Articles Posted in California marijuana business lawyers

We reported recently in our Los Angeles Cannabis Attorney Blog that a report from marijuana analytics team Vessel Logistics, showing that even if California cannabis farmers were to slash their production of the plant by 50 percent, we would still end up with a significant surplus of marijuana. This could have significant implications, potentially spurring cannabis companies at every leg of the supply chain to fold. cannabis farmer attorney

Pot Shops Bogged Down by Regulation, Cheap Black Market Competitors

Part of how we got into this mess was California’s historical reliance on black-market sales, including those out-of-state. Federal law prohibits transport of marijuana across state lines, considering it a serious felony drug trafficking offense. Prior to legalization (even after by companies that hadn’t yet obtained a permanent permit) businesses reportedly offloaded excess marijuana product (including that which failed to meet the strict lab testing guidelines issued/overseen by the California Bureau of Cannabis Control) to those willing to pay a little less for it on the black market. A lot of that product then went east, to states where the drug wasn’t easily found or where the only market for it is illicit. Continue reading

So much weed is being grown in California, it could create a bubble that will soon leave us set up for bust. There are too many marijuana farms, too much product and not enough demand. It has the potential, according to Vessel Logistics, to result in an an industry collapse. This is obviously something to which marijuana businesses and our Los Angeles marijuana business lawyers are paying close attention. cannabis lawyer L.A.

The research firm/marijuana distribution company, crunched the numbers to learn nearly 1,150 acres of cannabis farms have a permit by the state. Those farms can generate an estimated 9 million pounds of the crop annually, yet the wholesale marked for the drug in the state – just realistically at this point – is about 2.2 million pounds. That means even if cannabis farms cut their production by half – we would STILL have an overstock.

In a typical trade situation, we’d look to offload that excess to markets in other states selling less. But we’re forbidden to do that by federal and state law. The drug remains a Schedule I narcotic, which our Los Angeles marijuana lawyers know that neither farmers nor distributors can ship this product across state or international lines without breaking serious felony drug trafficking laws – even when those states allow the drug to be used and sold legally.

Using marijuana is legal in California, but apparently, if you’re up for top-level security clearance with the U.S. government, you may want to think twice. employment attorney

The Orange County Register reports The Pentagon is reviewing the federal security clearance of California tech billionaire Elon Musk following an on-air marijuana toke on a comedian’s podcast last fall. Musk reportedly refiled the SF-86 security form required of federal contractors and/or employees who seek security clearance. The form requires filers to answer truthfully whether they have used any illegal drugs at any point in the previous seven years. Musk reportedly had a higher-level secret clearance, thanks to his position spearheading a company (Space Exploration Technologies Corp. – SpaceX for short) that is permitted launch of military spy satellites.

The company’s day-to-day operations aren’t overseen by Musk, and the company won several national security space launch contracts in the wake of the podcast, but the Register reports it’s only with the refiling that Musk may have some issues.

Employers, Contractors Allowed to Set Ground Rules for Off-the-Clock Cannabis Use Continue reading

A real estate developer who publicly referred to herself as the state’s “cannabis landlord” was arrested by San Bernardino police in a raid on her home in Pacific Palisades. The 44-year-old was arrested on suspicion of possession for sales of a controlled substance in violation of state laws, according to The Los Angeles Daily News. Her bail was set at $30,000, and in addition to $200,000 in cash seized from her residence, they also reportedly also seized large quantities of oxycodone pills and a prescription for Norco (also known as Hydrocodone).San Bernardino marijuana lawyer

So why was this cannabis landlord targeted while others in Los Angeles and elsewhere in Southern California are largely left alone? Our San Bernardino marijuana business lawyers understand authorities had been investigating the high-profile real estate developer for over a year for engaging in marijuana cultivation activities that were in violation of California law. In December 2017, authorities raided four of her properties in San Bernardino, wherein authorities reportedly seized 4.5 tons of marijuana. She, however, was not at any of the sites in question and was not arrested at the time.

Although it is true that growing marijuana is legal in the state – even for recreational use – one cannot presume they will evade the scrutiny of authorities in Southern California if they aren’t following state law and local ordinance to a “T” – which is easier said than done where the patchwork of laws is almost seemingly confusing on purpose. This is why having an experienced San Bernardino marijuana business attorney to help guide you through the process is imperative.  Continue reading

Shops that are operating unlawfully throughout Southern California are widespread, but making a black-and-white distinction has proved difficult. Many of the illicit marijuana shops in Los Angeles are selling the exact same kinds of goods that are offered through licensed retailers and farmers – but at a fraction of a cost. It’s a reality that, as The Orange County Register reports, even has some legal marijuana company owners selling black market wares on the side to make ends meet. These double-dipping players are part of the reason why black market weed in California is believed to be eight times the size of the legal market, though many of those involved say they have no choice when regulation and taxation have created a situation wherein they could not financially survive otherwise.California marijuana lawyer

The stakes for illegal marijuana businesses in Los Angeles are high. As our L.A. marijuana business attorneys can explain, getting caught can mean loss of businesses, loss of assets (including homes, cars and bank savings), severe fines and even criminal penalties. Some have even designated so-called “go-to-jail-guys” to take the fall in the event they are caught.

