose that cannabis was in fact illegal in Eswatini.”

The SEC also claimed that the company announced in 2018 that it had made a deal to work with an international distributor that would sell its cannabis products in Mexico and Argentina even though the distributor, which is identified only by its initials in the complaint, was “not licensed, or otherwise legally able, to distribute Profile’s cannabis products in Mexico and Argentina.”

The regulator alleged that despite the fact that Tucker was described on the company’s website as a consultant, he was actually running the show, serving as Oran’s self-described “right hand,” serving in “a central, executive-like role” and doing everything from coordinating with the company’s lawyers and accountants to posting its promotional tweets”

https://www.law360.com/articles/1529239/sec-claims-cannabis-co-hid-executive-like-felon-s-role

#cannabislaw – Nevada – “The Nevada Board of Pharmacy’s classification of cannabis as a Schedule 1 drug is unconstitutional, a district judge ruled Wednesday.

The ruling came in a lawsuit filed against the Board of Pharmacy by the American Civil Liberties Union of Nevada on behalf of plaintiffs Antoine Poole and the Cannabis Equity and Inclusion Community, an organization that helps people get established in the state’s marijuana industry….

On Wednesday, District Judge Joe Hardy Jr. agreed with the ACLU’s argument that marijuana does have an accepted medical use, because voters amended the state constitution in 2000 to legalize medical marijuana. He also ordered the Board of Pharmacy to remove cannabis from the list of Schedule 1 drugs.

“The constitutional right to use marijuana upon the advice of a physician does establish that marijuana has an accepted medical use and treatment in the United States,” Hardy said….

During the court hearing, Hardy said he was not ruling on any issues related to overturning convictions for marijuana-related crimes, because the ACLU’s lawsuit did not address the topic.”

https://www.reviewjournal.com/news/politics-and-government/nevada/nevadas-drug-classification-for-cannabis-ruled-unconstitutional-2639840/

Courtesy of Reuters

#cannabisindustry – “The two primary challenges are to regulations that allegedly violate the U.S. Constitution’s dormant commerce clause by limiting licenses to state residents, and challenges to largely discretional licensing determinations under the due process clause. Recent decisions show that dormant commerce clause challenges may be far more viable in the long term. Indeed, some legal scholars predict that these early successes are only the beginning of the road…..

Earlier this year, we flagged an appeal to the 1st U.S. Circuit Court of Appeals addressing the constitutionality of Maine’s residency requirement for cannabis business owners and operators as one of the top cases to watch in 2022….the implications of this decision are significant, especially for multistate operators (or MSOs) who are now able to point to federal precedent to challenge residency-based regulations for both medical and adult-use cannabis licensing. And, although the ruling does not immediately pave the way for interstate cannabis commerce, scholars like Robert Mikos (professor at Vanderbilt Law School and one of the leading experts on the intersection of federalism and cannabis), predict that such a challenge could be on the horizon.”

https://www.reuters.com/legal/litigation/constitutional-considerations-federally-illegal-cannabis-industry-2022-09-14/

Dale Schafer Law News – 9/14/22

Beware of those selling snake oil…..

#cannabisindustry – “A California cannabis attorney and his business partners helped people obtain social equity licenses in Los Angeles only to trick them into handing over their cannabis businesses and “every penny” of profit generated, according to state court lawsuits accusing the defendants of targeting low-income residents with no legal education….

Through a series of illegal, unconscionable agreements, defendants in bad faith — and in breach of their fiduciary duties — defrauded plaintiff into giving defendants all the profit generated by the retail cannabis business operated under his license, as well as all control over the business defendants promised plaintiff would own,” according to both lawsuits, which were filed on Friday. “And even though defendants were skilled business operators with years of regulatory, legal and industry experience, plaintiff was forced to sign the agreements under extreme time constraints and duress, and without any opportunity to consult with counsel.””

https://www.law360.com/articles/1529689

Courtesy of LA Weekly

#californiacannabis – “The California Department of Cannabis Control is disputing a statistic used by the San Bernardino County Sheriff’s Department on NBC Nightly News.

The Sept. 7 edition of the NBC broadcast features a report on human trafficking in the cannabis industry. Before the report came the first surprise for cannabis industry pros, when Lester Holt even prefaced the it with the claim of a new trend from law enforcement.

That trend? Victims of human trafficking were growing cannabis that ended up on the shelves of permitted California dispensaries. Cut to NBC’s crew on a ride along with the sheriff in the Mojave Desert on a raid. The property features a spread of greenhouses and a voiceover with claims of illegal marijuana being grown with illegal methods per the sheriff…..

“No information from our licensing, compliance, or enforcement divisions corroborate these claims. Unsubstantiated claims destroy public confidence in the legal cannabis market and do a disservice to the thousands of businesses working to follow the law. Our enforcement division works closely with federal, state and local partners, including the San Bernardino Sheriff’s Office, and will continue to provide coordinated resources and support to aid in their efforts to combat the illegal market,” the state told L.A. Weekly.

