In today’s HK Cannabis Law Newsletter, we present articles regarding, California’s thriving illicit market, a “creative” approach to labor peace agreements, California’s response to government corruption in the cannabis industry, and more!
The illicit market remains a “menace to the community,” according to the Department of Cannabis Control.
In California, securing a labor peace agreement (“LPA”) is a pre-requisite to obtaining a cannabis license, but some cannabis companies appear to be circumventing this requirement by entering LPAs with memberless, fictitious, company unions with no intention of organizing workers.
If the thriving illicit market were not enough of a problem for California’s struggling legal market, the cannabis industry is also plagued by government corruption. State officials are launching an audit to address the problem.
The consequences of operating an illicit dispensary often involve only a fine. “We just re-open the next hour or the next day,” said the owner of one illicit operation that had been raided eight to ten times. When combined with the onerous taxes and regulations imposed on legal operators, the result is a “thriving” illicit market.
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