City leaders say the only power they wield against the unlawful firms at this point is to make it so that black market sales isn’t worth the profit. Local government only has limited means to make that happen, but the Los Angeles Daily News reports the city has vowed to start with their power sources.  Continue reading

For a long time, marijuana’s illegal status under the U.S. Controlled Substances Act has barred study of the plant for most scholars. And while that law (still) has not changed, The Cannabis Law Firm in Los Angeles is aware of an increasing number of colleges adding so-called “marijuana majors” to the roster of available higher education options.marijuana lawyer

According to VOANews.com, a number of colleges have launched four-year degrees in in marijuana-related studies, such as medical plant chemistry, marijuana policy and law. Courses focus on the technical, horticultural, legal, social and political impacts of the plant in all areas of society.

As a law firm that has been focused on representing California marijuana businesses for nearly the last two decades, it’s been encouraging to see these areas of study morph from something of a joke to a field of studies that even Ivy League schools are taking very seriously, fully intent on preparing students for a blossoming career field. Continue reading

Authorities in Los Angeles allege three men in Southern California received funding from China to engage in a scheme to purchase residential real estate and turn it into lucrative marijuana grow operations. Los Angeles marijuana criminal defense

NBC-4 Los Angeles reports the men, ages 37 to 44, all of Pasadena, were each charged in an L.A. federal court with one count of manufacturing, distributing and possessing marijuana with intent to distribute. As our L.A. marijuana criminal defense lawyers can explain, depending on the amount of marijuana purportedly involved, this could result in a maximum prison term of anywhere from 5 years to life, per 21 U.S.C. § 841.

Investigators allege the men were wired millions of dollars from China in order to buy homes that would be used in illegal cannabis grow operations. During one of the search warrants executed, authorities reportedly seized some $80,000 in cash plus 1,650 marijuana plants. Federal authorities took possession of at least seven houses, with an estimated cumulative value of $5 million, per the U.S. Attorney’s Office.  Continue reading

Since cannabis was legalized in cannabis last year, there has been swelling concern that Canadians could be banned from entering the U.S. just for being honest about whether they worked in Canada’s legal marijuana industry. Our California cannabis lawyers understand that fear has now come to fruition, and a law firm in Washington State is suing the federal government demanding to know the authority on which the government is basing its actions, which include lifetime bans on U.S. entry to Canadian cannabis workers.marijuana attorney

The concern is that such action is poised to have a chilling effect not only on U.S.-Canadian relations, but also on the Canadian cannabis industry. Los Angeles marijuana business attorneys know that the CBP officers are empowered with very broad discretion not only to question those who wish to travel into the U.S. on a wide range of subjects. What’s less clear is what authority these officers or the agency in general has to issue lifetime bans into the country, particularly from our northern neighbors.

The Toronto Star reports the legal team behind the suit includes a former U.S. attorney now in private practice. The lawyer’s team alleges the U.S government has unlawfully withheld documents requested by his firm in accordance with the Freedom of Information ACT (FOIA) specifically pertaining to the practice of Canadian cannabis worker border bans.

Some 10,000 California marijuana farmers are going to be out of a legal grow license if state lawmakers don’t act fast to extend the temporary licensing that is set to expire. Of course, Orange County marijuana farming attorneys know the failure of the state to act fast is part of the reason farmers are in this predicament to begin with.cannabis attorney

Proposition 64 authorized state regulatory agencies to grant marijuana businesses temporary licenses for operation until the state could issue permanent licenses. Problem is, the state never got around to issuing those licenses because of bureaucracy.

Now, Democratic state Sen. Mike McGuire is sponsoring SB 67 that would rectify this and extend those temporary licenses to cannabis farmers so they wouldn’t suddenly be out of compliance. McGuire explained in a hearing on the bill that the intention is to protect cannabis farmers who did their best to comply with the law by applying for a state license just after the passage of Prop. 64.  Continue reading

From the outside looking in, it might seem as if California is a haven of progress for pot proliferation. In reality, nearly two-thirds of California cities expressly bar marijuana businesses from establishing roots. Our Los Angeles marijuana business attorneys know this underscores the hurdles marijuana entrepreneurs face in attempting to break into the world’s biggest cannabis market. They are left with limited options for where such shops can be open. Even in the 161 of California’s 482 cities where it’s allowable, marijuana businesses are strictly regulated and heavily taxed. California marijuana

That’s why any individual or investor considering entry into the marijuana industry in Southern California should consult with a dedicated business attorney who has extensive experience specifically in marijuana law.

The Mercury News reported last year that just one in seven cities in California has entered the marijuana industry. That figure hasn’t changed much since then.  Continue reading

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