One of the most important elements of a commercial tenancy is insurance. Generally, the landlord maintains property insurance for damage to the building, existing improvements, and surrounding property, as well as liability insurance for bodily injury and property damage occurring on the premises. View Full Post
We’ve previously written a lot about commercial leasing issues in the California cannabis space, including some basic concepts, some key things to consider in getting leases right, and some ways to improve your leases. But there are certain common questions that tend to come up in a leasing transaction, and whether you are the landlord or the tenant, getting yourself up to speed on these issues now will save you loads of trouble down the road. View Full Post
California Cannabis: an Unlikely Convergence of Enforcement Priorities California and the Feds are an odd couple in canna law enforcement. When the Cole Memo was rescinded in January, uncertainty was rife on all sides of the state-regulated cannabis industry. Neither the regulators, the regulated, nor the unregulated knew what to expect from the federal government. View Full Post
California Commercial Cannabis Update: Good News for Small Manufacturers Finally, a boost for small manufacturers. This past Friday, the California Department of Public Health—the agency charged with regulating commercial cannabis manufacturing—issued new emergency rules to allow certain types of manufacturers to operate in shared use facilities and on shared equipment, under essentially a sort of timeshare sublease arrangement. View Full Post
A recent unpublished decision out of the Ninth Circuit Bankruptcy Appellate Panel presents an interesting set of facts and a decision that may leave one questioning which direction the bankruptcy courts might be headed in the era of legalized cannabis. An elderly Nevada resident owned some commercial property at a shopping mall in South Lake Tahoe, and had been leasing it for several years to a medicinal cannabis dispensary (the lease specifically authorized the tenant to operate a “dispensary”). View Full Post
California Sees First Major Legal Challenge to Cannabis Cultivation Regulations State v. small growers: Who ya got? The California Growers Association, which advocates for small and independent cannabis cultivators, recently sued the California Department of Food and Agriculture, the state agency charged with crafting and implementing cannabis cultivation regulations. The lawsuit stems from one of the biggest controversies in the state’s 2017 emergency regulations: a loophole in the licensing scheme that would effectively allow cultivators to set up mega farms by “stacking” unlimited small grow licenses. View Full Post
California Commercial Cannabis Leases: Planning in a Time of Uncertainty Leave yourself some room to maneuver with that cannabis lease. The year 2018 began with a mixed bag. California, the nation’s most populous state and its most powerful economic engine, finally began issuing licenses to medicinal and adult use commercial cannabis businesses under the state’s new regulatory regime. View Full Post
California Cannabis: MAUCRSA and Mega Farms The licensed California mega farms are coming. When it comes to cultivation, one of the biggest developments in California’s new emergency cannabis regulations has to do with something conspicuously missing from the rules: a cap on the amount of land a licensee can cultivate for medicinal or adult-use cannabis. View Full Post