California marijuana business lawyers

May 19, 2018

Marijuana Opponents Learn to Embrace Joint Efforts

The fight for marijuana legalization is turning a corner in the U.S. Nowhere is the change more evident than in marijuana business Michigan, where recently an anti-marijuana action committee has flipped its stance in an attempt to try to gain control of state regulations, according to a Detroit Free Press report. The group, The Committee to Keep Pot Out of Neighborhoods and Schools, has been fighting a ballot proposal to legalize recreational marijuana in the state. However, as it is becoming more clear the initiative has growing support, the group is trying a different tactic: encouraging state legislators to fully legalize marijuana by passing an adult-use bill.

As our attorneys can explain, those opposing recreational cannabis in the state see the writing on the wall. They know if they allow the issue to appear on the November ballot, it has a strong chance of passing. However if group members can convince the Legislature to take up the initiative and amend it with strict regulations akin to the current medical marijuana guidelines, they are hoping to get a law on the books that is more restrictive than what voters might pass. One of the key differences would be how licenses are issued. Medical marijuana establishments currently obtain licenses through a board put in place by the governor, as well as House and Senate leaders. The ballot initiative would instead put licensing in the hands of the Licensing and Regulatory Affairs Department. Continue reading

May 15, 2018

Too Many Weed Farms? No Such Thing with Hemp and CBD Oil

By Cannabis Law Group

The continued expansion of legalized marijuana in states is leading to one surprising result: overproduction of cannabis business cannabis. Oregon in particular is reporting an excess in cannabis production, which is driving down the price of marijuana at dispensaries across the state, according to Associated Press. As a result, growers are exploring more options, including hemp (a low-THC strain of cannabis used in industrial goods) and CBD oil (made from the non-psychoactive compound in marijuana, cannabidiol).

It’s hard not to recognize the irony in this latest advancement: while hemp is a benign, useful resource that makes excellent, durable fabric, paper products, and oils, it was marijuana that helped usher it back into the spotlight. Marijuana has now been legalized in 29 states and Washington, D.C., at least for medical use with a handful also allowing recreational. This is in defiance of federal regulations prohibiting the sale or use of marijuana. California was the first to allow medical use with the Compassionate Use Act of 1996. It wasn’t until 2014, however, that the Agricultural Act, Sec. 7606 allowed agricultural departments and higher learning institutions to start cultivating hemp for research. Senate Majority Leader Mitch McConnell (R-KY) recently spoke in favor of a bill that would give power over hemp regulation to the states. Continue reading

May 14, 2018

Ohio Marijuana Legalization Struggling But Still Alive

By Cannabis Law Group

Marijuana laws in Ohio have experienced a bit of a failure to launch. In 2015 a legalization ballot measure was voted marijuana regulations down, largely due to a scare campaign that positioned the 10 pre-designated cultivators as a monopoly. In 2016, HB-523 was signed into law by Gov. John Kasich that set up a process for medical marijuana in the state. Since then, however, the initial phase has been a lumbering one. Advocates remain optimistic, though, pushing now for a state constitutional amendment to legalize recreational marijuana.

On the medical front, Ohio’s program is under scrutiny in court, as a judge in the Franklin County Court of Common Pleas is determining whether or not to delay licensing for cultivators, and potentially the launch of the program. According to Cleveland.com, one grower applied for a license and sued the Ohio Department of Commerce after it was denied, claiming there was no appeals process as promised. Reported errors in the scoring of applicants and complaints about officials not following their own rules in the selection process have led to other lawsuits. With only 12 initial promised licenses for large-scale cultivators, the spots are highly coveted. Continue reading

May 13, 2018

Illinois Putting Stop to So-Called Synthetic Cannabis

By Cannabis Law Group

Spice, K2, synthetic marijuana: whatever you call it, we know these alleged cannabis knockoffs have about as much cannabis business in common with the natural drug as a circle to a square. Lawmakers have long been chasing down these dangerous substances, to no avail. But the Illinois State Senate is taking steps to close loopholes that manufacturers have been manipulating once and for all, according to Chicago Tribune.

