California marijuana business lawyers

September 1, 2019

For California Cannabis, Civil is the New Criminal

cannabis lawyer California’s unlicensed farmers in Humboldt County are on notice, with a new crackdown on cannabis growing now in effect. After issuing 1,500 provisional cannabis licenses, state and local authorities are increasingly pursuing farmers for operating without permits.

And it’s not what we’ve seen in years past. Growers need not fear raids from Sheriffs in Humboldt, as much as they should civil action. That’s right, fines are now being issued in the amount of $10,000 per day, for each violation, capping out only at $900,000. And if that isn’t deterrent enough, next comes property liens and forfeitures.
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August 10, 2019

Bill Reversing City Cannabis Sale Bans Shelved, But Expected to Resurface

By Cannabis Law Group

A big part of why black market buds are still big business in the Golden State has to do with the fact that there are still so many cities and municipalities that ban the substance outright. But a major provision of Prop. 64, which legalized the drug, was that it gave cities the right to decide for themselves the extent to which they welcomed the cannabis industry – if at all. cannabis lawyer

In the spring, a bill introduced by a California Democrat from San Francisco promised to put that aspect of the law on the chopping block, requiring cities that had enacted bans to put their measure to a local vote. Anywhere more than half the electorate was against their local ban, it would be reversed.

Assembly Bill 1356, introduced in February, had the potential to triple the amount of storefront pot shops in the state – from about 630 to more than 2,200. It called for allowing at least one cannabis store to every four liquor stores or one for every 10,000 residents. Continue reading

August 9, 2019

Legal Concerns for Hiring Retail Workers in Cannabis Industry

By Cannabis Law Group

When it comes to hiring, retail cannabis operations have some special considerations. A consult with a California marijuana business lawyer helping entrepreneurs navigate the world’s largest cannabis marketplace should not overlook corporate structure, business plans – and hiring. Our team has longtime experience, both in cannabis and employment law. cannabis business

Human Resources is a budding new branch of the cannabis industry, as marijuana retailers want to be certain they are following both the spirit and letter of the law when it comes to recruitment, hiring, promotions and adverse employment action.

Job growth in this sector has reportedly been impacting other industries, such as hospitality and restaurants, where cooks, servers and others are flocking to greener pastures. Some dispensaries are finding they have a glut of applications and resumes, so the question becomes how to hire the best people – and cover all your legal bases. Continue reading

August 7, 2019

Twitter, Snapchat Ads Can Land California Sativa Sellers in Hot Water

By Cannabis Law Group

Navigating the rules of advertising isn’t easy for California marijuana businesses, and some have turned to more fleeting mediums like Twitter and Snapchat – presuming there is considerably less risk. Los Angeles marijuana advertising lawyers know that while it’s certainly possible to post your pot shop posters in these mediums, it’s not without potential liability. cannabis company advertising

Federal and state regulations on marijuana advertising are murky – and there can be possible repercussions both for cannabis corporations and publishers of that material. Social media giants aren’t likely to open themselves up to federal or state regulatory action if they can avoid it, especially when they can do just fine without the income.

Specific legal strategies should be formulated in close coordination with your cannabis company attorney (and if you don’t already have one, in this industry, you should get one). Generally speaking though, there are a few ways you can capitalize on social media marketing – if you’re careful. This is especially true considering these platforms are evolving to require more “pay-to-play” advertising, rather than putting as much emphasis on organic likes or hits. Continue reading

August 5, 2019

Growing Pains for California’s Weed Tracking System

By Cannabis Law Group

In January, the state of California kicked off an online rollout of its marijuana inventory tracking system. At a glance, marijuana businesses across the Golden State appear to be successfully reporting product inventory each day, via the California Cannabis Track-and-Trace (CCTT) system. But not without some growing pains.

To start, the idea of tracking marijuana traveling throughout the supply chain sounds simple enough. In theory, all cannabis products would be given unique identification numbers, noting from which ‘batch’ or ‘lot’ they were born. Products would then be sent to labs for testing. Next, approved products would be passed from producer to distributor, and finally to retailers for sale. At each step, the state should be able to track each piece of marijuana as it moves through the chain, making sure nothing is being redirected out of state, and ensuring everybody is paying their required taxes.

California Cannabis Lawyers

But in practice, a few hiccups quickly come to light. First up, only businesses holding ‘provisional’ or ‘annual’ licenses are required to subscribe to the track-and-trace system. And until last month, there were more than 600 marijuana businesses operating on ‘temporary licenses,’ who would not have had to track-and-trace. This means, there was no way regulators could comprehensively account for every legal product moving about the state.

