Industrywide Tax Issues Continue to Plague Licensed Operators in the City of Los Angeles
Cannabis operators in Los Angeles are currently facing one of the most challenging tax environments in the nation. Combined state and local taxes, comprising a 19% state excise tax, a 10% city cannabis business tax, and a 9.75% sales tax, push the effective tax rate on cannabis products to nearly 40%. This high tax burden, […]
Closing the Hemp Loophole: Congressional Proposals Target Intoxicating Cannabinoids
During the most recent legislative session, both the House and the Senate advanced proposals aimed at closing the so-called “hemp loophole.” This loophole stems from the 2018 Farm Bill, which defined hemp only by reference to one cannabinoid—delta-9 THC. By omitting other isomers and derivatives, the law inadvertently created a booming market for hemp-derived products […]
Mid-Year Federal Cannabis Policy Update: DEA Rescheduling, the Trump Administration & Proposed Legislation
DEA Rescheduling Hearing Postponed Indefinitely As we’ve previously discussed, during President Biden’s term, he requested that his cabinet conduct an administrative review of cannabis’s classification under federal law. As required by the federal Controlled Substances Act (CSA), the U.S. Health and Human Services (“HHS”) then conducted its own medical and scientific analysis, and recommended that cannabis be moved […]
Mid-Year Update on the Los Angeles Cannabis Industry
The cannabis industry in Los Angeles is at a critical crossroads. As the California Department of Cannabis Control (DCC) phases out provisional licenses through 2025—requiring operators to transition to annual licenses—LA businesses are also grappling with a host of systemic issues at the local level. This article examines the broader industry frustrations within the LA cannabis industry […]
Mid-Year Update on California Cannabis Bills: Marijuana and Hemp
Three significant and somewhat overlapping cannabis bills are currently moving their way through the California legislature. Read below for a comprehensive update. Three bills, AB 564, AB 8, and SB 378 represent three distinct yet interrelated legislative approaches aimed at stabilizing and regulating California’s struggling cannabis and hemp industries. AB 564 seeks to provide immediate financial […]
What is THCA?
Tetrahydrocannabinolic acid (“THCA”) is a non-psychoactive cannabinoid that is found in all raw cannabis plants. THCA is the acid precursor to tetrahydrocannabinol (“THC”), the psychoactive component of cannabis, and is converted to THC through decarboxylation (heating). Historically, consumers use THCA, often raw in cannabis juice/smoothies, for health benefits, including as an anti-nausea, anti-inflammatory and anti-seizure […]
The Evolving Landscape of Hemp: Federal Uncertainty, California Crackdowns, and Nationwide Regulatory Shifts
While the future of federal marijuana rescheduling has been put on hold for the foreseeable future, federally legal hemp businesses continue to face a barrage of statewide restrictions. In this article, we explore the current state of hemp, taking a deep dive into the changes that are afoot within the Golden State and potentially, federally. […]
California 2025 Legislative Update
Proposed Cannabis, Hemp, and Psychedelic Legislation California’s current legislative session is now in full swing, bringing insight into the potential market shifts on the table for California’s cannabis, hemp, and psychedelic industries. February 21, 2025 was the deadline for lawmakers to introduce bills for the 2025 legislative cycle. No further legislation may now be proposed, […]
Los Angeles 2025 Licensing NEW Update
Additional DCR Fees Proposed, Licensing Opportunities, and Social Equity Extended With each new year, new regulatory and licensing changes impact the California cannabis industry. Recently, Los Angeles’ Department of Cannabis Regulation (DCR) has made several proposed policy changes that will impact the market in 2025. Below, we lay out these proposed policies, some of which will open […]
California Legalizes Cannabis Cafes, Creating New Market Opportunities
California Assembly Bill 1775 (AB 1775), signed into law by Governor Newsom last fall, just went into effect on January 1, 2025. Assemblymember Matt Haney of San Francisco introduced AB 1775 with the goal of creating Amsterdam-style cannabis cafes, stating, “Lots of people want to enjoy legal cannabis in the company of others…and many people want to do that […]