SB-2341 would expand the list of Schedule I controlled substances to include all synthetic cannabinoids not approved by the U.S. Food and Drug Administration. This is a departure from current methods to control the substance, which has largely involved outlawing by formula. As our cannabis business attorneys can attest, this has so far been a fruitless system of control because each time a formula or chemical is outlawed, manufacturers alter it enough that it qualifies as a new substance. Just like that, a new synthetic cannabinoid is back on the market, but not necessarily any safer. The new law, if passed, would put the onus of proof on the manufacturer that a synthetic cannabinoid is safe rather than government officials proving the substances to be dangerous after they have already hit the market. Continue reading

May 10, 2018

Napa Easing Up on Marijuana Business Restrictions

By Cannabis Law Group

Some local governments have appeared hell-bent on banning or strangling the budding cannabis industry. It’s encouraging in this light to see some leaders embracing the change and making strides to make this a more cannabis-friendly community. marijuana business

The Napa Planning Commission recently endorsed reducing the distance a cannabis business can set up shop to 600 feet from a school or place where children congregate, and even recommended easing up on that rule in instances where a natural barrier would prevent direct access, such as a waterway, according to Napa Valley Register.

For many people, change can be a very scary thing. Often, though, such fears are rooted in lack of education and the feeling of losing control. Once we see new ideas in action, we sometimes wonder why it took us so long to change in the first place, and realize we wouldn’t want things to go back. We see the effects of this sentiment throughout California. Since the passing of Proposition 64, there has been a great deal of caution on the part of cities to slow down change as much as possible. Prop 64 and the follow-up Medicinal and Adult-Use Cannabis Regulation and Safety Act very thoughtfully laid out guidelines that would allow marijuana businesses to begin sales of recreational cannabis, and, in the case of MAUCRSA, brought medical marijuana sales under the same umbrella of rules. These guidelines painstakingly established regulations that would encourage cannabis businesses to operate legally while easing fears of residents. Continue reading

May 8, 2018

YouTube Snuffs Out Cannabis Channels

By Cannabis Law Group

cannabis business Online media giant YouTube has enacted a host of more stringent enforcement guidelines, seemingly at random, restricting and even shutting down many channels its representatives claim violate its policies. Gun-related channels in particular have come under scrutiny. A bit more perplexing, however, is the site’s more aggressive stance against cannabis-related videos recently, sending warnings, flagging content, and shutting down entire channels, particularly those that seek to educate and advocate. Even after complying with warnings, channel owners said they were suspended. Many of the channels had been around for years, some almost since the beginning of YouTube, according to a Leafly article.

In the early days of legalization, before marijuana reached the popularity it is enjoying today, the Internet was the best place for cannabis advocates, business owners, and medical practitioners to learn and to share information. YouTube has always played a big part in that. The highly visual platform was an ideal way to show growing methods and techniques to people on the other side of the country. Today, a bounty of resources exists, but these ground floor YouTube channels still have a wealth of experience to offer. Continue reading

May 2, 2018

Cannabis Businesses, Local Governments to Benefit from New Group

By Cannabis Law Group

Mendocino County is the latest to sign an agreement with the California Cannabis Authority in an effort to help local governments with regulatory compliance and assist in creating a rich pool cannabis business of data about the cannabis industry. Our attorneys know one of the most difficult things about establishing any new industry is lack of concrete data. There can be a lot of growing pains as authorities and economic leaders gather a foundation of facts that help in making critical decisions about public safety, regulations, and taxation. This is particularly true when dealing with a controlled substance, like marijuana. Even though marijuana has been legal for medical purposes in California since the passing of the Compassionate Use Act of 1996, the switch to recreational legalization in the state as of Jan. 1 was a real game changer. MAUCRSA, Medicinal and Adult-Use Cannabis Regulations and Safety Act, was created to combine guidelines for medical marijuana with all the new stringent licensing rules for recreational cannabis, so all regulations lived under one umbrella.

