L.A. City Council Voting on Cannabis Ordinances TODAY

Posted by Margolin & Lawrence on December 5, 2017

Cannabis attorney Allison Margolin addressing the LA City Council on the new zoning regulations on Monday:

Today  the LA City Council will vote to determine all of the City's.  the city's new restrictions on where a cannabis business may be located. The current California cannabis law requires that cannabis businesses be located more than 600 feet from all schools.

Los Angeles cannabis attorney

On top of that, LA's most recent draft of its location ordinance required businesses intending to conduct on-site retail sales to be located 750 feet away from sensitive-use areas, including schools, public parks, libraries, and drug treatment facilities, as well as any existing marijuana retail business.

While this is a more lenient approach to sensitive-use areas than LA's previous zoning restrictions, which called for an 800-foot buffer zone, some cannabis businesses and marijuana advocates, including our Los Angeles Cannabis lawyers, argue that introducing two different distancing standards will only complicate the already-opaque standards for marijuana zoning.

The City Council's vote will take place at 10 A.M. tomorrow, December 5th, at 200 N. Spring St.

Update on the L.A. Cannabis Social Equity Program

Posted by Margolin & Lawrence on November 29, 2017

Yesterday, the Los Angeles City Council met to discuss cannabis issues before voting on the final ordinance next month. Our Los Angeles Cannabis attorneys were present and are closely following developments on the path to a final LA Cannabis Ordinance and Social Equity Program. Broadly, the Los Angeles Social Equity Program aims to prioritize applicants who were disproportionately impacted by the war on drugs and criminalization of cannabis, and give them an opportunity to participate in the now legal, newly regulated market. 

The discussion yesterday centered around the social equity program and the tier system, which establishes priority to individuals with a criminal history. The social equity program will benefit disadvantaged communities. As a reminder, Tier 1 applicants are those who have a prior cannabis related conviction, a cumulative household income below the federal poverty line and have at least five years residence in an area impacted by the War on Drugs. So the question becomes, should priority be given to individuals with a criminal history? 

Opinions were heard on both sides of the controversial issue. The purpose of the social equity program is to help remove barriers for persons with a criminal history to equitable ownership and employment opportunities. Concerns were raised the criteria for Tier 1 was limited to cannabis only related crimes. The LA Dept. of Cannabis Regulation reasoned the purpose is to provide legitimate business opportunities in a now legalized industry. Oppositions were raised that the tier system did not distinguish between the level of offense such as, a misdemeanor or felony and excludes low income neighborhoods not impacted by the War on Drugs. This suggests person(s) convicted of a minor cannabis crime will have priority over person(s) who have been established in a disproportionately impacted community for many years. Recommendations were made to the Dept. of Cannabis Regulation to define distinct requirements to qualify as a Tier 1 applicant. For more information on the social equity program click here.

In addition to the Social Equity Program, the Council is also considering the revised Location Ordinance which introduces new distancing requirements. An important change to the proposed zoning ordinance is the addition of a 600 foot buffer to sensitive use areas for all activities including cultivation and manufacturing. Make sure you check the location

of your business is compliant with the land use ordinance. The vote is next week so make your voice heard and submit your comments to the City Council by December 4th

If you have questions about the Social Equity Program or the new zoning changes,Contact us to speak with one of our Los Angeles Cannabis Attorneys.

Los Angeles Introduces Cannabis Social Equity Program Criteria

Posted by Margolin & Lawrence on November 20, 2017

As we approach the Thanksgiving holiday, Los Angeles is one step closer to cannabis licensing. Here is the latest from our Los Angeles cannabis attorneys who attended today's City Council meeting. Today the Council further discussed the Social Equity Program and the 4 Tiers of priority that will be given to eligible applicants. Tier 1 will get the highest priority for Los Angeles cannabis licensing (after Measure M Retail priority which you can read more about here), and Tier 4 will get the lowest of the Social Equity applicants.

Breaking news: California releases emergency cannabis regulations

Posted by Margolin & Lawrence on November 16, 2017

Today, California’s three state cannabis licensing authorities released proposed emergency licensing regulations for commercial medicinal and adult-use cannabis. The regulations are intended to reflect the law that was set out in California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), and will replace the draft regulations that were released for cannabis cultivation, manufacturing, retail and other activities in April 2017 (you can read more about the prior regulations in our post here).  These regulations will allow the state to start issuing temporary licenses to conduct commercial cannabis activities on January 1. Our San Francisco and Los Angeles cannabis attorneys are analyzing the new regulations and comparing them to the previous draft and we will do a more in depth post on what has changed very soon. 

Ask an LA Cannabis Attorney: So What's Happening in WeHo?

Posted by Margolin & Lawrence on November 9, 2017

On November 5th, the City Council of West Hollywood put an end to a long period of speculation about the future legal status of cannabis in their jurisdiction, moving to allow recreational and medical marijuana dispensaries, delivery services. In particular, the WeHo City Council approved of allocating 8 licenses per type of cannabis activity (Adult-Use retail, Consumption Areas with On-Site Adult-Use retail, Delivery Services, and Medical-Use dispensary,) and confirmed this decision on the morning of November 8th. These activity types are of interest in themselves: Allowing retail spaces to provide an area for on-site consumption means WeHo might soon be the home of hip, Amsterdam-style marijuana cafés.

