Khurshid Khoja

While the California Cannabis Industry Association (CCIA) is still evaluating the investigative report prepared by Paige St. John and Alex Halperin, and released by the Los Angeles Times, we are deeply concerned by any data that suggests consumer safety is at risk. "California has some of the most stringent cannabis standards in the nation, designed to protect consumer safety and public health. However, the state’s continued failure to enforce against those who fail to comply — both inside and outside of the regulated market — has put the credibility of the entire adult-use market in peril, and now threatens the very consumers we aim to serve. "Due to overly burdensome regulations, high taxes, and a lack of oversight, the state has inadvertently created an environment where bad actors feel compelled to cut corners to compete and survive. This undermines the integrity of the market and compromises consumer safety. "It is the explicit role of a regulator to establish and enforce standards that protect consumer safety. Compliant industries rely on these standards to guide their practices. Given the known safety risks associated with certain pesticides, we would expect the state to implement the strongest protections with which we can effectively comply. "It is equally important to recognize that the findings from this report, based on a limited sample from a few brands, do not represent the industry as a whole. Many reputable operators work tirelessly to ensure the safety of their products, often far exceeding California’s regulatory standards while pioneering innovation across the industry. The actions of a few should not tarnish the efforts of those who are committed to compliance and consumer safety. "CCIA has been calling on policymakers for years to take action to address the thriving illicit market and non-compliant licensees that threaten market integrity and put consumers in harm’s way. Effective policymaking must be accompanied by rigorous compliance and enforcement. We remain committed to collaborating with the governor, the legislature, and all stakeholders to improve enforcement mechanisms, uphold high standards, and ensure that consumers can trust the safety and quality of the legal cannabis products they purchase. #California #Cannabis #ConsumerSafety

20

1 Comment

The Latest on Cannabis Rescheduling: The DEA's Proposed Rule and the Supporting OLC Opinion Everyone is aware that cannabis rescheduling has been officially announced. But where are we in the administrative process? Here's a quick update: DEA's Proposed Rule: On May 21, 2024, the DEA published a proposed rule to reschedule marijuana, initiating a 60-day public comment period. OLC Opinion: On May 16, 2024, the DEA released an Office of Legal Counsel (OLC) opinion supporting the move to place marijuana in Schedule III. DEA’s Rulemaking Process: Initiation: Once formal rulemaking starts, the DEA can review additional medical and scientific data. Public Input: Public comments and hearings will influence the final decision. Please join in. Proposed Rule Specifics: Move to Schedule III: Marijuana (excluding hemp and synthetic THC) would be rescheduled from Schedule I to Schedule III. Synthetic THC: Remains in Schedule I. Comment Deadline: July 22, 2024 Support the Effort: Contact Vicente LLP for assistance with submitting comments.

11

2 Comments

The upcoming Benzinga California Cannabis Market Spotlight in Anaheim is set to address significant challenges and changes facing California's cannabis industry. Declining legal sales, marked by the lowest figures since 2020 at $1.2 billion, are primarily due to high taxes, strict regulations, and competition from an illicit market. Additionally, California faces potential policy changes like a proposed excise tax increase from 15% to 19% by 2025. To combat illegal operations, Governor Gavin Newsom's task force has seized over $61 million in unlicensed products and eradicated 62,000 plants in 2024. Upcoming legislation, Assembly Bill 2223, could further affect the market by integrating hemp and regulating synthetic cannabinoids. The event aims to offer a platform for industry leaders to discuss these issues, explore investment opportunities, and consider the impact of California’s cannabis policies on global markets. https://lnkd.in/gDT5CVha

2

📢New hemp product retail/wholesale license alert for Oregon📢 📝Relevant links on comments 🔵Effective 7/1/24 a "vendor" is required to obtain a license from OR Dep't of Ag 🟠Each vendor site must have this license prior to storing, transferring, or selling hemp products 🔵The license is required for online vendors that sell into or out of OR 🟠The license is annual and expires 6/30 each year 🔵The fee is $100 🟠The license is site specific - vendors need separate licenses for each vendor site 🔵There are a few exceptions which don't require this license - 1) If the person only facilitates the sale or transfer by connecting buyers and sellers and the person does not store the industrial hemp or hemp items at any time 2) A licensed grower, handler, or agricultural hemp seed producer is (with some notification requirements) 3) any sites licensed by OLCC 4) a person who only transports industrial hemp or hemp items and does not store the industrial hemp or hemp items at any time other than as necessary for transportation or delivery

18

3 Comments

Our own Hilary Bricken discusses #cannabisretailer licensing under the California Medicinal and Adult-Use Cannabis Regulation and Safety Act, along with related #regulatory provisions. In her article for Thomson Reuters Practical Law, Hilary addresses relevant federal law, key definitions under the California Act, the licensing process in California—including state and local disclosure requirements—and certain conduct prohibited for licensees in California. Read more (log-in may be required): https://lnkd.in/gNWHQ7Fs