The mission of the newly formed California Cannabis Authority is to “develop and manage a statewide data platform that will gather, collect, and analyze information from a myriad of data sources into one resource.” The more local governments that participate, the more compelling and significant the data will be for everyone who accesses it.

The group was created by the California State Association of Counties Finance Corp. The group started with San Luis Obispo, Humboldt, and Monterey Counties on board, with Mendocino following suit. According to a report by the Ukiah Daily Journal, the platform will make it easier to track tax payments, provide compliance information to county departments, and allow health officials to access product information. Continue reading

April 11, 2018

Tourists Could Cause Marijuana Shortage in CA This Summer

By Cannabis Law Group

California marijuana supply shortages have been of mounting concern, stemming primarily from the introduction of legal cannabis Jan. 1st and the barrage of regulations that came with it. Marijuana businesses have varied reports on supply issues thus far, with some experiencing few supply chain problems, and others reporting major lapses. Many of these issues are typical growing pains associated with a budding new industry. These problems could become major snags this summer, though, when tourist season his, and we’re flooded with curious new customers.

In San Diego, for example, about 8 million tourists visit during the summer months, according to a recent report discussing the potential impending shortage from San Diego Union-Tribune. Lines are already out the door at stores in this city, so there is worry businesses may not be able to keep pace. The issue is not necessarily that overall supply can’t keep pace with demand, but more that businesses are grappling with supply bottlenecks due to erratic regulation across jurisdictions throughout California. Continue reading

March 21, 2018

Tax Bill Would Offer Relief to Cannabis Businesses and Consumers

By Cannabis Law Group

For many years now, attorneys with the Cannabis Law Group in California have been cannabis business working with medical marijuana operations obtain compliance with the law. More recently, we’ve been on the forefront of helping recreational marijuana businesses align their operations with the regulatory parameters set forth in Proposition 64 Jan. 1, as well as those guidelines established by local governments.

However, the level of success a business owner can achieve requires help from all levels, including government officials setting regulations and tax rates. Many owners face a broad range of challenges when transitioning from medical to recreational sales or opening a business for the first time under the new adult-use standards.

Rob Bonta (D-Oakland) and Tom Lackey (R-Palmdale) want to ease some of those pains. They have introduced Assemblybill 3157, which would reduce the state marijuana excise tax to 11 percent for three years. The tax currently sits at 15 percent. The bill states: “The cumulative tax rate imposed by existing law is substantial and undermines the legal regulatory system if high taxes cause prices to far exceed that what is found on the black market.”

March 12, 2018

Colorado Hopes to Bag Residency Requirements for Marijuana Businesses

By Cannabis Law Group

Despite appalling and misguided federal efforts to hold back marijuana businesses, the industry continues to blaze trails with expanded marijuana laws and opportunities, clearing away for progress and reason to prevail.

The latest example comes out of Colorado, where the state is looking to get rid of residency requirements for marijuana businesses. House Bill 18-1011 would allow non-Colorado residents and publicly traded companies own a stake in state-licensed businesses as well as make investments. Right now ownership for non-residents is limited to 15 people. A bi-partisan group of legislators is leading the charge on the bill, which they said will not only attract more investments in the state, but also allow local businesses to be publicly traded, according to The Cannabist.

Officials said Colorado law is causing the state to fall behind roughly a dozen other states that no longer have such limitations. Indeed, California already rid itself of residency restrictions with the creation of Medicinal and Adult-Use Cannabis Regulation and Safety Act in June 2017. The act combined the Adult Use of Marijuana Act and the Medical Cannabis Regulation and Safety Act in an effort to consolidate regulations and laws governing medical and recreational marijuana. Many regulations carried over from the two previous acts, but one notable change was the removal of a rule in AUMA to prohibit licenses from being issued to non-California residents until Dec. 31, 2019.