Articles Posted in California marijuana business lawyers

California’s marijuana industry is seeing some major money, with investors pouring millions of dollars into new bud ventures. Recently, Esquire reported San Francisco 49ers football legend and four-time Super Bowl champion Joe Montana was part of a $75 million investment made on a California marijuana company. Our Los Angeles marijuana investment attorneys know this was actually the second time Montana had gone in on such a venture, the first time pouring funds into a Canadian marijuana media company called Herb, which as of mid-2017 had raised $4.1 million to expand its venture to the U.S. Los Angeles marijuana lawyer

Montana explained his reasons as somewhat philanthropic, saying he supports the industry as a whole because he believes in the power of the plant to offer pain relief with the potential to blunt the raging opioid crisis. (A number of retired football players have said they prefer pot for pain management.) And yet, he himself won’t cop to being a cannabis user, something that still apparently speaks to the stigma that followed the drug for so long. There is also a possibility that he, like many marijuana investors, is reticent to speak too much no the topic given the fact the drug is still illegal at the federal level.

Los Angeles marijuana investment attorneys know that first of all, the profile of cannabis company investors differs from that of the norm. Part of this is because many of the cannabis start-ups are simply too small to go for the big fish. What they can do is seek buy-in from single, high net-worth individuals. Another reason these arrangements are atypical is because investors need to know there are some elements that are a bit in the legal gray zone. Huge firms aren’t likely to buy-in for such a risk with relatively low returns (compared to their average). Most of this stems from the fact cannabis remains categorized as a Schedule I narcotic.  Continue reading

Lawmakers in California are exploring ways to ease the financial pressure many pot companies are under, with many saying lowering taxes on cannabis products being one of the best ways to facilitate real competition against the black market. Our Los Angeles marijuana lawyers know this has resulted in serious struggle for some shops in the last year since recreational marijuana hit the market. The AP reports a number of marijuana industry-backing state legislators have proposed a measure that would cut taxes for these firms and offer a much-needed jump-start needed to get back in the game.Los Angeles marijuana lawyer

Assembly Bill 286 proposes to:

  • Temporarily lower from 15 percent to 11 percent the tax legal buyers pay when they purchase from a California dispensary
  • Ax the nearly $150 tax applied per pound on farmers – at least for the next three years.

Analysts say sales of legal marijuana in the last year from $3 billion in 2017 to $2.5 billion in 2018. This is of huge concern because in 2017, the only kind of marijuana available for purchase was medicinal. Recreational marijuana wasn’t available for retail until Jan. 1, 2018.

Legislators opined the high taxes were hurting the companies that are trying to follow the law by creative cash incentive for consumers to seek black market retailers. This was the incentive for the Temporary Cannabis Tax Reduction bill.  Continue reading

The California marijuana industry and those who advocate on its behalf have fought tooth and nail for every inch of its legitimacy. Now, our Los Angeles marijuana lawyers know we may be facing the biggest hurdle yet: Getting legal buyers in the door. Los Angeles marijuana lawyer

The New York Times recently reported anticipated tax revenue drawn in by the California legal pot market were disappointing. Although the industry generated more than $2.5 billion last year, the state still overshot its anticipated take by more than $100 million. Even worse – that figure was half a billion less than sales in 2017 – when recreational marijuana wasn’t even legal in California yet.

It’s not that pot shops don’t want to pay the piper. The problem is that at rates that high ($150 per pound on cultivators and 15 percent by recreational retail buyers) it creates incentive for consumers to buy their buds from elsewhere. It also doesn’t help that the regulatory requirements laid out by the Bureau of Cannabis Control require extensive testing of products, which also costs a pretty penny. This two combined are taking a financial toll that has meant that buyers of recreational marijuana are paying significantly more for legal cannabis – and most would rather not if there is an alternative.  Continue reading

A lawsuit by the California Growers’ Association over the stacking of licenses by small-scale cannabis farmers to allegedly create large-scale grow sites, thereby subverting the intent of Prop 64, will be dismissed. Although neither the association, nor the California Department of Food and Agriculture (case defendant) have commented publicly on the motive for moving for dismissal, a couple of the growers who were the subject of litigation, having some 200 licenses each, say California is big enough to support small and large operations alike. Smaller growers, they say, can carve a cult-like following by capitalizing on the artisanal. Commercial production for things like medical-grade CBD and related products, however, can’t be produced practically for a profit by small-scale operations, they said.growoperations-300x169

As our Los Angeles marijuana attorneys can explain, the state’s Department of Food and Agriculture published its final rules for awarding marijuana grow licenses per Proposition 64, with licenses granted according to the size of the farm.

