New State Cannabis Department Comes With New Rules. Spoiler Alert: Not Everyone Is Happy.
California has finally ridden itself of its three-headed cannabis beast and replaced its multiple regulatory authorities with the single Department of Cannabis Control (DCC). Led by the newly appointed director, Nicole Elliot – former cannabis advisor to Governor Newsom – the DCC will be responsible for state licensing and enforcement for commercial cannabis activity. One […]
9 Key Takeaways From LA’s Newest Ordinance Amendments
On June 22, 2021, Los Angeles City Council adopted an ordinance replete with substantive amendments to the City’s Cannabis Procedures Ordinance. Assuming that the Mayor signs this into law, there are several new rules for LA you should know about. The Ordinance Amendments are quite comprehensive and aim to refine sections of the ordinance, provide […]
Fiduciary Duties to the Corporation and Minority Shareholders
Corporate decision-making authority can be held in several ways, depending on the specific provisions of the company’s governing documents, whether that be a shareholders agreement for a corporation, an operating agreement for an LLC, or another agreement. In corporations, there are generally three groups of individuals that make decisions: the shareholders, the directors and the […]
Hemp & CBD in Food, Drugs and Cosmetics – Federal and CA Landscape
Although California has legalized cannabis despite federal illegality, on the issue of hemp-derived foods, current state law conforms to federal law. And under federal law, most hemp derivatives are currently not permitted as food additives for several reasons. Hemp in Food, Drugs and Cosmetics under Federal Law One reason is the “drug exclusion rule”, of […]
California Flush With Cash But Bill Limits May Dampen Progress
May brought a rush of activity for cannabis policy in Sacramento. The Administration published its May revision of the Governor’s Proposed Budget, the state Cannabis Advisory Committee met several times, and the Appropriations Committees in both houses of the Legislature held their notorious suspense hearings, during which several bills were killed or forced to be […]
Legislative Update: Wins and Losses as First House Deadline Approaches
The end of April marks the deadline for policy committees to hear all legislation identified as having a fiscal impact on the state (which includes most bills). If bills are not heard by then, they are automatically turned into two-year bills and are stuck in their existing location until next year. With the Legislature forced […]
5 Corporate Governance Pitfalls in Cannabis Companies
Corporate documents for cannabis companies need to be carefully drafted and tailored for the unique aspects of the industry. Template documents that are found online or taken from other companies may have some useful provisions, but should not be wholly relied upon to suit the particular needs of a cannabis business. In particular, a few […]
New York Cannabis – The Marijuana Regulation & Taxation Act
Guest Author: Alexis Lazzeri, Esq. I. The Legalization of Cannabis in New York Will Have A Far Reaching Impact. On March 31, 2021, New York Governor Andrew Cuomo signed the Marijuana Regulation and Taxation Act into law. This immediately legalized adult-use and possession of up to three ounces of cannabis, or up to 24 grams […]
Cannabis Banking Catastrophe – Two Eaze Consultants’ Convictions Have Deep Implications for the Industry
Guest Author: Alexis Lazzeri, Esq. Eaze Consultant Convictions: A “Clear Criminal Conspiracy.”1 As long as cannabis remains federally illegal, licensed cannabis businesses are forced to operate outside of the mainstream FDIC insured banking system. This delegation to the financial shadows remains a well known liability, physically and financially, for cannabis companies operating in cash and […]
Cannabis, the Constitution and a Path to a National Market
Although cannabis is illegal at the federal level, it has been legalized in an increasing number of states in recent years, and is currently legal for either medical or recreational use in 36 states. However, although cannabis is legal in more than 2/3 of states, every state that has legalized cannabis has prohibited both importing […]