Video 1 KTLA Channel 5 News Story June 18, 2010: Lake Forest Medical Marijuana Dispensary Appealing Injunction Order Video 2 KTTV Channel 11 News Story June 4, 2010: Los Angeles Medical Marijuana Dispensary Challenges LA's Ordinance Video 3 Cannabis Law Group's Attorney Damian Nassiri Sues the City of Los Angeles To Block It's Ban on Medical Marijuana as Featured on PBS's So Cal Insider - Part 1

Articles Posted in California marijuana business lawyers

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Manufacturers of THC vape cartridges should be alert to the fact that the industry could be facing a wave of product liability lawsuits, if headlines and recent filings are any indication. marijuana lawyer

Recently, a police officer/former U.S. Army Special Forces servicemember filed a product liability lawsuit in Washington State against numerous THC vape cartridge manufacturers, alleging he contracted a condition known as lipoid pneumonia as the result of using the vape cartridges. According to court records in Wilcoxson v. Canna Brand Solutions LLC et al., plaintiff began using a number of cannabis vapor products in January 2018, and continued use through September 2019. He suddenly woke up one night wheezing uncontrollably. When symptoms didn’t improve, he went to the emergency room. He was given the pneumonia diagnosis, and the pathology report noted indicators of a reactive airway disease that doctors traced to the vape pens. He was hospitalized for three days, and while he did return to work, it’s only been part-time and on light duty, as he can no longer run. The full extent of his injuries, the lawsuit says, is not yet known.

Asserting negligence and strict liability against a number of defendants, plaintiff accuses the manufacturers of producing and selling a product that was defectively designed, unreasonably dangerous, unfit for human use and that caused his illness.

The defendants in the case are listed as jointly and severally liable, which as our Los Angeles marijuana lawyers can explain means that a single defendant can be held legally responsible to pay damages caused by other defendants. This civil litigation strategy is often used when there isn’t enough reliable/scientific evidence to prove medical causation of one’s illness against any single defendant. (We saw this exact thing in tobacco and asbestos toxic torts.) It’s beneficial for the plaintiff too because if one defendant goes bankrupt or defunct or can’t be found, any of the others can be responsible to pay their share. Continue reading

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Marijuana business licensingLos Angeles is a bustling city with more than four million people and a large market for cannabis sales. Only the illicit market is much bigger than the legitimate one – with 189 licensed marijuana stores compared to literally hundreds of bootleg stores. The illegal outfits are able to freely funnel unregulated products to unsuspecting consumers, in large part because there are simply too few legal outfits ready to serve the LA pot market.

To add to the conundrum, president of the LA City Council has requested a do-over on issuing all new cannabis store licenses. This is likely to slow the city’s aim of getting more businesses operating legally, down even more so.
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Californian cannabis consumers should be aware that the Golden State is now flooded with toxic vape pens sold at illegal marijuana stores. Recent tests run on cannabis vaporizer cartridges purchased at bootleg pot stores across California show frightening levels of contamination, both in the way of toxic pesticides and dangerous vitamin E oil.employment attorney

Amid a nationwide crisis that has seen more than 1,400 people sickened, and at least 33 dead from vaping-associated pulmonary injury (VAPI), counterfeit vape products sold on the black market are all too often a common denominator reported in VAPI related hospitalizations.
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Those following cannabis industry trends in recent months may be troubled by a spate of layoffs announced at half a dozen sizable marijuana businesses across the country. Some speculated this might be indicative of looming financial woes on the horizon for the entire industry.marijuana business lawyer

However, our Los Angeles cannabis lawyers prefer to look at these layoffs on a case-by-case basis. There are undoubtedly some lessons to be gleaned about business planning and management, but ultimately the same kind that are relevant to entrepreneurs in any market.

Marijuana agriculture, manufacturing, processing, retail, tech and quality control sectors all comprise a new and evolving industry. Companies that don’t properly plan from the beginning phases may soon find themselves overwhelmed, overstaffed and prime for failure.

The truth of the matter is cannabis isn’t a veritable gold mine. Companies must implement careful strategy, smart investment and measured growth. Even with the increasingly high demand for the plant and derivative products, there are a fair number of marijuana businesses that simply aren’t making the money they need to survive, let alone thrive. Continue reading

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Several marijuana-related bills were signed into law by Gov. Gavin Newsom recently. Among them:

  • A measure to allow legal marijuana businesses to take advantage of more tax deductions – in a departure from IRS policy.
  • A measure to provide free medical marijuana to low-income patients – and exempting those products from state-level taxes.
  • A measure directing California regulators to provide the U.S. Department of Agriculture with a program plan for industrial hemp in accordance with the 2018 Farm Bill, which legalized the non-THC crop and its derivatives (which include CBD).California cannabis laws

In addition to passing these laws, the governor vetoed a bill that would have allowed medical marijuana to be used in hospitals and other health care facilities.

Our Los Angeles marijuana lawyers are committed to helping our clients navigate the ever-changing legal landscape of California cannabis law and regulation. With so much at stake, marijuana businesses cannot afford to ignore these changes.