Licenses for “medium-sized” cannabis farms would allow one person or entity a maximum 1 acre outside or 22,000 square feet indoors. “Large” marijuana grow farms (larger than 1 outdoor acre or 22,000 feet of indoor space) aren’t being awarded until 2023, the idea being smaller, mom-and-pop grow operations will get a head start before the large agricultural companies can come storming in. There was, however, no designated license for “small” farms, at least initially. Continue reading

A final rule from the California Bureau of Cannabis Control went into effect this month permitting delivery of cannabis anywhere in the state – even in cities where cannabis has banned. It was no secret the California League of Cities was majorly opposed to this, and last summer submitted an open letter to the cannabis control regulation office arguing the regulation – Section 5416(d) – undermined the ability of local agencies to set their own community standards. The BCC moved forward with the proposed rule anyway, and now our L.A. marijuana delivery attorneys are monitoring the situation, as cities appear poised to duke it out in court.

Meanwhile, amid a spate of arrests by the California State Highway Patrol of marijuana delivery drivers and seizure of their cannabis company goods, the California Office of Administrative Law issued a ruling last week issued a ruling clarifying how marijuana distributors should move about the state. This new rule affirmed the BCC’s regulation indicating these operators can deliver to any jurisdiction, provided the delivery is conducted in compliance with all the BCC’s delivery provisions in place at the time. L.a. marijuana delivery lawyer

It’s been over one year since California opened the largest U.S. retail market for recreational marijuana. Nobody disputes that limited personal possession and private use of the drug is legal almost anywhere (with some restrictions allowable for federal buildings and property, landlords and private property owners). However, the restriction of cannabis sales is within the purview of local communities, per Prop 64 (the measure voters approved in legalizing recreational use marijuana). The question is where deliveries fall in all of this because while it does equate to distribution, actual sales occur elsewhere.

And of of course, as our L.A. marijuana delivery attorneys know, rules for marijuana delivery are likely to be hard-fought as well.

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Standalone CBD shops – those selling oils or other products made solely from cannabidiol (a chemical compound found in the cannabis plant that does not contain the psychoactive elements of THC) – are not expansive in California, but they have gained footing in some cities that have otherwise banned full marijuana dispensaries. They are also proving popular options in states where the drug itself may not yet be legal, particularly in light of the recent passage of the federal Farm Bill, which included provisions that legalized hemp, from which CBD oil can be obtained. L.A. CBD business attorney

Los Angeles CBD shop attorneys understand that while these little stores are outnumbered by the full-service cannabis dispensaries in the city hundreds-to-one, these store owners say they were drawn to the business primarily for the health benefits and variety of products (salves, tinctures, creams, edibles, soft gels, tinctures and more), but also for the reduced legal risk and ease in securing insurance and funding. One in L.A., for instance, sells only hemp-made CBD oil expressly for this purpose Shops that sell only CBD aren’t required to have the pricey licensing, as is required by legal cannabis dispensaries in California.