Most experts in the industry agree the exact opposite of what the sheriff claimed is happening. The marketplace is so flooded with legal product, it has crashed the market price of marijuana. Many farmers chose not to plant this year because it would not be worth their time. This flood of products on the recreational market is the main point of financial strife for the legacy communities that backboned California’s market for decades. It is undeniable that there hasn’t been a true drought since 2019 and there is a ton of pot left over annually.”

https://www.laweekly.com/dcc-san-bernardino-sheriffs-claims-unsubstantiated/

Dale Schafer Law News – 9/14/22

Beware of those selling snake oil…..

#cannabisindustry – “A California cannabis attorney and his business partners helped people obtain social equity licenses in Los Angeles only to trick them into handing over their cannabis businesses and “every penny” of profit generated, according to state court lawsuits accusing the defendants of targeting low-income residents with no legal education….

Through a series of illegal, unconscionable agreements, defendants in bad faith — and in breach of their fiduciary duties — defrauded plaintiff into giving defendants all the profit generated by the retail cannabis business operated under his license, as well as all control over the business defendants promised plaintiff would own,” according to both lawsuits, which were filed on Friday. “And even though defendants were skilled business operators with years of regulatory, legal and industry experience, plaintiff was forced to sign the agreements under extreme time constraints and duress, and without any opportunity to consult with counsel.””

https://www.law360.com/articles/1529689

Courtesy of LA Weekly

#californiacannabis – “The California Department of Cannabis Control is disputing a statistic used by the San Bernardino County Sheriff’s Department on NBC Nightly News.

The Sept. 7 edition of the NBC broadcast features a report on human trafficking in the cannabis industry. Before the report came the first surprise for cannabis industry pros, when Lester Holt even prefaced the it with the claim of a new trend from law enforcement.

That trend? Victims of human trafficking were growing cannabis that ended up on the shelves of permitted California dispensaries. Cut to NBC’s crew on a ride along with the sheriff in the Mojave Desert on a raid. The property features a spread of greenhouses and a voiceover with claims of illegal marijuana being grown with illegal methods per the sheriff…..

“No information from our licensing, compliance, or enforcement divisions corroborate these claims. Unsubstantiated claims destroy public confidence in the legal cannabis market and do a disservice to the thousands of businesses working to follow the law. Our enforcement division works closely with federal, state and local partners, including the San Bernardino Sheriff’s Office, and will continue to provide coordinated resources and support to aid in their efforts to combat the illegal market,” the state told L.A. Weekly.

Most experts in the industry agree the exact opposite of what the sheriff claimed is happening. The marketplace is so flooded with legal product, it has crashed the market price of marijuana. Many farmers chose not to plant this year because it would not be worth their time. This flood of products on the recreational market is the main point of financial strife for the legacy communities that backboned California’s market for decades. It is undeniable that there hasn’t been a true drought since 2019 and there is a ton of pot left over annually.”

https://www.laweekly.com/dcc-san-bernardino-sheriffs-claims-unsubstantiated/

Dale Schafer Law News – 9/13/22

#cannabisindustry – “Cannabis industry mergers and acquisitions take many shapes, sizes, and forms. The trends surrounding this M&A activity are heavily influenced by investor sentiment, new market development, domestic and global political reforms, external economic pressures, and high-profile failures. While numerous groups look to deploy capital toward exciting opportunities with tremendous upside, others simply look to stay afloat.

Much of this is dictated by management teams – their viability, industry intelligence, short- and medium-term strategic planning, lack of proficiency thereof, or the inability to follow Wayne Gretzky’s advice: “Skate to where the puck is going, not where it has been.” Instead of chasing what has already happened, cannabis industry operators must always try to stay a step ahead. In large part, due to the lack of real-time context in this decentralized and fragmented industry, management teams have difficulty understanding the context of where the puck is right now, let alone, where legitimate trends and opportunities are taking it.”

https://www.forbes.com/sites/roberthoban/2022/09/12/shifting-winds-whats-next-for-cannabis-mergers-and-acquisitions/?sh=4b1e31fc67b5

Courtesy of MJBiz Daily

#californiacannabis – “More than two dozen California cities and counties could establish new recreational marijuana markets through ballot measures in November, creating up to 250 retail licenses and countless other business opportunities for plant-touching and ancillary companies….

If cannabis tax ballot measures pass as expected in the state’s most populous counties:

Los Angeles County could approve as many as 25 stores.

Sacramento County could OK 10-20 marijuana stores.

San Diego County could license 20-40 retailers.

Those victories alone would add purchasing options for more than 15 million residents in the three combined counties…..

