Jul 6, 2018 | California Marijuana Laws, Proposed MMJ Law Changes
Since January 1, 2018, the California cannabis industry has been running in the semi-regulated mode to allow time to comply with regulations. That period of grace ended on 1 July 2018, meaning the full force of the law applies. This means licensed retailers may now only sell cannabis products that meet the requirements set by the California Department of Public Health for ingredients, or appearance.
There are bound to be a few old timers in the Bureau of Cannabis Control who are sticklers for detail. Hence, we judged it wise to summarize the situation now in force.
Laboratory Testing Is Now Mandatory
A licensed dealer may only sell cannabis goods that passed all legal and regulatory standards in a licensed laboratory. This applies retrospectively to old stock. If you have merchandise you acquired before 1 July 2018, you must destroy it. The law prohibits you from having it tested now.
However, if you are holding disqualified consignment stock you may return it to your supplier. In terms of the convoluted set of rules, the supplier may send the stock on to the manufacturer, and they may then ask a laboratory to test it. As Charles Dickens wrote into Mr. Brumble’s role, “the law is an ass” but a remarkably persistent one we add!
Packaging and Labeling Requirements
The Bureau of Cannabis Control requires all cannabis goods to have appropriate labels before they reach retailers. The latter must, therefore, refuse any erroneously labeled or non-labeled consignments. Furthermore, “A retailer shall not package or label cannabis goods, even if the cannabis goods were in inventory before July 1, 2018”. (more…)
Feb 4, 2018 | California Marijuana Laws
Back in 2013, AG James Cole drafted a memo advising law enforcement and prosecution to back off from harassing marijuana users. This was after Colorado and Washington went legal with adult cannabis. At that time, he effectively told them to leave adults puffing a quiet joint at home alone.
This was not a major break with tradition. In 2009, AG David Ogden directed U.S. attorneys “not to focus federal resources in your states on individuals whose actions are in clear and unambiguous compliance with existing laws providing for the medical use of marijuana.”
However, it still came as little surprise when current AG Jeff Sessions unpicked Janes Cole’s wise words on January 4, 2018. While he appears to have stopped short of calling for a crackdown, CNN cites him describing the action as a return to the rule of law. Specifically, he directed federal prosecutors as follows:
“In deciding which marijuana activities to prosecute under these laws with the department’s finite resources, prosecutors should follow the well-established principles that govern all federal prosecutions. (more…)
Oct 3, 2017 | Proposed MMJ Law Changes
Things are indeed developing rapidly for Californian lovers of marijuana. In our last post, we thrilled with news of the Tax Guide for Cannabis Business hot off the press. Or should we say newly released in cyber space. Whatever the case, the cause is moving forward regardless of activities afoot in the U.S. Department of Justice.
This week, the California Bureau of Cannabis Control announced plans for interim commercial cannabis licenses effective 1 January 2018. We note these are under the Medicinal and Adult Use Cannabis Regulation and Safety Act AKA MAUCRSA. Hence, we are still waiting for news of plans for cultivator and manufacturer licenses that will follow.
In mid-November, we expect the California Bureau of Cannabis Control to start accepting applications for commercial cannabis licenses. These will permit legitimate operations to commence on 1 January 2018, and continue for 120 days. During this period, commercial operators must apply for regular state licenses, and be able to provide the information we list below. If a situation beyond their control prevents this happening, they may apply for an extension(s). (more…)
Sep 20, 2017 | California Marijuana Laws
The California Department of Tax and Fee Administration has published general information relating to sales and use tax laws, cannabis tax law, and other programs. While these are broad brushstrokes, there are copious links to rules for specific regulations, making it a comprehensive, well-presented digital document.
The Tax Guide for Cannabis Business does not address regulations contained in other state and local laws. A touch of wry humor shines through the comment “for the Federal Government’s guidance regarding marijuana enforcement, refer to the U.S. Department of Justice website” with a link provided.
The General Layout of the Guide
The main index tabs relate to filing returns, making payments, taxes & fees, forms & publications, permits & licenses, tax rates, and knowing your rights. The getting started section provides essential information concerning registration, returns filing, account maintenance, and other related topics.
There are separate sections for cultivators, manufacturers, distributors, and retailers, plus a resources section that takes the reader to publications, special notices, statutory and regulatory information, web-based seminars, and access to help from customer service representatives. (more…)
Aug 29, 2017 | California Marijuana Laws
While folk from liberal societies could think it’s most peculiar, in California the new normal is commercial banks don’t accept marijuana deposits. A sane person might have thought this was a handy source of funds. Moreover, the IRS might find some useful information when chasing for undeclared money.
How We Came Into This Situation
Under Federal law the cultivation, transportation, sale, possession, and consumption of marijuana is a felony because the U.S. Food and Drug Administration lists it as a Schedule 1 substance with ‘no accepted medical use and a high potential for abuse’. This was not always the case though until 1970.
Around 1840, doctors decided Cannabis had medical value, and pharmacies sold it freely until the passing of the 1937 Marijuana Tax Act. This taxed the product until repeal the following year. Some folk believed the Act was a countermeasure by timber farmers because cheaper marijuana bark was threatening their business interests.
Things came to another crunch in 1970 with the passing of the Controlled Substances Act. Reasons for outlawing marijuana were (a) high potential for abuse, (b) no currently accepted medical use, and (c) lack of accepted safety for use under medical supervision. Unbelievably, on December 1, 1975, the Supreme Court ruled it was ‘not cruel or unusual for Ohio to sentence someone to 20 years for having or selling cannabis.’ (more…)
Jun 23, 2017 | California Marijuana Laws
Having two systems for regulating medical and recreational marijuana in California has complicated licensing. To recap, the Medical Cannabis Regulation and Safety Act MCRSA was put in place to manage medicine. While the Control, Regulate, and Tax Adult Use of Marijuana Act AUMA that followed later focuses on recreational use.
This had been holding up the rules for licensing the recreational supply chain. Those problems thankfully belong to the past, now the California Senate has adopted the new hybrid Medicinal and Adult-Use Cannabis Regulation and Safety Act MAUCRSA. This repeals the MCRSA, while incorporating some of its provisions in this updated version of the AUMA.
We have more than a new acronym however to learn, since the changes are significant for California marijuana providers. In summary form: (more…)