Such stores have also opened in Missouri, Texas, Kansas, Arkansas, North Carolina, Minnesota, Louisiana, Florida, Georgia, Mississippi and Ohio. What the Farm Bill, signed in December by the president, did was remove hemp from the list of controlled substances, allowing states to freely allow permanent cultivation programs, and farmers can be eligible for crop insurance and grants.  Continue reading

Let’s talk pot shop. As long-time L.A. marijuana lawyers, we’ve seen the industry in California morph from its early days as the first state in the U.S. to legalize medical marijuana in the 1990s to joining a growing number of cannabis companies celebrating legal recreational use of the drug, officially allowable after Jan. 1, 2018. However, the passage of this measure did not open the market floodgates. In fact, certain rules are fairly strict and you must be mindful of them when in public, engaging in business with marijuana companies and especially if starting one yourself. L.A. marijuana lawyers

For those who may be new to California, just landed a job here, have an upcoming visit or perhaps are just now interested in testing the THC waters, here are the main things you need to know.  Continue reading

It’s not only pot smokers who line outside California’s cannabis dispensaries. Personal injury attorneys may be lurking nearby as well, watching for the opportunity to pounce on a possible product liability claim if an marijuana product makes someone sick or results in an injury. This is particularly true because many states allow punitive damages (up to three times one’s actual damages, intended to penalize the defendant for egregious wrongs rather than simply compensate the plaintiff) for injuries an intoxicated person causes to others. product;iability

Marijuana product liability attorneys in Los Angeles have concluded cannabis companies with perhaps the greatest vulnerability are those that produce edible products. Soda, gummies, truffles, cookies, truffles, brownies, potato chips, wines – the list is endless. But the waters of marijuana product liability lawsuits aren’t well-tested.

Such lawsuits will assert that marijuana products are defective, dangerous, mislabeled and/or the makers and distributors failed to issue adequate warnings about these risks. Continue reading

Marijuana has been around since before recorded history, but as it was illegal for almost the last 80 years of U.S. history, we’re only just now seeing a rush on pot-related patents. Technically, as our Los Angeles marijuana attorneys can explain, the classification of cannabis within the U.S. Controlled Substances Act (CSA) has in turn meant it would be tough for anyone patent or trademark holder to defend their right to that protection in federal court. Not to mention: Is it even possible to patent a plant that’s been around forever?marijuana lawyer

As an increasing number of states approve marijuana for legal sale and use (not to mention the fact that it’s now fully legal in Canada), companies are rushing to secure patents from the U.S. Patent and Trademark Office, which according to a recent Reuters report increased the number of patents issued containing the words “marijuana” or “cannabis” from 14 in 2016 to 29 in 2017 to 39 last year.

Of course, securing patents for possibly new uses of cannabis products isn’t an entirely new practice in the U.S., where the age-old botanical only first gained any measure of legality in California in 1996. But even before that, starting somewhere in the 1990s, some of the world’s largest pharmaceutical firms started quietly securing U.S. patents for medical applications of marijuana. Abbvie reportedly now has the most, with 59 patents and 95 U.S.-published medical applications of the drug. Merck is No. 2., with 35 patents and 55 U.S.-published medical applications. There are also several patents held by universities – and even the U.S. Department of Health and Human Services (which holds 11 patents and 39 published applications). Continue reading

Los Angeles marijuana attorneys have been fighting for the cannabis rights in California for two decades now. As one of the oldest-serving cannabis law firms in Los Angeles, the biggest city in the first and largest state ever to approve medical marijuana, it has not been without its many, many challenges – from a patchwork of local laws at the community level to the federal raids of dispensaries operating legally under state but not federal law to the disparities revealed when police officers were given broad discretion in deciding who to civilly cite versus who to arrest for petty possession crimes. Every battle saw this once-demonized plant inch closer to legitimacy, closer to legalization. We still aren’t there. We won’t be until the federal government removes marijuana from the federal list of Controlled Substances, does more than look the other way at state-approved marijuana sales and allows these companies to operate with the same protections as any other business, its customers treated like any other patron.California cannabis attorney

Looking back, 2018 has been a banner year for legalized marijuana across the country – including here in California, where it all started. One legislator and long-time marijuana advocate commented that “this was the year the movement crested,” meaning action that would overturn the federal ban is imminent now that two-thirds of all states have some form of legalized medicinal marijuana, 10 allow recreational marijuana and more are sure to follow.

After voters approved legalization of recreational marijuana in 2016, the legal market couldn’t simply swing open the doors the next day. The state established an oversight board, set product standards, carved out power to local communities and allocated the tax revenue generated. This year marked the year California became the biggest legal marijuana marketplace in the U.S. Continue reading

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