Cannabis Law Blog

News & Insights for Cannabis Law and Business

On March 31, 2021, New York Governor Andrew Cuomo signed the Marihuana Regulation and Taxation Act (the “MRTA”) into law, making New York the latest state to legalize recreational marijuana.  The MRTA allows adults aged 21 and older to possess, purchase, display, obtain, and transport marijuana in limited quantities.  The MRTA takes effect immediately, although the sale of recreational-use marijuana is not expected to become legal for at least another year.  The legalization of marijuana will have significant effects on many aspects of society in New York, including in the workplace. Even before the MRTA was signed into law, New…
On Wednesday, two businessmen were convicted of a single count of conspiracy to commit bank fraud (18 U.S.C. § 1349) for orchestrating a scheme to disguise cannabis-related financial transactions as transactions unrelated to cannabis.[1]  The conviction followed the close of a three-week trial in the Southern District of New York, which was one of the first federal criminal trials to be held in person since the start of the COVID-19 pandemic.  The jury deliberated for less than a day.  Sentencing is scheduled for June 25, 2021.…
The trial of two men associated with an online cannabis marketplace began last week in the Southern District of New York.  Prosecutors seek to prove that Hamid Akhavan and Ruben Weigand, two businessmen who worked with the online platform from 2016 to 2019, conspired to commit bank fraud by disguising credit and debit card transactions for cannabis purchases as transactions for non-cannabis purchases.  While selling cannabis remains illegal under federal law, the case demonstrates how cannabis businesses face white collar enforcement risks unrelated to drug-trafficking charges.   …
The end of 2020 was not the end of the California Legislature’s focus on employment-related legislation.  Just two months into the new year, the Legislature has already introduced several bills addressing the workplace that could impact employers who still may be implementing coronavirus-related legislation.  This article discusses two such bills on the horizon that employers will want to follow as they work their way through the Legislature.…
On January 15, 2021, the U.S. Department of Agriculture (USDA) announced the publication of its hemp production Final Rule in the Federal Register.  The Final Rule will go into effect on March 22, 2021.  The Final Rule largely builds upon the Interim Final Rule which was in effect for the 2020 hemp growing season.  It also takes into account feedback from three public comment periods.  Below are six key takeaways from the Final Rule:…
On January 25, 2021, the NLRB Division of Advice (“the Division”) released a memo that may indicate a change in the way workers engaged in cannabis activities are covered under federal labor law. Under the NLRA, the right to form and join a union is limited to employees. Agricultural laborers do not have that right under federal law. Despite the fact that many workers in the cannabis industry are often involved in the cultivation and harvesting of a crop, they have typically been considered employees rather than agricultural laborers under the National Labor Relations Act (“NLRA” or “the Act”). This…
On December 9, 2020, the House of Representatives passed H.R. 3797—The Medical Marijuana Research Act (the “Bill”), expanding access to cannabis for medical research purposes.  In so doing, a bipartisan majority of members of the House of Representatives agreed that, while proponents and opponents of cannabis legalization are entitled to their own opinions, they are not entitled to their own facts.…
On Friday, the United States House of Representatives voted to approve The Marijuana Opportunity and Expungement Act (MORE Act),[1] which would decriminalize cannabis. This vote marks the first time that a chamber of Congress voted on a standalone cannabis bill.  While the 228-164 vote passed mostly on party lines, 5 Republicans voted in support of the bill, and 6 Democrats voted against.…
When it comes to whether unions have a right to enter an employer’s premises over the employer’s objections, California’s law is the polar opposite of the National Labor Relations Act (NLRA) and the law in most other states.  In California, unions generally have special access rights that nonlabor parties do not have.  Unions are given preferential treatment because of the state’s union-friendly public policies.  For example, under Assembly Bill 1291 (AB 1291) (AB 1291) and California Business and Professions Code Section 26001(x), any company engaged in the cultivation, packaging, distribution or sale of cannabis products cannot be licensed…
This article is the second part of a two-part article which provides an overview of Texas cannabis-related legislation and regulations affecting Texas cannabis operators and consumers.  Part I[1] covered the State’s regulations for limited medical cannabis use and consumption. In this article, we will discuss the State’s hemp program for both consumable and non-consumable products.…
Even two weeks after Election Day, jurisdictions nationwide are riding high after a number of positive wins related to the possible systemic legalization of cannabis use nationwide.  As of November 3, 2020, the pendulum now undeniably swings in favor of cannabis, with medical cannabis legal in 33 states and recreational adult-use permitted in 12 states and Washington D.C.…
Unions have long sought to avoid the NLRB’s election process, relying instead upon so-called “neutrality” agreements to obtain initial recognition by employers and legally enforceable rights to represent and bargain on behalf of previously unrepresented employees.  Although truly neutral pre-recognition “neutrality agreements,” i.e. those calling for an employer to be neutral on the subject of unionization and little more, are lawful, many such agreements go beyond mere neutrality and venture into actual employer support of organizing.  This may render such agreements unlawful under the National Labor Relations Act (NLRA or Act) because they interfere with employees’ rights under the Act. …
Alternative dispute resolution (“ADR”) – such as mediation and arbitration  – has long been an attractive alternative to litigating disputes in court, especially for parties hoping to arrive at a swift resolution.  Now, given the unprecedented backlog in California courts caused by the COVID-19 pandemic, as well as uncertainty related to re-initiation of jury trials, ADR may become an increasingly favorable option – particularly for those in the cannabis industry.  According to the 2019 Annual Report and Financial Statements published by American Arbitration Association (“AAA”), cannabis-related cases have seen more growth (225%) than any other category of AAA’s 9,737 business-to-business…
In Granny Purps v. County of Santa Cruz, the Sixth District Court of Appeal green-lit a medical cannabis cultivator’s ability to pursue damages – to the tune of potentially $3.5M – from the County of Santa Cruz when it determined the County cannot rely on zoning ordinance to seize the cultivator’s plants grown in violation of local regulation. Specifically, the Sixth District found that, while the County is not compelled to return seized property if the property is illegal, the local ordinance at issue “ultimately regulates land use within the County; it does not (nor could it) render illegal a…
The viability of California’s cannabis delivery businesses continues to hang in the balance as trial in the landmark litigation between the Bureau of Cannabis Control (BCC) and over two dozen local municipalities was postponed at the eleventh hour. In her tentative ruling, issued the afternoon before the much-anticipated bench trial in County of Santa Cruz v. BCC (County of Fresno Super Court, Case No. 19CECG01224), Judge Rosemary McGuire questioned the ripeness of certain municipalities claims challenging implementation of California Code of Regulations, Title 16, section 5416(d) (Regulation 5416(d)), which allows delivery of cannabis to any jurisdiction within the state.…