Tag Archives: california cannabis

Jennifer Fisher and Justin Santarosa

California Department of Public Health’s Re-Adopted Emergency Regulations

The California Department of Public Health (CDPH) is the state agency designated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) as responsible for regulating cannabis manufacturing.

The CDPH issued emergency regulations for manufacturers in November 2017, and has now proposed readopting those regulations for another 180 days. Based on feedback from the public and stakeholders in the industry, the CDPH has proposed some changes to these regulations.

This blog post will highlight the changes to the CDPH emergency regulations and identify key issues for manufacturers. In separate posts, we will be describing the changes made by the California Department of Food and Agriculture and the California Bureau of Cannabis Control.

Changes to Emergency Regulations:

  • The CDPH has removed the distinction of A and M Licenses and now only requires one application and applicants will only have to pay one licensing fee. Previously you had to submit two applications and pay two separate licensing fees if you wanted to operate in the medicinal and adult-use market.
  • The readopted regulations have now incorporated the previously released shared-use facility regulations, which allow a manufacturing premises to be used my multiple businesses that take turns utilizing the space and equipment. This allows for operations similar to a commercial kitchen or agreements in which larger manufacturers offer space and use of equipment to smaller manufacturers.
  • The CDPH has removed tinctures from the definition of a product containing more than 0.5% alcohol by volume. However, tinctures cannot be sold in a package larger than two fluid ounces and shall include a calibrated dropper or other measuring device

The change to only a single application for both medical and adult-use is a welcome change for manufacturing businesses. Overall, the CDPH did not make significant changes to its regulations.

If you have any questions about the regulations, please contact Jennifer Briggs Fisher in our San Francisco office or Justin Santarosa in our Los Angeles office.

 

Jennifer Fisher and Justin Santarosa

Bureau of Cannabis Control’s Re-Adopted Emergency Regulations

The Bureau of Cannabis Control is the state agency designated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) as responsible for issuing licenses to and regulating distributors, retailers, delivery-only retailers, microbusinesses, and testing labs.

The BCC issued emergency regulations in November 2017, and has now proposed readopting those regulations for another 180 days. Based on feedback from the public and stakeholders in the industry, the BCC has proposed some changes to these regulations.

This blog post will highlight the changes to the BCC emergency regulations and identify key issues for distributors, retailers, delivery-only retailers, microbusinesses, and testing labs. In separate posts, we will be describing the changes made by the California Department of Food and Agriculture and the California Department of Public Health. Those posts can be found here and here.

Changes to Emergency Regulations:

  • The BCC has removed the distinction of A and M Licenses and now only requires one application and applicants will only have to pay one licensing fee. Additionally, license fees have been reduced. Previously you had to submit two applications and pay two separate licensing fees if you wanted to operate in the medicinal and adult-use market.
  • A delivery employee may now complete multiple deliveries of cannabis goods if they are prepared by the retailer prior to the delivery employee leaving the licensed premises. The total amount of cannabis goods in the delivery vehicle may be up to $10,000, the previous limit was set at $3,000.
  • The definition of owner has been amended to specify that the chief executive officer and/or the members of the board of directors of any entity that own 20% or more of a commercial cannabis business will be considered “owners.”
  • The definition of financial interests has been amended to include “an agreement to receive a portion of the profits of a commercial cannabis business.” Commercial cannabis business and service providers will have to review their agreements and applications to determine if certain amendments will need to be made to include other people or businesses as having a “financial interest” in a commercial cannabis business. Interestingly, this change was not made in the definition of “financial interest” under the CDFA and CDPH regulations.
  • Retail stores may not sell or deliver cannabis goods through a drive-through or pass-out window and sales cannot be made to people within motor vehicles.
  • License applications must now include:
    • Cannabis waste procedures; and
    • Delivery procedures, if applicable.

These changes show that the BCC and the other regulatory agencies are being responsive to their stakeholders and while not all changes are positive, we believe this is a step in the right direction for cannabis businesses in California.If you have any questions about the regulations, please contact Jennifer Briggs Fisher in our San Francisco office or Justin Santarosa in our Los Angeles office.

Jennifer Fisher and Justin Santarosa

California’s Re-Adopted Emergency Regulations – What Cannabis Cultivators Need to Know

The California Department of Food and Agriculture (CDFA), through its CalCannabis Cultivation Licensing division, is the state agency designated under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) as responsible for issuing licenses to commercial cannabis cultivators in California.

The CDFA issued emergency regulations for cannabis cultivators in November 2017, and has now proposed readopting those regulations for another 180 days. Based on feedback from the public and stakeholders in the industry, the CDFA has proposed some changes to these regulations.

This blog post will highlight the changes to the CDFA emergency regulations and identify key issues for cannabis cultivators. In separate posts, we will be describing the changes made by the Bureau of Cannabis Control and the California Department of Public Health. Click here for those updates. Continue reading California’s Re-Adopted Emergency Regulations – What Cannabis Cultivators Need to Know

Recreational Cannabis for Sale in California

On January 1, 2018, hundreds of California residents lined up outside just licensed cannabis retail dispensaries to purchase newly legal recreational marijuana. The founder of Buddy’s dispensary in San Jose, which holds one of California’s first recreational marijuana licenses, described it as the busiest day in the dispensary’s history.   The California cannabis industry is projected to reach profits of $3.7 billion dollars in 2018 alone.  Projections indicate there could be up to 4 million consumers of recreational marijuana in California. This huge opportunity has many new entrepreneurs, including celebrities like Mike Tyson, pursuing the cannabis business.