Other cities expected to have cannabis ballot measures include:

Dana Point.
Lake Forest.
Ontario.
Pacific Grove.
Riverside.
Sausalito.”

https://mjbizdaily.com/dozens-of-california-cities-counties-could-approve-new-recreational-marijuana-markets/

Dale Schafer Law News – 9/13/22

#cannabisindustry – “Cannabis industry mergers and acquisitions take many shapes, sizes, and forms. The trends surrounding this M&A activity are heavily influenced by investor sentiment, new market development, domestic and global political reforms, external economic pressures, and high-profile failures. While numerous groups look to deploy capital toward exciting opportunities with tremendous upside, others simply look to stay afloat.

Much of this is dictated by management teams – their viability, industry intelligence, short- and medium-term strategic planning, lack of proficiency thereof, or the inability to follow Wayne Gretzky’s advice: “Skate to where the puck is going, not where it has been.” Instead of chasing what has already happened, cannabis industry operators must always try to stay a step ahead. In large part, due to the lack of real-time context in this decentralized and fragmented industry, management teams have difficulty understanding the context of where the puck is right now, let alone, where legitimate trends and opportunities are taking it.”

https://www.forbes.com/sites/roberthoban/2022/09/12/shifting-winds-whats-next-for-cannabis-mergers-and-acquisitions/?sh=4b1e31fc67b5

Courtesy of MJBiz Daily

#californiacannabis – “More than two dozen California cities and counties could establish new recreational marijuana markets through ballot measures in November, creating up to 250 retail licenses and countless other business opportunities for plant-touching and ancillary companies….

If cannabis tax ballot measures pass as expected in the state’s most populous counties:

Los Angeles County could approve as many as 25 stores.

Sacramento County could OK 10-20 marijuana stores.

San Diego County could license 20-40 retailers.

Those victories alone would add purchasing options for more than 15 million residents in the three combined counties…..

Other cities expected to have cannabis ballot measures include:

Dana Point.
Lake Forest.
Ontario.
Pacific Grove.
Riverside.
Sausalito.”

https://mjbizdaily.com/dozens-of-california-cities-counties-could-approve-new-recreational-marijuana-markets/

Dale Schafer Law News – 9/8/22

#psychedelics – San Francisco – “San Francisco’s Board of Supervisors on Tuesday unanimously approved a resolution to decriminalize psychedelic plants and fungi and implored local law enforcement to deprioritize pursuing individuals for using, cultivating or distributing plant-based drugs, including psychedelic mushrooms and cacti.

The resolution applies to the “full spectrum of plants, fungi and natural materials that can inspire personal and spiritual well-being, can benefit psychological and physical wellness and can reestablish humans’ inalienable and direct relationship to nature,” according to the text….

The resolution urges local law enforcement agencies to deprioritize “the investigation and arrest of adult persons for planting, cultivating, purchasing, transporting, distributing, engaging in practices with” the plant-based substances at issue.”

https://www.law360.com/california/articles/1528224/sf-supervisors-ok-psychedelics-decriminalization-measure?nl_pk=87a814fe-acbd-41b5-9dff-8f51227935f5&utm_source=newsletter&utm_medium=email&utm_campaign=california&utm_content=2022-09-08

#californiacannabis – “A Los Angeles County judge has dismissed a hemp product company’s dispute with a processing firm over a business agreement to provide a certain cannabinoid produced from raw materials, finding that the interests in the case “weigh strongly against” California jurisdiction.

Judge Thomas D. Long sided with defendant Old Belt Extracts LLC’s motion to dismiss on Sept. 1, finding that North Carolina is a more fitting venue for the dispute with plaintiff Delta Technologies LLC.

“Although the Defendant may have had sufficient minimum contacts with California, exercise of California jurisdiction would be unreasonable,” the order said. While the court concluded that there is a connection between California and the claims at issue, Old Belt Extracts’ main place of business is in North Carolina, as is evidence, the order said.

The decision stems from a May complaint in which Delta Technologies alleged that hemp processor Old Belt Extracts didn’t live up to its end of an extracting deal for raw materials by dragging its feet on producing the extracts it promised. Delta Technologies said it doesn’t believe the extract came from its materials.”

https://www.law360.com/california/articles/1527658/-ponzi-cannabis-extract-suit-belongs-in-nc-calif-judge-says?nl_pk=87a814fe-acbd-41b5-9dff-8f51227935f5&utm_source=newsletter&utm_medium=email&utm_campaign=california&utm_content=2022-09-08

#cannabispolitics – California – “The governor of California signed a bill on Tuesday that includes provisions mandating that social workers who are called to investigate child welfare handle parental marijuana use in the same way that they do for alcohol….