9

𝐂𝐀𝐍𝐍𝐀𝐁𝐈𝐒 𝐔𝐏𝐃𝐀𝐓𝐄 Yesterday DEA announced it will propose that cannabis be reclassified from Schedule 1 to Schedule 3 of the CSA. What does this mean? Here's what Schedule 1 and Schedule 3 substances are and brief (and partial) notes on what DEA's announcement means and doesn't mean, what rescheduling would do and not do, and the path forward. 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝟏 𝐚𝐧𝐝 𝐒𝐜𝐡𝐞𝐝𝐮𝐥𝐞 𝟑 𝐬𝐮𝐛𝐬𝐭𝐚𝐧𝐜𝐞𝐬 Schedule 1 substances are substances with “High abuse potential with no accepted medical use” such as heroin. Schedule 3 substances have accepted medical value but are available legally only with a prescription.  𝐖𝐡𝐚𝐭 𝐭𝐡𝐞 𝐚𝐧𝐧𝐨𝐮𝐧𝐜𝐞𝐦𝐞𝐧𝐭 𝐦𝐞𝐚𝐧𝐬 𝐚𝐧𝐝 𝐝𝐨𝐞𝐬𝐧’𝐭 𝐦𝐞𝐚𝐧 1) DEA has accepted the prior determination by the Department of Health and Human Services that cannabis “has a currently accepted medical use in treatment in the United States” and has a “potential for abuse less than the drugs or other substances in Schedules 1 and 2”. 2) The announcement does not make cannabis federally legal. 3) The announcement does not expunge prior cannabis convictions. 𝐖𝐡𝐚𝐭 𝐫𝐞𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐢𝐧𝐠 𝐰𝐨𝐮𝐥𝐝 𝐝𝐨 1) Rescheduling would enable state-legal cannabis entities to take advantage of several federal tax deductions currently unavailable to them under IRS code section 280E, thereby significantly improve their profitability and financial health.  2) Rescheduling would facilitate greater cannabis research and development for therapeutic uses that is precluded with respect to Schedule 1 substances. 3) Rescheduling would likely require state-legal cannabis entities to comply with federal production, record-keeping, and prescribing requirements for Schedule 3 substances. 𝐖𝐡𝐚𝐭 𝐫𝐞𝐬𝐜𝐡𝐞𝐝𝐮𝐥𝐢𝐧𝐠 𝐰𝐨𝐮𝐥𝐝 𝐧𝐨𝐭 𝐝𝐨  1) Rescheduling would not make cannabis federally legal or enable state-licensed businesses to transact in interstate commerce. 2) Rescheduling would not expunge cannabis convictions.  3) Rescheduling would not necessarily facilitate banking services for cannabis entities. Other proposed federal reforms are being considered towards this end now. 𝐏𝐚𝐭𝐡 𝐅𝐨𝐫𝐰𝐚𝐫𝐝 1) State cannabis markets will likely be unaffected in the short to medium term.  2) The relief from 280E tax restrictions may spur additional interest in obtaining state cannabis licenses.  3) Timeline: the rescheduling process will take months. DEA's proposal will be reviewed by the White House Office of Management and Budget, there will be public notice and comment, and then review by an administrative judge. DEA will then publish the final rule in the Federal Register, and after a waiting period the new law would become effective, barring any legal challenges (which are likely to be made by stakeholders). Fast times. Stay tuned.

19

2 Comments

As we approach the end of the week, the urgency to protect the future of hemp in California remains high. Recent amendments to AB 2223 continue to pose a severe threat to our thriving hemp industry. If passed, these amendments would enforce restrictive THC potency limits, potentially capping hemp products at 0.25mg total THC per serving or 1mg total THC per package. Such stringent regulations could dismantle the full spectrum hemp industry, jeopardizing the progress we've fought so hard to achieve since the passage of AB 45. But fear not, because we have the power to make a difference. Let's come together once again to urge our legislators to oppose these harmful THC potency limits. Don't wait until it's too late. Take action today and ensure our voices are heard. Visit the link below to submit your letter and join the fight to protect California's hemp industry. https://lnkd.in/d4PjhSmw

3

1 Comment

Washington Provides Tax Break For Medical Cannabis Users, But Is It Enough?, read more on the latest from Benzinga by Rolando García Bernado. Features Aaron Pickus, Department of Health's Medical Cannabis Authorization. #Cannabis #CannabisNews #Washington #Tax #MedicalCannabis #BZCannabis.

