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Dec. 17-23, 2019 Dispensary Compliance Updates

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State

In California, the Bureau of Cannabis Control and the Department of Consumer Affairs’ Cannabis Enforcement Unit (DOI-CEU) announced a series of enforcement actions against illegal cannabis retailers operating in Los Angeles. Search warrants were served on 24 unlicensed locations over a 3-day period from December 10 to December 12 and resulted in the seizing of $8.8 million in cannabis and cannabis products. Enforcement staff also confiscated 9,885 illegal vape pens and $128,742 in cash.

In Colorado, MED regulators published the application for new Marijuana Hospitality Businesses established under New Marijuana Rules, 1 CCR 212-3 effective January 1, 2020. “Marijuana Hospitality Business” means an entity licensed to permit the use or consumption of marijuana within a Consumption Area.

The Maryland Medical Cannabis Commission has appointed William Tilburg as its executive director after serving as the acting director for several months after Joy Strand resigned. The appointment marks the commission's third executive director since April 2016.

In Massachusetts, the state legislature's Joint Committee on Cannabis Policy will consider several cannabis bills on 12/17/19. 

Michigan regulators issued a technical bulletin on remediation of marijuana from medical to adult-use.

LARA held a public meeting in Flint and the livestream is available on facebook. 

In Nevada, lawmakers approved $125,000 for a statewide summit to set a public health strategy "to address the alarming increase in cannabis use as well as the use of vaping products," as requested by the Nevada Department of Health and Human Services.

The Oklahoma Medical Marijuana Authority (OMMA) re-opened its call center Monday. The center, which closed in early 2019 so staff could focus on processing medical marijuana applications, is staffed with 14 operators trained to answer questions about medical marijuana in the state.

Federal / Tax

Oakland, California-based Harborside, as expected, appealed an $11M judgment related to Section 280E of the IRS tax code, which bars legal marijuana businesses from taking deductions enjoyed by ordinary businesses. Harborside’s case in U.S. Tax Court has been among the most closely watched in the cannabis industry, with huge, positive implications for state-legal businesses if Harborside were to prevail. The retailer argues the tax should be based on income, not sales, citing the 16th Amendment of the Constitution, which gives the federal government the power to collect taxes based on “incomes.” The cleanest resolution would be federal reform of 280E itself for cannabis-related businesses, but there’s been little progress on the issue in the U.S. Congress.


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Author

Brittany Radice


Compliance Officer

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