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Cannabis Law Newsletter by HK Cannabis Law – October 1, 2021

Updated: Oct 4, 2021

In today’s HK Cannabis Law Newsletter, we present articles and information regarding cannabis fines levied on unwitting landlords by the City of Sacramento (and petitions to set aside the same), guidance from the IRS on cannabis-related tax policies, an update on the state of the illicit market in California, and more!

  • After a long consolidation process involving the merging of multiple agency departments and the regulations they promulgated, the California Department of Cannabis Control’s proposed consolidated cannabis regulations have been approved.

  • After receiving approximately $500,000 in cannabis fines from the City of Sacramento, the landlord of the property at which the illegal grow operation was situated has petitioned the court to set aside a portion of the fine.

  • In related news, the City of Sacramento has issued nearly $100 million in fines for illicit cannabis operations.

  • The Los Angeles district attorney announced that 58,000 convictions related to cannabis offenses will be dismissed.

  • The IRS is launching a Cannabis/Marijuana Initiative that will provide training to tax officials on the IRS’s tax policy relative to cannabis.

  • The illicit market is employing a new strategy: buying legitimate distribution licenses, using those license to legally buy cannabis, and then selling that cannabis through illegal channels in California and other states.

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