In January 2020, Governor Newsom announced that he intended to have the Bureau of Cannabis Control (BCC), California Department of Food and Agriculture’s CalCannabis Program (CDFA), and California Department of Public Health’s Manufactured Cannabis Safety Branch (CDPH), consolidated into a single cannabis agency: the Department of Cannabis Control (DCC) (as summarized in the Governor’s 2021
Back in January, I published the first part of this article, which, not surprisingly, is all about how bad the law is getting for hemp CBD vape companies. Since then, things have, also not surprisingly, gotten even worse. Let’s just jump right into it and see what’s happening. First off, California recently proposed a law
For better or worse, the Safe Drinking Water and Toxic Enforcement Act of 1986 (a/k/a Prop. 65) has long plagued California businesses. And cannabis businesses are no exception (see here and here). Prop. 65 requires businesses to provide “a clear and reasonable warning before they cause an exposure to a chemical listed as known to
Last year, I wrote a post entitled “Cannabis Leases: Eight Important Tenant Considerations“. The post outlined eight of the more important considerations for tenants entering into cannabis leases. Today, I want to focus on some of the top considerations for landlords in leasing to cannabis tenants. 1. Compliance with Mortgages Landlords that do not outright
It’s no secret that California has a massive cannabis illicit market, despite the fact that it is perfectly legal (under state law) to sell cannabis if a business goes through the licensing process and complies with state and local laws. However, since the passage of the Medicinal and Adult-Use Cannabis Regulation Act (MAUCRSA), and the
In almost every litigation webinar we’ve done, and in many of our past posts discussing breach of contract (the general breakdown of this claim is here), we’ve stressed the importance of memorializing agreements in writing to save yourself from potential or protracted litigation down the line. Unfortunately though, we still get quite a few prospective
California’s cannabis regime is set up to separate every point in the supply chain into different license types: cultivation, manufacturing, distribution, testing and retail sales, to name a few. Except for a few vertically integrated companies, virtually all cannabis businesses must rely on other companies in the supply chain to get products from farm to
I will continue publishing a series of posts identifying common issues with cannabis supply chain contracts in California over the next few months. If you haven’t already read earlier articles on this topic, I suggest you start with the following: California Cannabis Supply Chain Contracts: Inspection and Rejection Top Four Concerns for Tri-Party Cannabis Supply
A few weeks back, I wrote a post entitled “California Tries Again with CBD“, in which I discussed a new piece of legislation (AB-45) introduced to ostensibly provide a regulatory framework for the manufacture and sale of certain hemp-derived products. Those products include foods or beverages that contain cannabidiol (CBD). In that post, I mentioned
Our cannabis business attorneys have drafted many cannabis supply chain agreements (such as distribution agreements, licensing agreements, etc.) over the years. Generally, supply chain cannabis contracts follow the same format and the same nuanced provisions seem to pop up time and time again (I wrote about some of them previously in the context of tri-party
