California marijuana legalization

January 24, 2017

Local Leaders Ask Feds to Ease Marijuana Banking Rules

Leaders in California and Massachusetts are asking the federal government to ease up on rules that keep banks from doing business with those in the marijuana industry. bank money

Specifically, California’s state Treasurer John Chiang formulated a group of 16 bankers, marijuana industry leaders and elected officials to define the problem as it relates to banking and work on hammering out some type of solution. Meanwhile, U.S. Senator Elizabeth Warren (D-MA) penned a correspondence with the Financial Crimes Enforcement Network, asking for rules and guidance for banks and dealing with cannabis businesses.

The majority of banks, financial institutions and credit unions won’t work with the cannabis industry – even those who work in businesses that are ancillary to the industry, such as product testers or product suppliers. Growers and distributors function almost entirely on cash-based models. Meanwhile, California’s first recreational marijuana businesses are slated to open sometime in 2018, per the recently-approved Proposition 64, which legalized marijuana use for and distribution to adults over the age of 21. The state now has one year to work out some kind of banking services model that is going to be workable in the legal framework. The big issue, of course, is the federal law that outlaws marijuana for any purpose. It doesn’t appear federal officials are likely to budge on this issue anytime soon, as the U.S. Drug Enforcement Administration has steadfastly refused to reclassify marijuana from its Schedule I status – maintaining it in the same danger class as heroin. Continue reading

December 28, 2016

Planning Marijuana Strategy Under Trump Administration

By Cannabis Law Group

As we head into 2017, there is a great deal of uncertainty about what a Trump administration will mean for those in the marijuana industry in California and beyond. Cannabis advocates and industry players are struggling with attempting to formulate a strategy when no one knows exactly what the President-elect thinks about legalization. americanflag

There have been efforts to piece together an idea of what the strategy will be, based on off-hand remarks and Trump’s cabinet picks. Then there is the fact that conservatives have historically demonized marijuana use (including both the new attorney general, Sen. Jeff Sessions, as well as the new health and human services secretary, Rep.Tom Price). But then there is also the fact that Republicans have largely embraced the notion of empowering states’ rights. Plus, marijuana is no longer a red-blue issue, with many conservative Republicans favoring legalization, and there are also liberal Democrats who oppose it. Trump himself has said that he is in favor of medicinal marijuana access.

In light of all this, those in the industry have worked out some loose-level strategies and ideas that will likely need to be tailored as time goes on and the policies become more concrete. Continue reading

December 18, 2016

Marijuana Legality: Not a Done Deal, Despite Public Approval

By Cannabis Law Group

Cannabis has made major strides in terms of public opinion in recent years. Today, a majority of Americans say marijuana should be legal. In November, California voters agreed it should be legal for recreational use. More than half of all states now have some form of legal access to medical marijuana. It would seem, then, the next logical step would be for the federal government to step back from the stringent law that’s currently on the books – the one that classifies marijuana as a Schedule I narcotic with no redeemable value – and create a policy that more fits the modern legal landscape.

Not so fast. As the Associated Press recently reported, two of President-Elect Donald Trump’s top picks for prime cabinet positions – Sen. Jeff Sessions of Alabama and Rep. Tom Price of Georgia – could mean a new crackdown on marijuana-tolerant states, including California.

Just this past April, Sessions was quoted during a U.S. Senate hearing as saying that those who smoke marijuana are “not good people,” and likening those who believe marijuana should be legal are not grown-ups. He added that legalization of marijuana posed a “very real danger” to America. Continue reading

December 10, 2016

California Marijuana Law Erroneously Allows Tax-Free Marijuana Through 2017

By Cannabis Law Group

California’s new marijuana law could cost millions in taxpayer dollars before it actually raises billions, thanks to a technicality in the language of the law that was just passed.

Prop. 64, which legalized recreational marijuana, was always intended to raise substantial tax revenue for the state. However, it was intended to do so with a 15 percent excise tax on both medicinal and recreational marijuana. The law also imposes a 7.5 percent sales tax on top of that for recreational marijuana, but repealed it for medical marijuana. Medical marijuana buyers have been paying that sales tax since the drug first became available as medicine. The idea was that medicinal users of the drug would get a tax break relative to recreational users once recreational sales start in January 2018. However, there was one problem: The 62-page initiative did not include the January 2018 target date relative to the repeal of the medical marijuana sales tax.

That means the repeal of medical marijuana sales tax in California became effective immediately. It also means that medical marijuana may be obtained tax-free in California until next January, when it will be under that 15 percent tax. Continue reading

November 23, 2016

Workplace Prohibitions on Marijuana Still in Effect Despite Legalization

By Cannabis Law Group

No matter how many states legalize recreational marijuana, the corporate policies of private companies can play a big role in whether people will actually imbibe. job

A recent study by the American Public Health Association, presented in Denver, delved into the issue of what mattered most to those in five state where voters were mulling legalization. The goal was to examine what regulatory approaches states might consider making if they wanted to influence usage.

Researchers surveyed some 535 adults in California, Florida, Arizona, Massachusetts and Michigan, weighing their responses in four different scenarios. What they discovered was:

5 percent said state tracking of their marijuana purchases would deter use;
5 percent said the threat of arrest for smoking in public would deter them;
A price increase of $20 per gram (through higher taxes and fees) would slash usage by 5 percent.