August 5, 2019

Report: $30 Million Seized From Accused Black Market Cannabis Companies

By Cannabis Law Group

Raids on black market marijuana dealers have become increasingly more frequent. However, many say it’s not enough to have a measurable impact on the scourge. cannabis lawyer

Over the past year, authorities in California have tripled the number of raids on unlicensed marijuana shops, according to the Bureau of Cannabis Control. In the last year, the BCC has targeted unlicensed, black market growers throughout the state by:

Working with local sheriff’s agencies and police departments to serve half a dozen search warrants over the course of a year, yielding some 1,600 pounds of marijuana valued at nearly $14 million.
Using its own agents to serve 20 search warrants on unlicensed marijuana sellers, confiscating more than 2,500 pounds of the cannabis products valued at nearly $17 million.
Seizing more than $200,000 in cash from illegal stores.

Los Angeles cannabis business attorneys have noted too that the governor just approved a maximum daily fine of $30,000 for growers, distributors and sellers who are not properly licensed. And while authorities work to get a handle on the problem, many say even with bolstered enforcement, it isn’t enough – despite the fact that this is exactly the sort of thing that Proposition 64 was passed in 2016 to prevent. Continue reading

August 3, 2019

California Cannabis Growers at Pains as License Renewals Drag

By Cannabis Law Group

California marijuana farmers are facing a crisis. Currently, all 9,464 state issued temporary cannabis cultivation licenses, have expired. Meant to be replacing those, for businesses continuing to meet the required regulations, are either provisional or permanent annual cannabis business licenses.

The catch though, the California Department of Food and Agriculture (CDFA) is yet to show its ability to approve those provisional or permanent licenses, at the same pace applications are being lodged.

California Cannabis License Attorney

The backlog on approvals may be due to the complexity of the licensing application process itself. Tellingly, by mid July 2019, only 2,053 provisional licenses and 230 permanent licenses had been granted. As it stands, when applying for prospective licenses, cannabis farmers are expected to demonstrate compliance with the stringent California Environmental Quality Act (CEQA), as well as submit:

Background checks;
Surety bonds;
Real property documents;
Detailed site plans;
Farm management practices;
Waste management protocols;
Security procedures; and
Pesticide measures.

August 1, 2019

California Marijuana Industry Bracing for Potential DoJ Crackdown

By Cannabis Law Group

The California Department of Justice recently released a summary review of the state’s marijuana laws, leaving cannabis industry insiders are anticipating a crackdown on the black market. cannabis regulations

Attorney General Xavier Becerra’s 16-page document is being referred to as California’s Marijuana Bible summarizes state laws and draws clearer lines as to what is legal – and what’s not – when it comes to medical cannabis. The guidelines are especially focused on the growth, enforcement, transportation and use of medicinal marijuana, and they come after significant changes in the state’s laws pertaining to recreational cannabis.

The record scans through two decades of state law, regulations and guidelines of the growth, sale and transport of medicinal marijuana. Although the Attorney General’s Office referred to it as a reflection on the evolution of the state’s laws, many cannabis lawyers and others see it as a warning shot to unlicensed marijuana operations. Continue reading

July 31, 2019

California Clamps Down on Black Market Pot Operations

By Cannabis Law Group

As the black market for pot sales shows little sign of slowing, Californian authorities have notably increased enforcement action against illegal cannabis traders. Over the last 12 months, raids by law enforcement on black market pot businesses have increased threefold, when compared with similar activity conducted in the year prior. As a result, unlicensed pot growers and sellers have seen a total of $30 million worth of cannabis products seized. But even amid this additional ramp up, cannabis industry insiders say even more activity is needed to curb illegal pot sales across the Golden State.

For context, in 2018 local law enforcement worked in conjunction with the state Bureau of Cannabis Control, and together they served six unlicensed cannabis businesses with search warrants. These raids resulted in the seizure of more than 1,500 pounds of marijuana, said to carry a street value of $13.5 million.

Calilfornia Cannabis Business Licensing Lawyers

Comparatively, according to data release in July, within the first half of 2019 alone, the bureau had already served 19 search warrants to unlicensed sellers. Those raids were successful, and saw more than $16.5 million worth, or about 2,500 pounds of illicit marijuana, confiscated. Just shy of $220,000 cash was also seized from cannabis businesses operating illegally during this time.

July 29, 2019

Investment Interest in California CBD Companies is Rising

By Cannabis Law Group

California cannabidiol (CBD) products are on the map, and investors are taking notice. But given that CBD-infused products are still relatively new to market, regulators continue to closely review the category. For this reason, acquisition strategies may be a ways off yet, but industry insiders predict consumer companies will see high minority investment interest in the short term.

CBD is naturally found in cannabis plants, and is widely known for its relaxing properties. But CBD won’t produce a ‘high,’ as it lacks the psychoactive tetrohydrocanabidiol (THC), found in marijuana. CBD-derived products have quickly grown in popularity, thanks largely to a wide range of potential health benefits, including relieving pain, anxiety, seizures and brain injuries.

California Cannabis Investors

According to Michael Lux, partner at Crowe accounting firm, the next 6-12 months will involve strategic minority investments in the CBD space. He noted too that while the majority of CBD companies are of interest to investors, they are still less than five years old, so they’d likely need a little more time before preparing to engage in full exit strategies.