The California Legislature has passed Assembly Bill 1482 – Tenant Protection Act of 2019 (“AB 1482”), providing for comprehensive statewide residential rent control and eviction protections.  Signed by Governor Newsom in October 2019, and commencing January 1, 2020, AB 1482, among other things, requires a landlord to evict a tenant only for “just cause” if the tenant has occupied the property for more than 12 months.  (See original post here.)  AB 1482 will remain in effect until January 1, 2030.
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On November 25, 2019, FDA issued Warning Letters to 15 companies illegally marketing cannabidiol (CBD) products. On the same day, U.S. Food & Drug Administration (FDA) published a revised consumer update, “What You Need to Know (And What We’re Working to Find Out) About Products Containing Cannabis or Cannabis-derived Compounds, Including CBD,” describing the “very limited” scientific information available about CBD and its health effects. The points made in the Warning Letters and update are nothing new to those closely following the FDA working group on cannabis and CBD, but the actions signal the FDA’s continued enforcement against companies marketing CBD foods, supplements, and cosmetics with unsupported health claims.
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On November 20, 2019, the House Judiciary Committee approved a bill that would decriminalize cannabis on a nationwide scale. The Marijuana Opportunity, Reinvestment and Expungement Act of 2019 – or MORE Act – passed with what some are calling a landslide vote of 24-10, with two Republicans – Representatives Matt Gaetz (R-FL) and Tom McClintock (R-CA) – crossing party lines to join in supporting bill. This vote marks the first time in history a congressional committee has affirmatively approved to end federal cannabis prohibition. The committee markup of the MORE Act is historical in and of itself, as it represents the first debate that was not centered on whether cannabis prohibition should be abolished, but, instead, focused on implementation of a policy that would ultimately accomplish cannabis legalization.
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The legalization of cannabis in several states had left a major question unanswered: is an employee who violates the federal Controlled Substances Act (“CSA”) by distributing cannabis as part of his or her job still subject to the federal Fair Labor Standards Act (“FLSA”), which provides for the payment of wages?
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On October 29, 2019, the U.S. Department of Agriculture (USDA) released its long-awaited interim final rule governing the U.S. Domestic Hemp Production Program. USDA has been developing these interim regulations since hemp was federally legalized under the 2018 Farm Bill. These hotly anticipated rules are important not only for hemp producers and hemp-derived product companies, but for cannabis companies interested in diversifying or pivoting into a crop that is legal under federal law.
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On October 12, 2019, Governor Newsom signed Assembly Bill 1291 (“AB 1291”) into law, which requires companies to sign a so-called “labor peace” agreement with a union or risk losing their cannabis license; thereby, strengthening already union-friendly statewide cannabis law.
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Last week, in what may be the first of its kind, a putative class of Massachusetts consumers filed a false labeling class action complaint against Global Widget LLC, d/b/a Hemp Bombs (“Hemp Bombs”) (Ahumada v. Global Widget LLC, D. Mass. Case No. 1:19-cv-12005), challenging the labeling of numerous Hemp Bombs products, including gummies, lollipops, capsules, syrup, vape and pet products.
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U.S. House lawmakers on Wednesday approved overwhelmingly by a 321-103 vote the SAFE Banking Act. The SAFE Banking Act would pave the way for financial institutions and insurance companies to serve state-legal cannabis businesses and ancillary businesses without fear of federal reprisal. Ninety-one Republicans voted for the measure, in a showing of strong bipartisan support. This marks the first time a body of Congress has approved pro-cannabis legislation.
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On May 2, 2019, the United States Trademark Office issued new Examination Guidelines for goods and services associated with cannabis and cannabis-derived products and services legalized under the 2018 Farm Bill.[1] This crack in the federal armor against the cannabis economy opens the door for the federal registration of trademark rights and is an important step toward normalizing the nation’s laws governing cannabis and cannabis-related business activities in states where such products are legal.
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