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.

According to cannabis attorney Damian Nassiri, this is great news for cannabis business license seekers because “under the old laws, it was very difficult to get a cannabis event license which allowed cannabis sales and consumption. So the laws are getting more relaxed and cannabis businesses are starting to be more accepted and treated like normal businesses. An event organizer will still need the permission of the local city and/or county in order to hold the event, and hopefully the cannabis event organizers are not taxed to death, but this is great news for cannabis business owners and cannabis consumers.”

Furthermore, the Department of Cannabis Control is prohibited from considering criminal history information from a previous check of that owner when considering whether to issue a subsequent state license. This provision is significant as it reduces barriers for existing cannabis business owners to diversify into event organizing, fostering growth and innovation within the industry.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) already authorizes the issuance of a state temporary event license for onsite cannabis sales and consumption at approved venues. Assembly Bill 128 builds on this by adding Type 13—Cannabis Event Organizer to the codified list of license classifications. This new classification recognizes the unique role and responsibilities of cannabis event organizers and provides a clear regulatory framework for their operations.

Several cities and counties in California are already ahead of the curve, offering cannabis event licenses or considering doing so. For instance, San Francisco and Oakland have been proactive in this area, recognizing the potential economic and social benefits. Other jurisdictions, such as Los Angeles County and the city of San Diego, are also considering offering cannabis event licenses.

However, each city and county may have its own specific requirements and processes for obtaining a cannabis event license. This is where having a skilled cannabis law expert on your side can make all the difference. They can guide you through the process, ensuring you meet all the necessary requirements and helping you avoid potential legal pitfalls.

Moreover, understanding the broader landscape of cannabis business licenses in California can be crucial for anyone looking to enter or expand in the cannabis industry. With the passage of Assembly Bill 128, the opportunities are expanding, but so are the complexities of the regulatory environment.

At Cannabis Law Group, we’re here to help you navigate this new landscape. With our deep understanding of cannabis law and our commitment to our clients, we can provide the guidance you need to take advantage of these new opportunities. Contact us today at 949-375-4734 to learn more about how we can assist you.

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.

The opening of these dispensaries marked the end of a years-long effort to allow recreational marijuana sales in Detroit after it was legalized in Michigan in 2018. The city faced several challenges in crafting an ordinance to allow these businesses in the community, including multiple legal challenges and zoning restrictions. The city is currently addressing these issues by reducing the distance cannabis retailers must be from other types of buildings.

The city code authorizes up to a total of 160 of the limited recreational cannabis licenses to be awarded over the course of three phases. There’s no limit on recreational marijuana licenses for processors, grow operations, and safety compliance labs, among others. The second application round closes on August 31, and prospective licensees will be notified of their approval status approximately six to eight weeks after that date.

In addition to the city’s licensing process, prospective licensees must also navigate the corresponding Michigan state licensing requirements. The Michigan Cannabis Regulatory Agency (MCRA) oversees the state’s medical and adult-use marijuana, hemp, and CBD industries. The MCRA ensures safe, accessible cannabis products for Michigan residents and emphasizes the importance of business compliance with all state laws and regulations.

The Cannabis Law Group, led by marijuana business lawyer Detroit Damian Nassiri, a seasoned cannabis attorney, is prepared to assist prospective licensees in this application process. The firm can provide expert consultation, help fill out business license applications, and draft any necessary business plans or contracts, such as partnership agreements or entity formation. They can also guide businesses through the state licensing process, ensuring compliance with all MCRA requirements.

The second round of marijuana business licenses in Detroit presents a significant opportunity for entrepreneurs, especially those from communities disproportionately impacted by marijuana prohibition. However, navigating the licensing process can be complex and requires a thorough understanding of both city and state regulations. The Cannabis Law Group is committed to providing the necessary legal guidance in this dynamic industry.

As the cannabis industry continues to evolve, staying informed and understanding the legal landscape is crucial. With the potential for significant growth in the Detroit cannabis market, now is the time for interested entrepreneurs to take action. For more information on how the Cannabis Law Group can assist with the licensing process, call them at 949-375-4734 or visit their website.

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.

“Cities like San Jose should lower their tax rates so that they can compete with the black market,” say cannabis attorney Damian Nassiri with Cannabis Law Group. “People are turning to the streets because the streets don’t tax and the state, on the other hand, over taxes the cannabis industry, which is then passed on to the customers. The customers then stop shopping at the licensed stores because they can get it cheaper from a homie, or an unlicensed shop,” explained Nassiri. “And then the customer pays a double tax – a tax on top of a tax because the state sales tax is applied to the purchase price plus the city tax. So cities should support SB 512 to end the double taxation on the cannabis industry because that is just patently unfair and cheats the tax paying citizen whose trying to do it the legal way. These are bad ‘businesspeople’ who wrote these laws because they are unnecessarily greedy – to a point where it is squashing the industry. It may sound crazy, but by lowering the cannabis taxes, the city would actually increase the amount of tax revenue they recover because more people would shop in the stores if the taxes were lower, so the overall revenue would go up. They get a smaller piece of a much bigger pie, if you will.”

In an attempt to address the local cannabis industry’s limitations, San Jose city leaders have been evaluating existing regulations since late last year. Changes have been passed to expand where dispensaries could establish their business and relax expensive annual audit requirements.

The city’s Planning Commission has also approved recommendations to decrease distance requirements between cannabis retailers and schools, daycare centers, and other community spaces, from 1,000 feet to 500 feet. This change could potentially allow up to 21 new cannabis dispensaries to open in commercial locations.

In addition to adjusting zoning and distance rules, the commission has proposed establishing an equity initiative for the cannabis industry. This initiative would permit up to 10 new cannabis businesses specifically for equity applicants, half of which could be retail storefronts.

As the legal cannabis industry continues to expand its presence in San Jose amid statewide support, the growth of the sector not only benefits the city but California as a whole. Tax revenues are reported to reach $216.2 million in the first quarter of 2023 alone. However, the persistent issue of tax leakage due to unauthorized dealers and illicit market operations remains a troubling factor that city officials must address to ensure the continued success and growth of the legal cannabis industry.

With San Jose being one of the few cities in the Silicon Valley with operating cannabis storefronts, competition from unlicensed, unregulated businesses poses a significant threat to its legal counterparts. It is crucial for local authorities to enforce measures aimed at limiting illegal cannabis sales and preserving a level playing field for legal businesses, who contribute to the city’s tax revenue and bolster its economy.

The Cannabis Law Group, led by Damian Nassiri, a seasoned cannabis attorney, is closely following these developments. The firm assists clients seeking cannabis business licenses, including cannabis retail storefront, delivery, cultivation, manufacturing, and distribution licenses. They offer legal consultations in person in their Newport Beach office, over the phone, or via Zoom, depending on the client’s preference. For more information, call them at 949-375-4734 or visit their website.

The decline in San Jose’s cannabis tax revenue underscores the need for regulatory revisions and market expansion. As the cannabis industry continues to evolve, staying informed and understanding the legal landscape is crucial for businesses and consumers alike. The Cannabis Law Group is committed to providing the necessary legal guidance in this dynamic industry.