Legally-Blunt is a Manzuri Law Publication that focuses on cutting-edge legal issues and is part of our educational mission.
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...
As you may know, California has contracted with Metrc (Marijuana Enforcement Tracking Reporting Compliance) as the state's track-and-trace system for purposes of tracking commercial cannabis activity from "seed-to-sale". Since contracting with Metrc in 2017, the State and its operators have bee...
As American citizens, it is our civic duty to educate ourselves and participate in our democracy. With 20+ Democratic presidential candidates, Manzuri Law knows firsthand just how difficult choosing a candidate is. We will be updating you as the race to 2020 continues in hopes of helping cannab...
In The Art of Selling a Cannabis Business, we covered how to address some of the hurdles involved in selling a cannabis business. Arguably the single most important hurdle is complying with “change of ownership” rules. Navigating the convoluted “change of ownership” rules under the Bureau of C...
The U.S. imports about $800 million worth of hemp to be used for its fiber, seed, and oil. Other countries are already using industrial hemp to make a variety of products, including insulation, energy-efficient construction materials, durable fabrics, plaster, plastic, and flooring. Among the big...
Trailer bills, or legislation that helps implement the budget, are yet another vehicle for shaping the rules governing California's evolving cannabis industry. AB 97, this year's cannabis trailer bill, was approved by the Governor on July 1, fast-tracking a slew of policy changes and programs for...
California recently passed a $215 billion budget for the 2019-20 fiscal year. Not only did this afford the Legislature the opportunity to move around monies to fund and support various projects, but it also gave them a chance to tweak existing laws that are meant to implement the budget, includin...
CBD, or cannabidiol, is common, especially on the West Coast. CBD is also an ingredient in Epidiolex, the one Food and Drug Administration (FDA) approved pharmaceutical containing CBD on the market in the United States. The FDA has long maintained that CBD is legal only in an Epidiolex-type s...
“By failing to prepare, you are preparing to fail.” Benjamin Franklin Selling a licensed cannabis business is by no means a simple feat - it's a science and an art. Due to the industry's legal and regulatory baggage, the process of selling a cannabis business can be difficult and challen...
Written By Simon Menkes CPA and Abraham Finberg CPA When we meet non-cannabis people at Hollywood parties and they find out the industry we serve, their reactions are pretty typical: “Do you get free weed?” and “Can you explain that 280E law? It's so confusing!” While we just smile at the f...
Written by Kristen Abajian Welcome to a murky new movement to bring psychedelics out of the shadows and into a medical and research forefront. This movement aims to decriminalize psilocybin, otherwise known as the “magic” in magic mushrooms. What is psilocybin? Psilocybin is the main ingre...
California policymakers have several time-sensitive decisions on their plate regarding the cannabis industry. Surviving state license backlogs, navigating tax burdens, and reducing barriers to local licensure are just a handful of the biggest concerns facing cannabusinesses, and as we reach the...
There's no such thing as a “basic” cannabis contract -- and commercial cannabis leases are no exception. Unlike with standard commercial leases, cannabis landlords and tenants must navigate the inconsistencies (indeed, outright conflict) between federal and state law, the complexities of state...
Since last month's update, there have been several meetings where LA City Council and DCR discussed the different possibilities and processes for the upcoming Phase 3. After much debate and public input, the city has released final ordinances which you can read here and here. In addition, there...
By Abraham Finberg CPA and Simon Menkes CPA “A long time ago, in a galaxy far, far away …” It is a time of civil war, and the REBEL CANNABIS BUSINESS OWNERS are fighting battles on all fronts with the STORMTROOPERS from the federal, state, and local TAX AUTHORITIES. This article is about one su...
Legalizing hemp is one thing, regulating the hemp industry is another. The 2018 Farm Bill explicitly legalized hemp production in the U.S., but transporting it across state lines is still questionable. In fact, the Farm Bill makes it clear that regulations for the hemp industry must be determi...