While this explains quite a bit about West Hollywood's approach, some aspects of the city's regulations remain unclear. For instance, the exact selection process for the 8 licenses per activity has not been decided by the City Council. Moreover, the zoning regulations for marijuana businesses have also not been finalized by the city. To address these questions, the City Council of West Hollywood will meet again on November 20th to discuss zones and grading criteria for licenses. The City Council has given itself a deadline of December 6th to resolve these issues, which it hopes to meet before the new laws come into effect on January 1st.

As it stands, what our cannabis lawyers know about the future process for license application selection is as follows: The top eight applications will be issued licenses based on merit. Some of the criteria in consideration for "merit" will include compliance with the city's social equity program, operating a pre-existing cannabis business that's in good standing in WeHo, or previous experience with a cannabis business elsewhere in the state. Again, these criteria have been merely discussed and not approved. Once the criteria are fixed, the city will essentially grade each application based on the standards they establish.

Since relatively few licenses will be granted, it is imperative for any marijuana business applicant in West Hollywood to not only meet the criteria set out by City Council, but also to provide adequate reasoning for why its merits qualify it to be chosen over the other applicants. The application period will be open in January 2018 for a period of 30 days; since the timeframe is so short, if you're interested in starting a cannabis business in WeHo, it's important to get started on the application process now.

For more information or to set up a consultation with our Los Angeles cannabis lawyers, take a look at our guide to California's new marijuana laws or email us at info@margolinlawrence.com

Ask an LA Cannabis Attorney: How Can I Prepare for Cannabis Licensing?

Posted by Margolin & Lawrence on October 6, 2017

While there has been much debate over LA’s recent Draft Regulations, not much has been stated clearly about how to prepare for the LA license application process. You can read more about the draft regulations here, here, and here. Below is some guidance from our Los Angeles Cannabis Attorneys. As you know from our previous posts on SB 94,  you will need City or County authorization in order to apply for a State License. The areas you can start preparing for fall into a few main categories: real estate, taxes, corporate documents and financial planning.

Los Angeles Updates Draft Cannabis Regulations

Posted by Margolin & Lawrence on September 25, 2017

On September 22, 2017, the City of Los Angeles released Revised Draft Requirements for Commercial Cannabis Activity in the City. Our LA cannabis lawyers have analyzed the regulations and compared them to the June 2017 draft, and there are drastic differences that will affect large portions of the thousands of cannabis operators within the City. 

The major change is that only dispensaries will be allowed to apply first - under Priority licensing - to the City. Originally, cultivators and manufacturers that could prove they had been operating since before January 1, 2016, were going to be able to apply along with dispensaries who had a 2016 or 2017 business tax registration certificate from the City (BTRC). Now, all cultivators and manufacturers will apply in the Social Equity or General Processing round, which will be held at the same time. 

The number of dispensaries that will qualify for priority has been expanded to include dispensaries in compliance with the current medical marijuana laws that have a 2015 or later BTRC, in addition to those that have a 2016 or 2017 BTRC (the original group that would receive priority). You can read more about the prior draft here.

Additionally, cultivators and manufacturers who could prove operation before 2016 under the June regulations were going to be able to receive certificates of compliance that allowed them to continue operating. This is no longer the case. Only dispensaries that are preexisting and meet the criteria will be authorized to continue operations under the current draft.

Where Can I get a Cannabis Distribution License in California?

Posted by Margolin & Lawrence on September 21, 2017

Under California’s SB-94 (aka MAUCRSA), the retail sale of marijuana products to consumers is only legal if the business owner holds a license for cannabis distribution. Since this covers all sales of cannabis products, from marijuana proper to derivatives like hash oil and CBD, these licenses are in high demand. Many clients often ask our cannabis lawyers what happened to the Transportation license. This was a license type under the MCRSA but that provision was repealed in SB 94 and the activities covered by the old Transportation license have now been merged into the Distribution license. So, the state license is now for the same activity but under a different name.

In order to qualify for the state license, your business must first hold a local license (or local authorization), which can only be granted by the municipality the business intends to operate in. For those eager to enter the world of cannabis distribution, the question is: which cities are giving out these licenses? Here are a few cities that have distribution in their ordinance and are either already issuing distribution licenses or are on the road towards doing so:

  • Adelanto
  • California City
  • Cathedral City

 

  • Coalinga
  • Desert Hot Springs
  • Emeryville
  • Long Beach
  • Los Angeles (expected* but we will have to wait for the Ordinance to be sure)
  • Maywood
  • Needles
  • Nevada City
  • Oakland

An ordinance does not necessarily mean that it will be easy to secure a license. Many cities put heavy restrictions on how many distribution licenses will be granted, and the regulations that must be complied with are robust.  

Regarding Los Angeles, all indications appear that LA will allow this cannabis activity. However, the City has until September 30th to promulgate an ordinance, and we will not know for sure until we see the final version. The fact that they have included distribution in the draft location ordinance (which you can read more about here and here) and in the operating requirements suggests that they will. Stay tuned for updates from our LA cannabis attorneys as the City’s local regulations take shape.

Categories

This blog is not intended as legal advice and should not be taken as such. The possession, use, and/or sale of marijuana is illegal under federal law.