Under the now-enacted law, the state Department of Social Services (DSS) is required to update “all regulations, all-county letters, and other instructions relating to the investigation of a minor” to stipulate that “when a social worker is investigating an alleged case of child abuse or neglect, a parent’s or guardian’s use or possession of cannabis is treated in the same manner as a parent’s or guardian’s use or possession of alcohol and legally prescribed medication.””

https://www.marijuanamoment.net/california-governor-signs-child-welfare-bill-treating-parental-marijuana-use-just-like-alcohol/

#californiacannabis – Prop 65 – “Over the past 10 years, Proposition 65 plaintiffs have turned their sights on the cannabis industry, issuing over 200 notices of violation for a variety of chemicals in products from smokable marijuana flower and CBD oil to vape pens and hemp-based personal care products. While there were spikes in the number of notices issued in 2014 and 2017, there has otherwise been a slow but steady increase in the claims relating to cannabis products since 2018.

While the majority of the notices target a few obvious Proposition 65 listed substances — e.g., marijuana smoke and THC — there are also notices alleging that cannabis products expose consumers to substances such as beta-myrcene, lead, carbaryl, carbon monoxide, soots, tars and mineral oils.

Some plaintiffs have issued notices for cannabis products relating specifically to the chemical content of the packaging — for example, while the cannabis product itself may not have a Proposition 65 listed chemical, the plastic carrying case for the product contains phthalates.[1]

There have also been several notices targeting marijuana delivery services for failure to display Proposition 65 warnings on their websites.[2] As a reminder, Proposition 65 requires that companies selling products over the internet must provide warnings on their websites. The warnings must be displayed to the purchaser prior to completing the purchase.[3]

Additionally, in June, a Proposition 65 notice was issued to an indoor cannabis cultivation facility for causing exposures to diesel engine exhaust, allegedly from the diesel generators used in their growing operations.[4]”

https://www.law360.com/california/articles/1526213/cannabis-cos-should-brace-for-more-prop-65-scrutiny-suits

Dale Schafer Law News – 9/7/22

Our office attended this meeting until nearly 1am this morning. The real deal is that 2 (newer elected) Council members brought this before the council after 30 public hearings on how cannabis businesses would be regulated. Ultimately, this was not a 45 day moratorium but a 45 day + 22 month moratorium to accomplish what these two City Council members were asking for, a full zoning ordinance after the fact. If imposed, the moratorium would have prevented at least 6 groups from getting to the CUP Hearing that they have waited 2 years for. This was not passed last night.

#californiacannabis – “Residents are upset after hearing that five cannabis businesses already approved would go in and around our downtown area….

The city council wants to impose a temporary moratorium for 45 days on the intake, processing, and approval of any more cannabis applications.”

https://www.kcra.com/article/tracy-city-council-discuss-future-pot-dispensaries-within-city-limits/41092293#

#employeerights – “The D.C. Office of Employee Appeals (OEA) ruled in favor of the employee, who petitioned the termination in April 2021, arguing that OUC falsely accused her of being impaired because her eyes were red and she was talking quietly, prompting supervisors to initiate a reasonable suspicion referral and drug test that did show THC metabolites in her system.

The employee asserted that her eyes may have appeared red because she had received almost no sleep after being informed of her brother’s hospitalization from a drug overdose, after which point she stayed at the hospital and then returned to her next shift just hours after returning home. She said she was tired but stable enough to perform the job.

She further provided proof both to the employer and OEA that she was a registered medical cannabis patient. She said she hadn’t used cannabis on the day of the drug test, but she’d consumed recently enough on a weekend when she wasn’t working that the THC metabolites would still be detectable.”

https://www.marijuanamoment.net/d-c-court-reverses-firing-of-government-worker-who-tested-positive-for-marijuana/

#cannabisindustry – “As the industry grows and becomes vigorously competitive, the need for cannabis entrepreneurs to adopt a strategy for intellectual property (IP) acquisition and protection also becomes increasingly important. If a cannabis proprietor does not have control of its IP, then it loses the opportunity to capitalize on it. Moreover, having an established IP portfolio often makes a business more attractive to investors, and facilitates licensing of products and brands for expansion.”

https://www.jdsupra.com/legalnews/the-need-for-cannabis-businesses-to-7070940/

Courtesy of Canna Law Blog

#californiacannabis “In recent months, California enacted some tax reform that provides a modicum of relief to cultivators (it really just shifts the tax burden predominantly to retailers while eliminating the cultivation tax), but that hasn’t been enough to help cannabis businesses fend off an overall inability to timely and fully pay all cannabis and excise taxes. What’s happening then is that cannabis businesses are finding themselves faced with the prospect of trying to get on payment plans with CDTFA for the balance owed, which includes interest and penalties. If you’re flirting with getting on a CDTFA cannabis payment plan (because, I can assure you, just not paying your taxes will not work), here’s what you need to know…….”

https://harrisbricken.com/cannalawblog/california-cannabis-tax-payment-plans/