California has had laws on its books since 1996 allowing marijuana use for medical reasons, however, it has failed to adopt any regulations for the state and local licensing of marijuana cultivations and dispensaries. After seeing states like Colorado and Washington reap millions in taxes, California has finally developed new regulations. Today, California law makers
Pesticides Continue to be a Problem for the Marijuana Industry
By Steve Levine on
Posted in General Industry
Not only do marijuana centers in Colorado need to be worried about MED inspection of pesticides used in cultivation, but they should be on the look-out for investigative exposes being conducted by journalists. The Denver Post has alleged that MED prohibited pesticides are still being found in marijuana products sold in Denver.
For those of…
New Rules Proposed by MED for Public Comment
By Marshall Custer on
Posted in Government and Policy Trends, Regulatory Issues
As a last minute reminder, the MED has posted newly revised medical and retail rules for public comment. The proposed rules cover a wide range of topics, though the largest changes are related to the following:
- Process and qualifications for Permitted Economic Interests (see the 200-series in both medical and retail rules);
- Plant counts, including
…
10th Circuit Rules Bankruptcy Code Does Not Protect Marijuana Businesses
The 10th Circuit court ruled on August 21, 2015, that neither Chapter 7 nor 13 is available to a marijuana business owner. The court stated that because of “the federally illegal marijuana based income stream, the debtors cannot fund a plan without breaking the law, and are therefore ineligible for relief under Chapter 13.”…
New Class of Marijuana Ownership: Permitted Economic Interest
By Marshall Custer on
Posted in Banking, General Industry
Colorado recently modified its marijuana establishment ownership laws by creating a new class of ownership called the Permitted Economic Interest (PEI). As a result of this change, the Colorado Marijuana Enforcement Division will be promulgating new rules for individuals that wish to invest or loan money to licensed marijuana establishments through the issuance of convertible…
Section 280E – The Downfall of the Cannabis Industry?
By Steve Levine on
Posted in General Industry
We are all aware that a state-legal marijuana business is illegal under federal law and cannabis businesses deal with this dichotomy between state and federal law on a daily basis. Unfortunately, the fact that a cannabis business is federally illegal does not alleviate the obligation to pay federal income tax because the tax code does…
DO NOT Solicit Investment For Your Cannabis Business Like This!
By Steve Levine on
Posted in General Industry, Regulatory Issues
On July 17, 2015, a Colorado man was ordered to cease and desist from soliciting investors for his cannabis business on Craigslist. A sale of securities must be registered at the state or federal level unless one can rely on an exemption from both the state and federal securities laws. One needs to not only…
FDA’s CBD Actions and the Potential Effects on the CBD Market
By Steve Levine on
Posted in General Industry, Regulatory Issues
As many in the marijuana and hemp industry are aware, the Food and Drug Administration (FDA) has recently turned its focus on cannabidiol (CBD). In 2015 alone, the FDA has sent 7 warning letters to companies that are currently marketing CBD in various forms as a dietary supplement. While some in the hemp CBD market…
Colorado Supreme Court: Employers Can Discharge Workers Using Medical Marijuana
By Chris Ottele & Carrie Claiborne on
Posted in General Industry, Industry Trends
On June 15, 2015, the Colorado Supreme Court unanimously held that Colorado’s Lawful Off-Duty Activities Statute does not protect employees from discharge for using medical marijuana away from work. In a highly anticipated decision, Coats v Dish Network, LLC, No. 13SC394, the Colorado Supreme Court ruled that the plain language of the statute that…