Cannabis Business Licensing

July 13, 2023

A Deep Dive into California’s Assembly Bill 128: The Future of Cannabis Event Licensing

In a landmark move for the cannabis industry in California, Democratic Governor Gavin Newsom has signed Assembly Bill 128 into law. This pivotal legislation grants state regulators the authority to license Cannabis Event Organizers, marking a significant shift in the state’s burgeoning cannabis market.

Under the new law, Cannabis Event Organizers are defined as “a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event, district agricultural association event, or at another venue expressly approved by a local jurisdiction.” This means that, for the first time, cannabis can be legally sold and consumed at a wide range of public events, provided the organizer has obtained the necessary license.

One of the key aspects of Assembly Bill 128 is its approach to licensing. The bill exempts owners who have previously submitted fingerprint images and related information in connection with a valid state license issued by a licensing authority. This means that if an owner has already undergone the licensing process for a different type of cannabis business, they will not need to submit new fingerprints for a cannabis event organizer license.

July 12, 2023

Detroit’s Second Round of Marijuana Business Licenses: An Opportunity for Equity Applicants and a Call for Expert Guidance

By Cannabis Law Group

The city of Detroit is set to open its second round of limited cannabis business licenses, marking a significant step in the expansion of the city’s cannabis industry. Starting August 1, the city will begin accepting cannabis business license applications for a variety of licenses, including dispensaries, microbusinesses, and consumption lounges. This presents a unique opportunity for entrepreneurs looking to enter the burgeoning cannabis market, and the Cannabis Law Group is ready to provide expert guidance to navigate this process.

In this round, the city is offering 30 marijuana retailer licenses, 10 microbusiness licenses, and 10 consumption lounge licenses. Notably, half of all licenses are reserved for “equity applicants.” These are individuals who live in communities that have been disproportionately impacted by marijuana prohibition and enforcement. Equity applicants also include those with certified Detroit Legacy status living in Detroit or another disproportionately impacted community.

The announcement of this second round of licenses comes eight months after the city awarded 33 businesses recreational retail marijuana licenses. Following this, in early January, recreational marijuana officially became available for purchase in the city. Currently, there are 28 recreational marijuana dispensaries operating in Detroit.

July 12, 2023

San Jose’s Cannabis Tax Revenue Dips: A Call for Regulatory Revisions and Market Expansion

By Cannabis Law Group

San Jose, a city known for its thriving cannabis industry, is facing a significant drop in cannabis tax revenue this year. The decline, projected to be in the millions, is attributed to the growing competition from the black market and cannabis delivery services. With a predicted $19 million budget shortfall for next year, boosting tax revenue from the cannabis sector remains crucial.

The city’s budget surplus currently stands at $35 million. However, the decline in cannabis tax revenue is a significant concern. In response, the San Jose City Council has shown interest in easing the regulatory burden on cannabis businesses. Recent moves include loosening cannabis business licensing laws governing where dispensaries can establish themselves and reevaluating penalties placed on legal businesses.

Illegal sellers appear to be capitalizing on the market, often operating as seemingly legitimate delivery services, without generating any tax revenue for the city. Sean Kali-rai, a lobbyist and founder of the Silicon Valley Cannabis Alliance, expressed his concern over the growing prevalence of unauthorized dealers. He stressed the importance of the city’s Division of Cannabis Regulation in overseeing and regulating the cannabis market.