Articles Posted in California marijuana business lawyers

In 2018, the federal government took several steps to legalize the manufacture and distribution of industrial hemp, the part of the cannabis plant that only contains trace amounts of THC (the psychoactive component) and which has a number of industry uses from food to clothing to building materials. Unfortunately, thanks to bureaucracy in the rulemaking process, there remains a fair amount of confusion that leaves drivers and carriers that ship hemp from state-to-state vulnerable to legal trouble.hemp lawyer Los Angeles

As noted by the Commercial Carrier Journal, drivers face potential criminal action if they navigate through a state that doesn’t have clear hemp rules in place that align with the Farm Bill of 2018. If a state law does not allow hemp, our Los Angeles hemp lawyers would advise farmers and carriers to map their routes accordingly.

There are published cases of at least half a dozen drivers over the last 18 months being arrested and charged with felony counts of marijuana trafficking and distribution. There are also many cases of drivers hauling hemp that is mistaken for marijuana. Continue reading

State cannabis officials could soon require marijuana shop owners to display proof of their licenses (also known as Quick Response codes) in store front windows for the benefit of consumers as well as to crack down on unlawful sales. Los Angeles marijuana business lawyers

Late last year, the California Bureau of Cannabis Control began urging retailers to post their QR codes somewhere visible. Customers could use their cell phones to scan the QR code and quickly ascertain whether the store has a state-issued license – which in turn means their products are subject to rigorous testing. Although this push began as entirely voluntary, officials are now mulling an emergency regulation that would make the display a requirement. The codes might also need to be carried by anyone transporting the drug for easy verification. Consumers can also run a retailer’s address through the BCC online license search feature to determine whether a shop might be displaying counterfeit QR codes.

BCC chief Lori Ajax released a statement indicated that the displayed QR codes (or lack of them) could also be used by law enforcement to quickly ascertain whether a business is legal. Those that are not would face not only closure and civil fines, but possibly also marijuana trafficking charges. Continue reading

Although cannabis is now legal in some form in more than half of the U.S., shipping it across state lines is still a crime for which people across the country are being arrested. This is true even in cases where it is being shipped between two states where it’s legal in recreational form. That’s because it’s still very much illegal at the federal level. marijuana shipping

The U.S. Postal Service is a federal entity, so federal law applies (even if you’re using another carrier, such as FedEx, DHL or UPS). Whether you ship marijuana intrastate or interstate, you risk being charged with marijuana trafficking, for which there are minimum mandatory federal prison sentences depending on how much product has been moved.

Industrial hemp and its derivatives are the exception under the 2018 U.S. Farm Bill, but even that has proven problematic (just ask long haul truckers). Continue reading

The California-based cannabis list site, Weedmaps, has held true to its promise to drop unlicensed cannabis advertising listings from its platform by January 1, but the work is ongoing.

Industry insiders say the very nature of Weedmaps – a self-published platform that fails to vet ads prior to posting them – continues to afford illegal businesses a means of maintaining a small presence on its promotional site.

Cannabis business attorneyBackground
In late 2019, the licensed California cannabis industry pressed Weedmaps to cease posting ads for illegal marijuana businesses. The site then set itself a deadline of January 1, 2020. By which time, the platform said it would require current state license number submissions for all California advertisers on its site, before ads could go live.

And as that January 1 deadline has arrived, the industry has been taking note. A Weedmaps statement earlier this week indicated the site had received state issued license numbers from “hundreds of retail clients.” But the statement failed to share the number of ads rejected, and also neglected to detail how many Californian companies currently advertise on the platform.
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With 2020 being the third year Californians enjoy the legal use and sale of recreational cannabis, stakeholders expect new laws kicking in, big court cases taking place, and major reforms to criminal justice, all to make this a big year for the cannabis industry.

While 2019 was a challenging year for many cannabis business operators, industry insiders say changes being ushered in bring with them hope, that situations will improve for business owners as the industry presses on.

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After two years of licensed cannabis stores selling legalized marijuana across California, the industry has encountered numerous teething problems. Crippling regulation and licensing costs, rising local and state taxes, local city usage bans, and a strong illicit market that shows little sign of waning, have all proved to hinder industry growth. At this point, it is safe to say the Golden State’s legal marijuana industry is in need of a little prod, to help it move forward.

