Legal Insights

Tax Cuts and Jobs Act for Cannabis Businesses
Joe Rogoway

Tax Cuts & Jobs Act – First Thoughts

Earlier today, the Conference Com. approved five hundred and three (503) pages of amendments to the Internal Revenue Code. This should soon become law, with many provisions effective in sixteen days. Most important to our business: 280E Congress made zero (0) changes to Section 280E. Cannabis companies are still forbidden to make common business deductions, forcing them to pay tax on a

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Rogoway Law Group

Important Environmental Requirements for California Cultivators

CalCannabis anticipates that it will start issuing state cannabis cultivation licenses — both temporary and annual — on January 1, 2018. Applications are not yet available, but will be soon. Before applying for a state cultivation license, there are two things you must do to ensure compliance with environmental regulations pertaining to water use and discharge: all cultivators — regardless

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Cannabis Business Laws in Los Angeles, Califonia
Joe Rogoway

Los Angeles Has Cannabis Laws (Finally)

LA City Council Passed Cannabis Ordinance & Regulations on Dec. 6, 2017* First, here’s the Ordinance (Sec. 104) and the implementing Regulations. These two docs regulate cannabis businesses in LA. We’re beginning to digest these and will post commentary soon. In the mean time, everyone should start thinking about the Zoning Ordinance (Sec 105). Zoning determines whether your business can operate at a

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Prop. 65 And Cannabis Businesses In California
Joe Rogoway

What is Prop. 65 and Why Should Cannabis Businesses in California Care About it?

California’s Proposition 65 is a law passed by voters in 1986. It requires businesses to provide a “clear and reasonable warning” when they expose consumers to chemicals known to cause cancer, birth defects, or other reproductive harm. Violating Prop 65’s warning requirement can lead to penalties as high as $2,500 per day. The Office of Environmental Health Hazard Assessment adopted

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Rogoway Law Group

October 31 Deadline Approaching! Apply for a Surface Water Right with the State Water Resources Control Board

Cannabis cultivators must identify their water source(s) as part of their CalCannabis application(s) to obtain a state license. The deadline to submit an application to the State Water Resources Control Board (“Water Board”) to obtain a surface water right for cannabis cultivation is October 31, 2017. This deadline was extended from the original July 1, 2017 deadline in the Medicinal and Adult-Use Cannabis Regulation

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Rogoway Law Group

California Department of Food and Agriculture Releases Proposed Cultivation and Tracking Regs

On April 28, 2017, the California Department of Food and Agriculture released proposed regulations to establish cannabis cultivation licensing and a track-and-trace program. The proposed regulations define the cannabis cultivation licensing process and triggers a 45-day public comment period. The last day to submit written comment to the Department is June 12, 2017. However, those who wish to be heard can also attend

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Rogoway Law Group

California Bureau of Marijuana Control Releases Proposed Text of Regulations

On April 28, 2017 the Bureau of Marijuana Control released its first set of proposed regulations. The release of regulations triggers the requirement for the Bureau to hold hearings at which the public can comment on the regulations. Those who wish to make oral comment on the proposed regulations may do so by attending one of the four scheduled hearings. Hearing details are listed below: June

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“Surge Strategy” on Hold: LA Considers Ending the “Whack-a-Mole” Game Against Marijuana Dispensaries

On April 17, the Los Angeles County Counsel presented to the Board of Supervisors a report addressing the dozens of illegal dispensaries in unincorporated Los Angeles County. The report relayed the Medical Marijuana Dispensary Enforcement Team’s (“MMDET”) recommended approach: a “surge strategy” aiming to close all such dispensaries. On April 19, however, the Board of Supervisors opted not to fund

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Attorney General Watch: Marijuana and the “Task Force on Crime Reduction”

AG Jeff Sessions created a Task Force on Crime Reduction. One of its subcommittees has a charge related to cannabis: “Task Force subcommittees will also undertake a review of existing policies in the areas of charging, sentencing, and marijuana to ensure consistency with the Department’s overall strategy on reducing violent crime and with Administration goals and priorities.” Task Force members

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Governor Proposes Bill to Remove Restrictions on Vertical Integration in the Medical Cannabis Industry

As part of the 2017-2018 budget process, the Governor has unveiled “budget trailer bill legislation”: the “Medicinal and Adult-Use Cannabis Regulation and Safety Act.” This legislation would merge the state’s regulatory scheme for medicinal and recreational cannabis. Most notably, it would remove restrictions on vertical integration in the medical cannabis industry. The “Medical and Adult-Use Cannabis Regulation and Safety Act” would Consolidate California’s Medical

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