But the biggest potential influence? Employers. Continue reading

November 14, 2016

Economy of Cannabis: Buying vs. Growing

By Cannabis Law Group

Marijuana is likely only going to increase in price. The question for many becomes: Should I grow it myself or buy it in a dispensary? cannabis

There are pros and cons to each, of course. Understanding what those are can help you make an informed decision.

Traditionally, cannabis has been produced on a small scale for purposes of flying under the radar of law enforcement. That means a lot of people have some knowledge of how to grow the plant. However, with a burgeoning legal market, people now (or will soon) have the option of choosing an array of products with specific chemical make-up and purpose – similar to what we would find in a grocery store produce aisle. And just like grocery stores, marijuana dispensaries are going to receive their supply cultivated from farmers who carefully produce the product and make it available for a reasonable price. Continue reading

November 12, 2016

San Jose, Other Communities, Ban Marijuana Before Vote

By Cannabis Law Group

Days before the Nov. 8 election with the California ballot measure considering legalization of recreational marijuana, the largest city in the Bay Area, San Jose, voted to temporarily ban recreational marijuana sales there. cannabis

The city joined a growing number of other municipalities that preemptively banned recreational sales or passed certain regulations that limited cultivation, processing and distribution of non-medical marijuana in anticipation of Proposition 64, legalizing marijuana for adults.

San Jose city officials told The Mercury News the ban was an effort to curb illegal marijuana shops from opening immediately after the law passed. The ban is notably temporary, though there is no date at which the measure is slated to sunset. Leaders say this will allow them additional time to formulate a regulatory plan to help ensure proper oversight of dispensaries and shops within its borders. Continue reading

November 10, 2016

Marijuana Wins Big on Election Night

By Cannabis Law Group

No matter what side of the political aisle on which you fall, there was a single general consensus about the Nov. 8th election: Marijuana won big. american flag

Voters in California, Nevada and Massachusetts approved initiatives for recreational marijuana. Numerous other states passed medical marijuana provisions. Collectively, this proved to be one of the largest electoral victories for the reform of marijuana laws in four years, when both Washington and Colorado were the first to green-light recreational use of the drug. It’s worth noting that similar legislation in Arizona didn’t pass, with 52 percent of the voters rejecting legal marijuana.

Medical marijuana laws were passed in Florida, Arkansas and North Dakota, and Montana loosened restrictions on the existing medical marijuana statute. Supporters of marijuana reform called the night “a monumental victory.” In total the percentage of states where marijuana is now legal for adult use climbed from 5 percent to 20 percent.

With California on board, there is hope that the federal government will soon end the national prohibition on marijuana – which could perhaps spur international change. California for a long time has been the state that serves as a bellwether for marijuana reform – and opposition. It’s a state where 12 percent of the U.S. population resides, and given the potential impact on the economy and other elements, it could very well encourage federal authorities to start rethinking the way they have approached the use of marijuana for the last handful of decades. Continue reading

November 9, 2016

Why Prohibition – Marijuana or Otherwise – Never Works

By Cannabis Law Group

The Eighteenth Amendment in the U.S. was coined, “the noble experiment” because the goals were lofty. The purpose of the amendment, enacted in 1920 and spanning all the way through 1933, was to eradicate crime and corruption, solve social problems, reduce the prison and “poorhouse” induced tax burdens and bolster health and hygiene in the U.S. As we now know, it failed miserably on all accounts. bar

We can take into account these same lessons with regard to our “War on Drugs” and specifically marijuana prohibition. Alcohol prohibition did initially result in a decline of alcohol consumption. But later, there was an uptick. The alcohol that was available was more dangerous. The crime became “organized” and gave rise to the power and wealth of mobsters. Otherwise ordinary citizens became criminals and our courts and prisons became overwhelmed. There were no marked gains in workplace productivity or reduction in absenteeism. It also removed a substantial tax revenue source, and led users in many cases to turn to more dangerous substances, such as cocaine, opium or prescription drugs.

Sound familiar? Continue reading

September 29, 2016

Poll: Most California Voters Back Legal Weed

By Cannabis Law Group

It’s been six years since a law that would have legalized recreational marijuana was shot down. It’s also almost a month until California voters consider it once again. There is strong evidence to suggest this time, the outcome will be different. That’s because if polls are to be believed, voter attitudes are significantly different. votehere

A new USC Dornsife/ Los Angeles Times poll reveals that California voter support for Proposition 64, the measure that would legalize recreational marijuana for personal use in this state, is at nearly 60 percent. What’s especially interesting is that support stretches across lines of race, gender, ethnicity and income. Even those from the two warring political parties generally agree on this issue.

The law would grant over-21 Californians the right to buy, keep and use a maximum of 1 ounce of cannabis for recreational purposes. It would also allow a person to grow up to six cannabis plants. The law would also require a 15 percent retail tax on the substance. Of the nearly 1,900 respondents, only a third said they outright would refuse to support the ballot measure if the election were today. Another 8 percent said they had no opinion one way or the other. Continue reading