Rogoway Law Blog

Selecting the Right Insurance for Your Cannabis Business

California cannabis licensees face a lot of risks, from business competition to regulatory uncertainty, to unforeseen disasters and lawsuits of all types. Cannabis companies can act to protect themselves from certain risk by obtaining specific types of insurance. State-Mandated Insurance Requirements for Cannabis Businesses While the state’s governing statute for commercial cannabis activity, MAUCRSA, does … Continued

Labor Peace Agreements for Cannabis Businesses in California: Why Some Say the Law is “Siding Union”

Those thinking about operating a cannabis business in California may be surprised to learn they might need to enter into a legally binding “labor peace agreement” with a union in order to receive a license to operate. Cal. Bus. & Prof. Code § 26051.5(a)(5)(A); 16 CCR § 5002 (Bureau of Cannabis Control); 17 CCR § 40128(b)(2)(Dept. of Public … Continued

Converting Mutual Benefit Corporations into For-Profit Corporations

Over the past few months, many cannabis collectives organized as non-profit mutual benefit corporations under prior law, such as the 2004 Medical Marijuana Program Act, have asked us to help them convert into for-profit general share corporations (C Corps.). This isn’t surprising because the laws have changed and because cannabis operators wanting to attract new-money … Continued

BCC’s On-Site Security Guard Requirement for Cannabis Retailers: A Discussion

As the cannabis community is well aware by now, the regulations released by the various agencies regulating commercial cannabis businesses are vast and detailed. While the regulations are publicly available on the CalCannabis, Office of Manufactured Cannabis Safety, and Bureau of Cannabis Control websites, some of the operating requirements for cannabis operators are still somewhat … Continued

On-Site Cannabis Consumption at Cannabis Retail Premises

Though the Bureau of Cannabis Control’s Regulations do not mention any restriction of on-site cannabis consumption, the text of the Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) does. MAUCRSA states that “a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of … Continued

San Francisco Is On Deck for Permanent Cannabis Business Permits

The San Francisco Office of Cannabis is getting ready to release Part 1 of its Permanent Cannabis Business Permit Application. While this is an exciting time for cannabis business operators in San Francisco, there are limits to who can apply for a Permanent Cannabis Business Permit. The following individuals/businesses are eligible to apply for Permanent … Continued

Promising Advancements in Federal Cannabis Policy

While cannabis remains a Schedule I controlled substance under federal law, 4 recent events at the national level point to growing support to allow states to determine their own legal cannabis regimes without federal interference. 1) Congress Extends the Rohrbacher-Blumenauer Amendment in the Federal Omnibus Spending Bill In late March, Congress passed and President Trump … Continued

Trump Agrees to Support Federalism and Cannabis Industry!

On Friday, April 13, news broke that President Trump will not challenge states that have legalized cannabis according to Colorado (GOP) Sen. Cory Gardner. This development came about during a private conversation between the President and Sen. Gardner where the President promised that the Department of Justice would not crack down on state-legal cannabis industry … Continued

Cannabis Valuations: Canada & California

A practical guide to establishing valuation Over the last 12 months one of the most frequent questions we get at Bowman/Hanson is; why are the Canadian companies valued so high? The follow up question is “since there are very few industry “comps”, isn’t it reasonable to apply Canadian valuations to my US cannabis business?” This … Continued

New “Type S” License Information Released by the California Department of Public Health’s Manufactured Cannabis Safety Branch

On March 23, 2018, the California Department of Public Health’s Manufactured Cannabis Safety Branch released proposed emergency regulations that would allow cannabis manufacturers to utilize “shared-use facilities”. The emergency regulations for “shared-use facilities” were expected to be filed with the Office of Administrative Law on April 3, 2018 and are expected to take effect on April … Continued

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