Tax Law Changes

Federal tax law – specifically section 280E – prohibits those who grow, process and sell marijuana from being allowed to deduct taxes, due to the fact that the business profits from marijuana, which is illegal under federal law. Up until this point, California tax law closely matched U.S. tax law.

Now, AB 37 changes that, departing from Internal Revenue Service Policy under 280E. The measure will allow cannabis companies to take state-level deductions just like any other business – from Jan. 1, 2020 to Jan. 1, 2025. The bill takes effect immediately as a tax levy.

Greater Access for Low-Income Residents

Another measure gives greater access to medical marijuana for low-income patients. SB 34 changes the law with regard to “cannabis donations.” Existing administrative law bars licensed cannabis retailers from providing free cannabis to anyone at a licensed premises. There is a narrow exception for licensed medical marijuana retailers and those with micro-business licensees that are providing medical marijuana to patients who struggle to afford it.

SB 34 authorizes all licensed cannabis shops to offer free or reduced-cost marijuana or related products to medical marijuana patients who meet certain medical and income requirements. The bill further exempts marijuana businesses from being taxed on these “donations.”

No Cannabis in Hospitals

One measure that failed was SB 305, which would have required some health care facilities to allow medical marijuana access to terminally ill patients on site. In a veto message, the governor said he “begrudgingly” declined to make the measure law – for fear it would have jeopardized Medicaid and Medicare funding for those facilities. Those programs are subsidized by federal tax dollars, and using that money for an outlawed Schedule I narcotic could have cost the healthcare industry dearly.

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marijuana bankingIn the nation’s first ever vote on a stand-alone marijuana bill, the House of Representatives voted to allow federally insured banks to serve cannabis businesses in states like California, where marijuana use is legal.

First introduced by Rep. Ed Perlmutter, D-Colorado, the Secure And Fair Enforcement (SAFE) Banking Act simply states that deposit insurance cannot be cut off by federal authorities, nor can “any other adverse action” be taken against a financial institution for working with cannabis businesses in states and territories where marijuana use is permitted.

A great number of Democrats from Southern California were among the 206 co-sponsors of the bill, as was GOP Rep. Duncan Hunter of San Diego. Rep. Katie Porter, D-Irvine, also introduced an amendment making it clear that new banks and credit unions would be protected by the bill too. Continue reading

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Los Angeles cannabis business lawyerFollowing a slew of vaping related lung disease cases, a Los Angeles City Council member calls for a year-long ban on all vaping sales.

The proposed ban has many in the industry rushing to cut the motion off before it becomes law. The major concern is that such a ban could mean the end for countless vaping companies who are solely in business to sell vape pens and cartridges. Continue reading

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The black market for marijuana in California is three times the size of the legal market, a recent audit has shown. The findings, made public in September, highlight the state’s ongoing battle to curb its illegal cannabis trade.marijuana dispensaries

Approximately 2,835 unlicensed dispensaries were listed as trading across California, according to the audit conducted by the United Cannabis Business Association (UCBA), a trade association representing a wide variety of licensed marijuana businesses. Interestingly, the Bureau of Cannabis Control has only licensed 873 cannabis merchants to operate lawfully within the Golden State.

These comparative statistics reflect the continued hiccups California has faced since rolling out updated legal regulations beginning in 2018, which were intended to level the cannabis market’s playing field. Continue reading

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While many California cities and metro areas have been resistant to allowing cannabis shops within their borders, despite the state’s legality, a new poll shows most Golden State residents want easier access.marijuana business lawyer

It’s been nearly three years since voters in California legalized recreational marijuana sales, cultivation and possession with Proposition 64. Yet fewer than 1 in 3 California cities allow marijuana businesses to set up shop and sell recreational-use marijuana, creating so-called “weed deserts” that has given black market sales a means to thrive.

Now, a recent poll by the U.C. Berkeley Institute of Government Studies, conducted for the Los Angeles Times, shows that nearly 70 percent of Californians want cities and counties to allow pot shops in their communities. Prop. 64 was passed with the support of 57 percent of voters. Continue reading

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A historic cannabis banking bill was recently passed by House legislators hoping to secure a safe haven for financial institutions that serve hemp and hemp-made CBD companies. Los Angeles hemp business attorneys know this key measure is necessary, despite the passage of the 2018 Farm Bill that made hemp legal.marijuana banking

The banking bill, also known as H.R. 1595, passed 321-103 in the House with wide bipartisan support, with 91 of those who voted for it being Republican. It’s unclear whether it will face much fierce opposition in the Senate or what the president’s position would be if it lands on his desk. There are Senate committee chair Republicans who are in support of cannabis banking reform measures, though none have specifically mentioned hemp.

If passed, the measure would direct U.S. banking regulators to draft guidelines to federally-backed financial institutions affirming the legality of both hemp and CBD products extracted from it – within 90 days of the law’s passage. The federal regulatory directive would outline best practices for banks on how to follow the law in offering financial services to any hemp-related business (which can include contractors, landlords, plumbers, etc.). Continue reading

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