Legally-Blunt

April is usually one of the busiest months for the Legislature, with lobbyists and advocates filling the halls of the Capitol to work with elected officials on pending legislation. But since mid-March, Sacramento has been eerily quiet as legislators try to help flatten the curve and prevent the s...

Independent contractors are a beneficial tool for companies, especially new or growing organizations that are not yet equipped to manage employees. However, recent rulings and the legislature have severely restricted the ability to properly classify workers as independent contractors in Californi...

Over 160 days have passed since Phase 3 Round 1, and the DCR has paused all processing of applications due to a pending audit and stakeholders are getting desperate. While they hang in limbo, DCR has provided an update of the status of all licensing matters. Read below for the full LA licensing u...

Written by By now, legislators have introduced most of the bills that they will try to pass through in 2020. The illicit market, lack of access, and financial concerns have come out as top concerns for the industry this year. While some legislators have started by pushing old bills forward, ot...

Written by and Shannon Heatley and Caroline Gill J.D. expected 2020  With the opening of Lowell Cafe (which has been recently redubbed the “Original Cannabis Cafe”), the first nationally-recognized cannabis consumption restaurant that opened in October 2019 in West Hollywood, Lowell's position...

In California, 2019 was an interesting year and 2020 will continue to challenge cannabis business operators almost to a breaking point, but the hardships suffered this year will pave the way for major regulatory reform and tax reform. Those that survive this year's struggles will reap the benef...

Governor Newsom and his Administration are starting out the new decade strong with a proposed budget that benefits from a generous surplus. The $222.2 billion budget plan includes new funding for many programs and restructuring of others, including the regulatory framework for the cannabis indu...

Co-Author On October 31, 2019 — yes, on Halloween and almost a year after the legalization of commercial hemp production — the USDA finally released its interim final rule (“IFR”) to establish the Domestic Hemp Production Program.  As you may recall, on December 20, 2018, the Agricultural Im...

Written by: Jennifer Raphael Komsky, Esq The California Legislature and Governor Newsom were busy in 2019 passing many new laws directly affecting California employers and employees. Please remember, only summaries are provided herein and legal advice should be sought prior to enactment of any...

It has been two years since California began licensing yet operators still struggle with compliance and are all still de facto, breaking one law or another.  To kick us off, hemp was legalized at the federal level, and we entered into unchartered territory, navigating uncertain waters of the newe...

In the countdown to the new year, it is important to evaluate your employment relationships and ensure compliance with the countless employment laws governing California businesses. Many of these laws are draconian in nature and non-compliance may lead to claims that are crippling to a company,...

As people prepare for 2020, it's important to remember that new cannabis laws will go into effect beginning January 1. A couple of notable ones are Jojo's law (SB 223, authorizes local education authorities to adopt policies that allow a student's parent or guardian to administer certain types ...

While the City of Los Angeles is receiving backlash for Phase 3 Retail Round 1 Licensing processes, the City of West Hollywood (“WeHo”) is actively defending its own application and licensing procedures in court. On September 4, 2019, MedMen, by and through its subsidi...

Black Friday may be right around the corner, but the state isn't making it easy for cannabis business owners to see their accounting books transition into the black this year. Business owners striving to be compliant are still facing what seem to be insurmountable challenges in order to succeed b...

Written by: Caroline Gill  It's no secret that the conflict between state and federal law has created banking issues for hundreds of state-licensed and regulated marijuana businesses.  Cue the Secure and Fair Enforcement Banking Act of 2019 - This bill, better known as the SAFE Banking Act, wa...

Since our last LA Update, the application submission process for Phase 3, Round 1 has come and gone and there have been numerous announcements and new proposed rulemakings for all cannabis-related businesses in Los Angeles.  Phase 1 EMMDs will finally start having their annual applications revi...

Going into the end of the legislative session, many members of the cannabis industry were optimistic about the fate of cannabis-related bills as they crossed Governor Newsom's desk. A leader of California's Blue Ribbon Commission on Marijuana Policy and a strong proponent of Prop 64, Newsom has...

As with any other industry, owners of licensed cannabis businesses often determine that their limited time and resources require utilizing the services of an experienced third-party management company to maximize the profitability of a business.  This is particularly true when owners decide to ex...

Written by Caroline Gill While the legislative process continues to mold and direct cannabis regulation (you can read more about the Cannabis bills in Sacramento here), it is also worthwhile to take stock of which hemp and CBD regulatory measures are headed towards Newsom's desk and which meas...

As California struggles with the woes of the illicit cannabis market - we've all come to realize - with regulation - comes great responsibility! To address the ongoing threat to the legitimacy of the regulated cannabis market, both the public and private sectors are on the attack.   California...

This past Friday the 13th marked the last night of session for the California Legislature. As expected, it was a busy time for elected officials, advocacy groups, and other interested parties in the cannabis industry as they tried to either push bills through to the Governor's desk or get them am...

After taking a few weeks off to visit their constituents back in their districts, California legislators are back in Sacramento to tackle the last few weeks of the legislative session. All bills must be passed by both houses by September 13 in order to have a chance of getting signed by Governor ...

A lot is moving forward in the LA Cannabis world for all verticals and Phase 3 is dangerously close and it looks like it's going to be quite the competition. Phase 3 Procedures and Application Guidelines In preparation for the highly anticipated Phase 3, the Los Angeles Department of Cannabis...

By Abraham Finberg CPA and Simon Menkes CPA As most people in the industry already know, due to Internal Revenue Code (IRC) 280E, cannabis businesses may only reduce their income with cost of goods sold (the cost of the product) to lower gross profit and save on taxes.  Most tax planning invol...