Calling for a Return to the Ballot
With lawmakers seemingly finding it difficult to pass any changes as quickly as the cannabis industry needs them, Cody Bass has floated another idea.
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Californian payment provider, Linx Card, has fielded a spate of lawsuits from cannabis businesses in recent months, who claim the primary provider of debit merchant services to marijuana retail stores, owes them millions.

Linx offers customers a platform where they can purchase Linx gift cards, or pre-paid debit cards, that can then be used to make in-store cannabis product purchases using those cards. Terminals within select retail stores sell the Linx gift cards, as does the Linx website.

marijuana bankingCourt Filing Woes
Court filings made across the country allege that Linx owes at least four marijuana businesses money. Those sums include:

  • $40,092 to Universal Herbal Center and Pineapple Express (who operate marijuana stores in California);
  • $114,962 to Colorado retailer, Silver Stem Fine Cannabis;
  • $939,010 to Las Vegas superstore retailer, Planet 13; and
  • $1.5 million to Arizona and Nevada Reef Dispensaries.

In a statement, Linx CEO Patrick Hammond, acknowledged the company is working to resolve these issues and plans to ensure retailers are paid in full.

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The nationwide vape crisis, driven by high-profile health scares that included an outbreak of lung injuries has led to California cannabis vape companies’ sales taking a steep dive along with consumer confidence. Although much of the problem appears to have been tracked to illegal manufacturers – some not even in the U.S. – consumers are still wary of wading back into the vape world. Los Angeles cannabis vape company lawyer

To combat the problem and assure the public that their products are safe, a growing number of cannabis vape businesses are unveiling various technologies that create a more transparent supply chain.

Our Los Angeles cannabis vape company attorneys understand some of these solutions involve smartphone apps that show buyers:

  • Certificates of analysis that show the product has been through a battery of quality testing;
  • QR codes that give consumers information about the usage and dosing of each particular vape product;
  • Encryption cartridges so consumers can be sure that what they’re buying is a safe, state-legal product;
  • Proof the manufacturer has adopted quality testing methods that go above and beyond what the state requires.

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The City of Pasadena sued itself over a controversial cannabis ballot initiative – and won. The result is a judge has ordered the county to remove the proposed measure from the city ballot in the upcoming March election. Had the initiative passed, it would have legalized some 18 cannabis businesses operating without in the city without permits.Los Angeles marijuana business lawyer

Not only would those stores have been legalized, but they wouldn’t be subjected to the same set of stringent rules laid forth in the city’s permitting process. The rules for pot shop permitting in Pasadena are so strict, in fact, that it only allows four-to-six retailers to operate in the city at a given time.

The measure had been signed by more than 9,000 residents, so the city clerk had no choice but to add it to the ballot. The city didn’t blame the clerk or other city employees for the proposed measure; they did what the law compelled them to do. But in order to remove it from the ballot, an attorney for the city explained there was no choice but to sue its own clerk as well as the county’s registrar of voters. Neither the clerk nor the city were defending the initiative; that was left to another lawyer who represented the interests of those backing it. Only a judge could determine whether a ballot initiative is unlawful in advance of such a vote. The city sought an expedient ruling, as a decision was needed by Christmas Eve in order to ensure the measure could be removed from the spring ballot. Continue reading

In a recent statement on a large-scale federal funding bill that President Donald Trump signed into law, he released a statement indicating he reserves the right to essentially ignore any provision of law approved by Congress that seeks to shield medical marijuana laws from federal interference. Los Angeles marijuana lawyer

The statement notes that Division B, section 531 of the Act disallows the U.S. Department of Justice from using funds made available under the act to prevent medical marijuana cultivation and distribution by the various states and territories where it’s allowed. The Trump administration, the statement said, would treat this provision in a manner consistent with the president’s constitutional duty to execute federal laws in good faith. As it stands, marijuana is still classified as a Schedule I narcotic under the Controlled Substances Act.

Our Los Angeles marijuana lawyers don’t necessarily take this to mean the president will ignore the Congressional block on DOJ funds or that we’ll start seeing any enforcement crackdown efforts again soon as we did a few years ago under the Obama administration. In fact, it might not mean much considering presidents often will sign statements like these while flagging certain aspects they believe might be an impediment to executive branch authority.

Ambiguous though the statement was, it still warrants some degree of concern. The effect of it is that the executive branch has expressly declared that it can broadly enforce U.S. drug laws against people or marijuana businesses, even if they’re in total compliance with state marijuana laws and even though Congress has instructed the executive branch to use a hands-off approach. Continue reading

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