Recently, numerous clients have come to us about issues with cannabis payment plans and the California Department of Tax and Fee Administration (“CDTFA“). Recall, there was a time in California (not that long ago) where certain cannabis companies threatened to just not pay their taxes because they believed the tax rate was too high. In
California’s Department of Cannabis Control (DCC) is the state’s primary cannabis regulatory authority. DCC’s predecessor agencies often gave several days’ advance notice before an inspection. Since its formation, DCC has taken a vastly different – and more aggressive – approach to cannabis inspections. Our California cannabis team is now seeing drop-in, no notice DCC inspections
Conditional Adult Use Retail Dispensary (“CAURD”) license applicants and those applicants seeking unconditional licenses in New York must comply with the New York State mandate and enter into, maintain and comply with a Labor Peace Agreement (“LPA”) with a bona-fide labor union. However, an LPA is not required to apply for a CAURD license, but
Proposition 65 cannabis regulations are no joke, and they continue to change. For better or worse, the Safe Drinking Water and Toxic Enforcement Act of 1986 (a/k/a Prop. 65) has long plagued California businesses. Cannabis businesses are no exception (see here and here). Prop. 65 requires businesses to provide “a clear and reasonable warning before they cause
Published in Law360 on August 30, 2022. © Copyright 2022, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission. A recently filed cannabis case in Oregon, Drops LLC v. La Mota LLC, demonstrates pleading of two forms of the alter ego theory of liability. Most lawyers and business owners know that one of the
Around this time last year, my colleague, Jesse Mondry, wrote about a District of Colorado case, entitled Sensoria, LLC et al. v. Kaweske, et al. , which involved a group of plaintiffs who sought to recover their investment in a cannabis business, Clover Top Holdings. The underlying set of facts involve an all-too-familiar cannabis investment
I’m guilty of dunking on the Federal Trade Commission (FTC) in the past for not doing more to protect cannabis consumers, despite the current federal illegality of cannabis. That may be changing, at least with respect to CBD consumers. Before diving into this latest development, I should mention that historically, cannabis is treated differently from
Last summer, the Massachusetts based retailer Curaleaf mistakenly mixed-up THC with CBD at a bottling plant in Portland. Approximately 1,500 mislabeled bottles containing what the Oregonian describes as a “jumbo” dose of THC were shipped under the brand name Select and sold as containing only CBD. Although many of the bottles were recalled at the
The New York Police Department (“NYPD”) crackdown on unlicensed cannabis sales comes as New York is poised to start awarding Conditional Adult Use Retail Dispensary (“CAURD”) licenses in the coming weeks. The Office of Cannabis Management (“OCM”) has stated on numerous occasions that those caught selling cannabis without a CAURD license, or a medical license,
In all of the news about New York’s Office of Cannabis Management (OCM) starting to accept applications for Conditional Adult-Use Retail Dispensary (CAURD) license applications, one glaring piece of information was missing: will the OCM review applications on a rolling basis starting on August 25, 2022? Or, will OCM review applications all together when the