Under the new law, Californians over the age of 21 can now possess up to an ounce of marijuana, eight grams of marijuana concentrate, and grow up to six plants at home for their personal use. While public consumption is still banned, the new framework gives recreational users new flexibility. Those on the business side of recreational cannabis, however, still have a lot to consider before diving into this new market.

This is especially true given the news today that Attorney General Jeff Sessions is rescinding an Obama-era directive discouraging enforcement of federal marijuana laws in states where cannabis is legal.  We will know more about how this decision will impact the California market after the announcement is officially made by AG Sessions later today.  For now, we will provide an update on the first week of recreational cannabis sales in California.

Continue reading Recreational Cannabis for Sale in California

Justin Santarosa

California’s Online Licensing System is Now Active

California took the next big step in establishing its legal cannabis market. It officially launched its online licensing system and is now accepting applications for commercial cannabis licenses for retailers, distributors, microbusinesses, testing laboratories and cannabis events.  The online system can be used by applicants to easily apply for a temporary and annual commercial cannabis license, submit payments and track the status of an existing application.

All business owners applying for a medical and/or adult use cannabis business license must be registered and have an active account on the licensing system. In addition, those individuals or companies that are considered “owners” of the applicant business  will need to register as well in order to submit the necessary information that is required to be disclosed by each “owner.”

The link to the online licensing system can be accessed here: http://online.bcc.ca.gov/.

Cultivators must apply for a cultivation license with the California Department of Food and Agriculture’s CalCannabis Cultivation Licensing program. CalCannabis expects to launch its online application process  later this month. The California Department of Public Health is currently accepting paper applications by mail or email for manufacturing licenses.

Jennifer Fisher and Justin Santarosa

What Distributors Need to Know About California’s Emergency Cannabis Regulations

On November 16, 2017, the California Bureau of Cannabis Control published emergency regulations governing both the medical and the adult-use cannabis industries in California. Below are the highlights of the emergency regulations and how they may impact distributors of cannabis products.

This post is the fourth in a series of entries on the Duane Morris Cannabis Industry blog that will provide an analysis of the new California emergency regulations. If you have any questions about the regulations, please contact Jennifer Briggs Fisher in our San Francisco office or Justin Santarosa in our Los Angeles office. Continue reading What Distributors Need to Know About California’s Emergency Cannabis Regulations

San Francisco Adopts New Rules for Recreational Cannabis

San Francisco Adopts New Rules for Recreational Cannabis

After months of debate and consideration, the San Francisco Board of Supervisors approved new regulations for recreational cannabis activity yesterday. The legislation will come back to the Board next week for a final vote and then will go to San Francisco Mayor Ed Lee to sign it into law. Highlights of the new regulations are outlined below.

Existing Medical Dispensaries Allowed to Sell Recreational Cannabis

Beginning on January 5, 2018, existing medical dispensaries and delivery services currently operating in San Francisco will be allowed to sell recreational cannabis. The existing cannabis dispensaries must obtain a temporary 120-day license in order to participate in recreational cannabis sales.

Continue reading San Francisco Adopts New Rules for Recreational Cannabis

Jennifer Fisher and Justin Santarosa

California Releases Emergency Cannabis Regulations

On November 16, 2017, California’s three cannabis licensing agencies published emergency regulations to govern both the medical and adult-use cannabis industry in California under the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) (Bus. & Prof. Code 26000 et seq.). The regulations published by the Bureau of Cannabis Control, the Department of Food and Agriculture and the Department of Public Health cover, among other things, cultivating, manufacturing, testing, growing, packaging and potency requirements.

Below are highlights of the emergency regulations. This post is the first in a series of entries on the Duane Morris Cannabis Industry blog that will provide an analysis of the new regulations. If you have any questions about the regulations, please contact Jennifer Briggs Fisher in our San Francisco office or Justin Santarosa in our Los Angeles office.  Continue reading California Releases Emergency Cannabis Regulations

David Feldman

Cannabis Company Buys Entire Town for Tourism

Phoenix based American Green Inc. is buying the entire town of Nipton, CA, all 120 acres of it. They want to turn the town into a cannabis tourism destination. Nipton, population 20, is a mere 60 miles from Las Vegas and about 3 hours from Los Angeles or, as the current owner described it as noted in the London Evening Standard, “conveniently located in the middle of nowhere.”

The company is paying $5 million for the town and plans on another $2.5 million to fix it up. Nipton started life in 1905 when the gold rush hit, and now ironically it is poised to capitalize on the “green rush” of cannabis. American Green President David Gwyther thinks cannabis legalization could change and revitalize communities.

Will this rival the cannabis tourism seen in Colorado and soon to hit places like Las Vegas? If they build a nice spa…