The California Dept. of Food and Agriculture is suing California brand Lowell Herb Co. and associated entities for allegedly engaging in commercial cannabis activity without a license.
- The suit alleges that between December 2018 and March 2019 Lowell had been processing cannabis without a license at a site in San Luis Obispo County. In March the CDFA and the California Department of Fish and Wildlife seized approximately 17,772 pre-rolls, 7,162 jars of flower and more than 1,400 pounds of product.
- The suit says such actions harm California’s licensed cannabis market and helps the illegal market.
- Those in violation can be subject to penalties of up to three times the cost of the license and be forced to pay the costs of destroying unlicensed product. “Each day of operation shall constitute a separate violation,” which could cost more than $27,000/ day. The complaint was posted online by Instagram account @theblacklistxyz.
- Lowell did not respond to a request for comment.
Lowell attracted attention this year for opening California’s first cannabis restaurant. Before the suit landed, it said it was dropping “Lowell” from the restaurant’s name.
L.A. Magazine
Quick Hits
- California dispensary Harborside will appeal the federal case it lost fighting industry-hated tax rule 280E. The company has been ordered to pay about $11M in back taxes from between 2007 and 2012. ????WW California has more.
Bloomberg Tax - With industry support, California launched a major crackdown on unlicensed LA shops.
AP - Nevada Gov. Steve Sisolak (D) discussed the state’s efforts to regulate cannabis.
Nevada Independent