6

Help Us Ensure Cannabis Rescheduling Happens If you're in the cannabis industry, understanding the benefits of rescheduling cannabis to Schedule III is crucial. Though it may seem out of our control, we can take concrete actions to push this forward. We're at a historic moment for cannabis reform and need your help. Current Status: The DOJ and HHS/FDA have proposed rescheduling cannabis to Schedule III, recognizing its medical value and lower abuse potential compared to Schedule I and II drugs. The DEA will review all public comments during a 60-day notice and comment period before making a final decision. Why This Matters: Opponents are well-funded and active in trying to keep cannabis in Schedule I. The federal record needs strong evidence to support the reclassification of cannabis. Three Ways You Can Help: 1. Comment The DEA is accepting public comments until July 22, 2024. This is your chance to provide impactful comments and evidence. Focus on cannabis' accepted medical use and low abuse potential. Share your experiences if you are a medical marijuana business, medical practitioner, patient, researcher, or reside in a state with legal medical cannabis. A comment template is available in the comments. 2. Connect If you know medical professionals willing to participate, please reach out. 3. Donate Support the engagement of qualified medical practitioners who can provide vital data by donating to the non-profit S3 Collective, which is organizing top physicians and compiling critical medical studies. Thanks to my Vicente LLP partner Shawn Hauser for her work on this.

13

1 Comment

Part of the sales pitch for buying legal weed is the promise of consumer safety. California even requires lab testing before a product can be offered for sale. Yet almost two dozen weed products tested for reporters at The Times and Weed Week showed high levels of pesticides, chemicals that even at small doses, over time can cause serious health effects. Most pesticides appeared at low levels where evidence of harm may not be known for years. The worst offenders were popular vape brands. How is that possible? California rarely checks products sold in stores. And even when it does, the state’s cannabis lab can’t screen for pesticides. That leaves public safety in the hands of private labs being paid for by the very companies whose products they test. In addition to this deep investigation, LA Times readers will find results of more than 150 weed tests, and a detailed look at the worst chemicals that turned up. Read the full investigation: https://lnkd.in/eAdBAj3J 

28

9 Comments

California's Department of Cannabis Control (DCC) and the Department of Public Health (CDPH) have significantly ramped up cannabis product recalls. In 2024 alone, at least 23 recalls have been issued, surpassing the total from the previous two years combined. This uptick is attributed to more stringent inspections and product testing. Notable Recalls: 🔴 Flower Products: DCC recalled products from BloomBox Flower and Pat's Flower due to contamination. 🔴 Hemp-Infused Sodas: Mary Jones sodas were recalled for containing prohibited delta-9 THC isolates. Enforcement and Compliance: The state is intensifying efforts to remove non-compliant products from shelves and educate the public on potential risks. Industry Impact: These developments underscore the importance of strict compliance with state regulations to ensure consumer safety and avoid costly enforcement actions. Read the news story: https://lnkd.in/e_VXKtTm #californiacannabis #retaildispensary #dispensaryregulations

4

In light of last week's exciting news, the Fire Business Strategies team simulated a ludicrous number of #Colorado #cannabis businesses to illustrate how #ScheduleIII and #280E reform could impact different business types. You can read a summary here. For a full report, including additional discussion of our methodology, detailed results, tables of all major assumptions and parameters used in our simulations, and pretty much all the graphs you could want, comment "Show me the math" "Math me" or your favorite math pun below!

3

California Lawmakers Greenlight Cannabis Cafe Bill Months after the governor vetoed an earlier proposal, California lawmakers have now approved a bill allowing cannabis cafes in the state. Sponsored by Assemblymember Matt Haney, the legislation permits on-site marijuana consumption at licensed businesses, which can also serve non-cannabis food and non-alcoholic drinks and host live events with local government permission. Governor Gavin Newsom had previously vetoed a similar bill citing concerns about workplace protections, but Haney and supporters have revised the legislation to address these worries. They argue that supporting legal small businesses is crucial in curbing the thriving illicit market while bolstering the struggling legal cannabis industry. Full Article: https://buff.ly/3R4b93n #CaliforniaCannabis #CannabisCafes #MarijuanaLegalization #AssemblyApproval #MattHaney #CannabisBusiness #LegalizationUpdate #CannabisEvents #WorkplaceProtections #SmallBusinessSupport

4

#inthenews Sonoma County officials are considering reducing tax rates for cannabis cultivators and manufacturers to alleviate financial strain amidst declining revenues and plunging prices in the industry. 🔗 https://lnkd.in/g-nGN-EA A year ago, HdL's Mark Lovelace said, "The state is producing more than three times as much cannabis as all of California consumes in a given year. The industry is being shaped by the same free-market forces that shape other industries, with the predictable result of concentrating market share into the hands of a few large companies." Read his article: 🔗 https://lnkd.in/gNH93dbz #localgovernment #cannabisindustry #revenuemanagement

10

1 Comment

Register for next week’s webinar with Emerge Law Group to gain access to legal tools for the next set of significant challenges in Oregon cannabis. 💡 Don’t forget there is a Q&A session with leading cannabis lawyers Alex J Berger and Kevin Jacoby for any questions you might have about OLCC’s new CAMP system and the new batch tagging rules. Register here: https://lnkd.in/gJU5ZCew #financialmarket #cannabis

7